'Dubai real estate market: ideal conditions for sellers and landlords'

The UAE's largest real estate portal Bayut has published its Dubai Real Estate Market Report for the third quarter of 2023, revealing the most sought-after areas in the emirate's real estate sector. Following the launch of its innovative artificial intelligence-based property search assistant BayutGPT, Bayut has once again provided real estate consumers with an important set of data with this new report, which is designed to facilitate decision-making and in-depth market analysis.

According to search trends on the platform, real estate prices in Dubai continue to rise, creating an ideal environment for sellers and landlords. The steady price growth is in line with observed trends over the past 18 months, where elevated''Demand and a large influx of new residents have created a boom without precedent.

Data from Bayut shows that sale prices of apartments and villas in Dubai's prestigious neighborhoods rose by 2-12% in the third quarter of 2023. Commenting on the results, Bayut CEO and Head of Dubizzle Group MENA Haider Ali Khan said, "It has been my pleasure to comment on trends in the real estate market over the past few years and what we are seeing in the third quarter of 2023 confirms that this market is not slowing down. While major economies around the world are still struggling with the post-pandemic slowdown, the UAE is on track to set records in key sectors such as tourism, real estate and energy. Given the interest that Dubai is attracting in''Currently, it is more important than ever for us to showcase Dubai's best real estate, emphasizing authenticity and affordability, which are the core tenets of Bayut. We have seen continuous growth in traffic on the platform and inventory throughout the year, which is further supported by the latest transaction data from DLD. To date, our industry has shown resilience in a dynamic and rapidly changing world. At Bayut, we closely monitor market changes and encourage real estate consumers to use our various tools, including Dubai Transactions, to better understand the market, make more educated decisions and provide transparency to access stunning options. "

The most popular neighborhoods for''shopping for affordable apartments and villas:

• Jumeirah Village Circle (JVC)
• Dubai Silicon Oasis
• DAMAC Hills 2
• Al Furjan

The most popular areas to buy luxury real estate:

• Dubai Marina
• Business Bay
• Arabian Ranches
• Dubai Hills Estate

Transaction prices in the most popular areas of affordable apartments increased by 9-15%, with the exception of Dubai Silicon Oasis, where average transaction prices decreased by around 2%. In the case of affordable villas, the trend is similar, with average transaction prices increasing by 10-17% in the most popular neighborhoods. Separately, transaction prices fell by 2% and 9% in The Springs and Dubailand respectively.

When it comes to luxury neighborhoods, most are experiencing steady price growth''less than 5%, with the exception of Palm Jumeirah, where average transaction prices continue to increase by 14-15%.

According to the Dubai Land Department, there were 30,891 residential real estate transactions (completed and under construction) worth AED 96.6 billion in the third quarter of 2023.

When it comes to yields based on projected rental income from apartments, some areas including DIP, Liwan and Remraam offer yields of up to 10%, which is an attractive proposition for investors. In the case of luxury apartments, areas such as Al Barari and Jumeirah Golf Estates offer impressive yields of up to 8%, well above most global markets. Bayut's trends in villa village yields also present a positive picture.

As noted by Bayut, advertised rental prices in popular neighborhoods have also increased, with rents for affordable apartments in popular neighborhoods up 11%. The rental value of luxury apartments also''is seeing an upward trend of up to 13%. Rental prices for affordable villas increased by 3-16%, while luxury villa rentals rose by 21%.

Those looking for affordable housing focused on Jumeirah Village Circle (JVC) and Al Nahda for apartments. Those looking for villas mainly considered DAMAC Hills 2 and Mirdif. In the luxury segment, Dubai Marina and Business Bay remain popular options for apartment rentals, while Dubai Hills Estate and Arabian Ranches 3 were in demand for upscale villas.

With regards to transactional rental prices, in most cases, increases in affordable neighborhoods for villas and apartments were fairly moderate and did not exceed 5%, with the exception of villas in JVC where average transactional prices increased by over 8%. As for luxury apartments, rental prices have remained stable. What''As for luxury villas, rents rose by 7-8% in areas such as Dubai Hills Estate and DAMAC Hills.

Although historical trends usually indicate a lull in real estate market activity during the summer months due to the departure of many residents abroad, activity in 2023 remained high even during the hottest months of July and August. Transaction volume in the last three months alone approached AED 100 billion, which was previously unprecedented even for the entire year. While double-digit growth in rental transactions has become rarer, demand for rental units continues to rise, especially as more people move to the UAE in search of better career opportunities and a secure lifestyle.