Third quarter 2023: Dubai real estate sales and rentals report on 'Bayut' website

Biot, the leading real estate portal in the United Arab Emirates, has released the Dubai real estate market report for the third quarter of 2023, which reveals the most popular areas in the Emirates real estate sector. This follows the launch of BayutGPT (BayutGPT), the world's first artificial intelligence-based virtual real estate search assistant, which provides real estate researchers with an important data repository and is designed to facilitate more informed decision-making and deeper market insights.

The report, based on search trends on the platform, showed that real estate prices in Dubai continue to rise, creating an ideal environment for property sellers and owners. The steady price growth is in line with observed trends over the past 18 months, where increased demand and more new residents have led to unrivaled growth.

Data from the Bayut website shows that sale prices of apartments and villas in prime areas of Dubai rose by 2-12% in the third quarter of 2023. As for mid-priced apartments and villas, the most popular areas among buyers and investors are Jumeirah Village Circle (JVC), Dubai Silicon Oasis, Damac Hills 2 and Al Farjan. At the same time, real estate researchers prefer luxury neighborhoods such as Dubai Marina, Commercial Bay, Arabian Ranches and Dubai Hills Estate in the third quarter of 2023. Sales prices in mid-price neighborhoods rose by 9-15%, with the exception of Dubai Silicon Oasis, where average transaction prices fell by 2%. As for mid-priced villas, there is a similar trend here, where average sale prices have increased by 10-17% in the most sought-after areas. Notable exceptions were seen in the Al Jana and Dubai Land neighborhoods, where transaction prices fell by 2% and 9% respectively. As for luxury apartments, most of them have shown stable price growth of less than 5%, except for Palm Jumeirah where average transaction prices continue to rise by 14-15%.

According to the Department of Land and Real Estate in Dubai, 30,981 residential real estate transactions (completed and under construction) worth AED 96.9 billion were completed in the third quarter of 2023 alone.

In terms of return on investment and based on the expected rental yield of apartments, certain areas including Dubai Investment Complex, Lhawan and Ramram offer yields of up to 10%, which is very attractive to potential investors. In terms of luxury apartments, areas such as Al Barari and Jumeirah Golf Estates offer amazing returns of up to 8%, significantly higher than most global markets.

The report also notes positive trends in investment returns in villa communities. For example, Jumeirah Village Circle has an average return on investment of over 9% on rental villas, which is an extremely attractive proposition for potential investors. Neighborhoods such as World Island, Town Square offer investment returns in excess of 7%. As far as luxury villas are concerned, Al Barari is a successful choice for investors as the return on investment in it exceeds 8%. The uniqueness of these villas and the limited supply on the market have helped to create demand in the area.

When it comes to the rental property market in Dubai, the Biot report notes that advertised rents in the most sought-after areas also increased, with rents for affordable apartments in the most popular areas rising by up to 11%, while rents for luxury apartments rose by 13%. Areas with mid-priced villas also experienced price increases of 3-16%, while rents for luxury villas rose by 21%. Real estate researchers focused on areas such as Jumeirah Village Circle (JVC) and Nahda for mid-priced residential rentals.

With regards to rental rates, most of the increases seen in the mid-price neighborhoods for villas and apartments were moderate at around 5%, except for villas in Jumeirah Village Circle, where average rental prices increased by more than 8%. As for luxury apartments, rental rates remained relatively stable. As for luxury villas, rents rose by 7-8% in areas such as Dubai Hills Estate and Damac Hills.

At the same time, general price trends point to a less active season in the real estate market during the summer months when many residents travel out of the country. However, market activity remained strong in 2023 even during the hottest months, July and August. The volume of transactions in the last three months alone is approaching AED 100 billion, a record high even for the whole year.

The report also notes the continued growth in demand for rental properties, especially in light of more people moving to the UAE in search of better jobs and a safer lifestyle. Commenting, Biot CEO and Dubizzle Group Head of Middle East and North Africa Haider Ali Khan said: "Trends in the real estate market remain very positive in the UAE as a whole and particularly in Dubai, and what we are seeing in the third quarter of 2023 confirms that this market shows no signs of slowing down, while leading economic sectors around the world continue to suffer from the post-pandemic economic slowdown." He added: "The UAE is on track to break growth records in key sectors including tourism, real estate and energy. With the level of interest that Dubai is now generating, it has become even more important for us to showcase the best properties in Dubai, drawing attention to the veracity of real estate advertisements and the actual availability of properties, which are the foundation of Biot's work. "

Hyder Ali Khan said, "We continue to see a steady increase in the number of website visits and real estate listings during this year, as evidenced by the latest transaction data from the Land and Real Estate Department in Dubai. Our sector shows its flexibility in a dynamic and rapidly changing world. At Biot, we keep an eye on changing market conditions and also encourage real estate researchers to use our various tools and services, including deals in Dubai, which are sure to help you better understand the market and make smarter, more informed decisions with transparency and reliability to take advantage of the great opportunities available to everyone. "