According to the annual report of Bayut and Dubizzle.

Dubai real estate records unprecedented growth rates during 2021

The real estate sector in Dubai recorded unprecedented upward trends during 2021, which was confirmed by the increase in sales prices and rental rates in well-known residential areas in Dubai, according to a report by Bayut and Dubizzle on the Dubai real estate market for 2021, which also coincided with Increasing the total number of properties offered on both platforms by 75%.

real estate for sale

The data collected from Bayut and Dubizzle showed that the prices of properties offered for sale in Dubai recorded remarkable increases, reaching 35% during 2021, at a time when “DAMAC Hills 2” and “Jumeirah Village Circle” were the two most searched areas from Before potential buyers looking for affordable villas and apartments respectively.

While investors looking for luxury real estate preferred areas and complexes that provide integrated services such as: "Dubai Marina" and "Downtown Dubai" for apartments, and "Arabian Ranches" and "Dubai Hills Estate" for villas.

rental traffic

According to the report, "Jumeirah Village Circle", Al Nahda, Bur Dubai, in addition to Dubai Silicon Oasis and Deira, recorded decreases ranging between 1 and 12% in the average rent of apartments with average prices, with the exception of studio apartments in the Al Nahda area.

While luxury apartments in many well-known areas witnessed significant increases in rent values, reaching 26%.

On the other hand, rents for middle-priced villas increased by up to 21% during 2021, while rents for luxury villas recorded an estimated increase of 41%.

The search for tenants looking for apartments at medium prices focused on the areas of “Jumeirah Village Circle” and Al Nahda, while renters looking for villas at medium prices preferred the areas of “Mirdif” and “DAMAC Hills 2”.

Tenants looking for luxury apartments headed towards Dubai Marina and Downtown Dubai, while Jumeirah and Al Barsha remained the preferred options for renting luxury villas.

The report emphasized that the leadership’s directives, economic stimulus packages, as well as the precautionary measures taken to limit the spread of the “Corona” virus, were all factors that effectively contributed to enhancing the attractiveness of the real estate market, advancing the wheel of growth and enhancing its competitiveness, and thus recording noticeable increases in prices in most regions. emirate.

busy year

Haider Ali Khan, CEO of Bayut and Dubizzle, and President of Emerging Markets Property Group, Haider Ali Khan, said: “2021 was a year full of achievements, as the real estate sector in Dubai continued to confirm its position as a mainstay for growth for all sectors and economic activities in Dubai. This is confirmed by the record increases in sales and rent transactions recorded by the emirate during the past year, which also coincided with the increase in real estate offered on the (Bayut) and (Dubizzle) platforms significantly during the same period.

He added: “According to the Dubai Land Department, the real estate sector in the emirate has attracted more than 38,000 foreign investors from outside the GCC region in the past year alone, which indicates the increasing demand for Dubai real estate in foreign markets, due to many The factors in the forefront are the leadership directives, the economic stimulus packages provided by the Dubai government, as well as the convening of (Expo 2020 Dubai), the flexibility and attractiveness of the sector, and the confidence and transparency it guarantees to investors and various categories of customers.”

luxury apartments for sale

The Bayut and Dubizzle report revealed that luxury apartments for sale in Dubai Marina remained the most sought after among potential investors and property buyers.

Dubai Marina witnessed a remarkable increase in the average price per square foot for luxury apartments by 11%, to reach AED 1,298 in 2021.

And buyers of luxury apartments preferred the high-end neighborhoods such as “Downtown Dubai”, “Palm Jumeirah” and “Jumeirah Beach Residence”, where the average price per square foot for apartments increased at rates ranging between 13% and 27%.

Dubai Hills Estate also recorded an increase in the prices of luxury apartments by more than 9%.

Affordable apartments

The prices of affordable apartments in Dubai witnessed an upward trajectory during 2021. Apartment prices in “Jumeirah Village Circle” remained stable, as the average selling price per square foot during 2021 remained relatively unchanged at 834 dirhams.

Business Bay, Jumeirah Lakes Towers, Dubai Silicon Oasis, and Dubai Sports City were among the most popular areas for buyers looking for affordable apartments.

These desirable areas recorded increases in the average selling price per square foot that ranged from 1% to 11%.

luxury villas

According to the report, Arabian Ranches remained the most preferred destination by potential buyers looking for luxury villas during 2021. The average selling price per square foot for villas was 1,133 dirhams in 2021, an increase of approximately 24% compared to 2020.

The average selling price per square foot in "Dubai Hills Estate" increased by 21%, to reach an average of 1257 dirhams.

The "Palm Jumeirah", "The Villa" and "Arabian Ranches 2" areas were among the most sought after by investors looking for luxury villas, which led to an increase in the average square foot prices by rates ranging between 14% and 35%.

The Palm Jumeirah area recorded the largest increase in the average selling price per square foot, reaching AED 2881.

Rental proceeds in Dubai

In turn, Dubai Sports City recorded the highest return on investment of 7.18% for affordable apartments.

Dubai Marina continued to provide the best return on investment for luxury apartments, with an average of 5.64%.

The affordable villas in “Jumeirah Village Circle” recorded attractive rental returns of 5.9% in 2021. Residential villas in “Arabian Ranches” achieved rental returns of 5.28%.

For its part, “Jumeirah Village Circle” topped the list of areas most in demand for renting affordable apartments during 2021. The average rent for studio and one-bedroom apartments stabilized at AED 28,000 per year and AED 43,000 per year, respectively, while the average rent for apartments consisting of Two-bedroom at a rate of 1% to 63 thousand dirhams annually.

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