dubizzle Property, the UAE’s biggest and most visited online property platform, has revealed insights into Dubai’s most popular areas based on interest from property seekers, comparing prices from January to August 2019.
Most popular areas for rent (apartments and villas):
According to the data, three of the most popular areas for rental apartments include Dubai Marina, Dubai Land and Jumeirah Lake Towers (JLT).
The expat and investor favorite, Dubai Marina, saw an average decrease of 3% in rental prices for 1BR (bedroom), 2BR and 3BR apartments, bringing the average annual price to AED 70K, AED 100K and AED 159K respectively. JLT witnessed a similar trend, with an average decrease of 4%. Prices for 1BR apartments in the area experienced the biggest decrease of 9%, averaging AED 60K, whereas 2BR and 3BR units did not witness a significant change, with a small fluctuation of -1% bringing the average cost to AED 85K and AED 109K respectively.
Dubai Land, which includes Sports City, Motor City, Remraam and Dubai Production City (IMPZ), was favored by those interested in property for rent, contrary to last year’s report. Over the past 8 months, prices decreased by an average of 14%, bringing 1BR, 2BR and 3BR prices down to AED 41K, AED 58K and AED 87K respectively.
When looking at the most popular areas for villas for rent, Dubai Land received increased interest from property seekers. Price trends reveal that the average annual rent for 2BR, 3BR and 4BR villas in the area is AED 85K, AED 110K and AED 140K respectively.
Mirdif and Jumeirah Village Circle were also among the most popular villa communities, however, these have not shown a significant fluctuation in prices in comparison with Dubai Land. Mirdif prices have remained the same throughout 2019 so far, averaging at AED 75K for 2BR villas, AED 100K for 3BR and AED 110K for 4BR. Jumeirah Village Circle 3BR and 4BR villas are now priced at an average of AED 100K and AED 115K respectively.
Most popular areas for sale (apartments and villas):
When looking at user interest in property for sale, 1BR, 2BR and 3BR apartments in Dubai Marina and Dubai Land were firm favorites. Prices in these two areas softened by an average of 9% and 10% respectively from January to August 2019.
Downtown Dubai was among the top five most desired communities for 1BR and 2BR apartments, with prices now averaging at AED 1.4million and AED 2.4million respectively. JLT and Jumeirah Beach Residences (JBR) received increased interest for larger 2BR and 3BR apartments, reinforcing the popularity of prime areas among investors as they become more accessible.
While the data reflects a clear interest in apartments for sale in prime locations, demand for villas was predominantly for newer areas including Dubai Land (average decrease of 11% in prices from January to August 2019) and Jumeirah Village Circle (average decrease of 17%).
Home buyers, however, were interested in 2BR, 3BR, and 4BR units in the established Emirates Living communities (The Springs, The Meadows, The Lakes and Emirates Hills) with prices only declining by an average of 3% over the past eight months. The average price now stands at AED 1.4 million for 2BR, AED 2.4million for 3BR and AED 4.4 for 4BR villas.
“The rental and sale price fluctuations really reflect the correction of the property market. With supply levels in newer areas going up, and communities in prime locations becoming more affordable, tenants and home buyers are increasingly spoilt for choice. This trend is likely to continue for the next 12-18 months, as supply levels continue to increase with 124,000* new units expected to enter the market by 2021. It will take some time for existing and new supply to be absorbed completely. The upcoming EXPO 2020 and positive government initiatives will contribute to the stabilization of the market in the foreseeable future,” commented Matthew Gregory, Director, dubizzle Property.