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Prices for properties in Dubai experience a marginal slide

The average prices for buying and selling property in the Dubai real estate market have shown modest decreases, according to the H2 2018 real estate market report by

Sales highlights:

● Dubai Marina remains on the top position for apartment sales with Marina Diamonds being the most searched building in the area. Arabian Ranches is the most popular for

villa sales with Al Reem being the most searched sub-community.

● For apartments, the most significant price changes is a 12.9% decrease for studios in International City from AED 310k in H1 to AED 270k now.

● For villas, there were expected changes of 12.1% decrease for 5-beds in DAMAC Hills (Akoya by DAMAC) from AED 5.17M to AED 4.54M.

Rental highlights:

● Al Nahda takes the top spot for the most popular area for apartment rentals, pushing Dubai Marina, our usual winner marginally into second place, with Al Nahda 2 receiving

the highest number of searches within the area. Mirdif takes the first rank for villa rentals with Uptown Mirdif being the most searched sub-community.

● The most noticeable decreases for apartment rentals are for studios in Bur Dubai where prices fell by a substantial 13% and average at AED 40k from AED 46k. Prices for studios

in Discovery Gardens decreased by 12.5% where prices are now AED 35k from AED 40k.

● For villa rentals, the most noticeable price change is a 9.5% decrease in 4-bedroom units in Jumeirah from AED 210k to AED 190k.

Apartment Sales

Prices for apartments in Dubai Marina remain more or less stable compared to those seen in H1 and Q3, with the average prices standing at AED 850k for studios, AED 1.19M for 1-bed and AED 1.95M for 2-beds. All other areas show a 2 to 9% decline in average sales prices with the exception of Downtown Dubai where prices remain unchanged at AED 1.03M for studios, 1.6M for 1-beds and 2.95M for 2-bed apartments.

Apartment Rentals

This time, Al Nahda takes the crown for the most popular area for apartment rentals in Dubai, with 1-bedroom apartments showing the steepest decline of 10.4% with prices averaging at AED 34k, down from AED 48k in H1 of 2018. 2-bedroom apartments averaged at AED 58k, down from AED 60k, and studios at AED 35k, down from AED 38k.

The favored Dubai Marina came in at a close second after a tough competition with Al Nahda and the change in position can possibly be credited to the increased interest for investment in the area, after the introduction of the new laws, which have encouraged people to consider buying and living in Dubai Marina rather than leasing. This is further evidenced by the fact that sales searches in Dubai Marina have gone up and it was, and still is number 1 when it comes to investing in an apartment in H2 2018.

Average prices for studios in the other popular areas such as International City, Dubai Silicon Oasis and Dubai Sports City decreased by 10%.

Most other decreases are between 3 to 9%, with prices for studios in Jumeirah Village Circle (JVC) and Deira remaining more or less stable at AED 39k and AED 32k respectively.

Villa Sales

The average prices for the villas in Arabian Ranches have decreased by 6 to 7%, with prices going down from AED 3.05M in H1 to AED 2.8M for 3-beds in H2 2018, 4-bedroom villas went down from AED 4.1 to AED 3.8M and 5-bedroom villas went down from AED 5.2 to AED 4.79M.

The next noticeable price changes are for the 4 and 5-bedroom villas in Dubailand, where the average sales price have fallen from AED 2.45M to AED 2.12M, and AED 2.28M from AED 3.5M respectively. The price changes in Dubailand can be attributed to the delivery of newly finished off-plan projects.

The 3 and 4-bed villas in the Springs remain unchanged at AED 2.4M and 2.9M, respectively. 5-bed villas in JVC also remain unchanged at AED 4M. All other increases and decreases arewithin 5%.

Prices for 5-bed villas in Palm Jumeirah also remain stable at AED 14.5M. However, for those looking for fully-furnished or luxury villas, will find them at a higher price starting from AED 24M in the Signature Villas and The Crescent sub-communities of Palm Jumeirah.

All other increases and decreases are within 5%.

Villa Rentals

The rental cost for properties in Mirdif is largely unchanged, with an exception of 3-bedroom units, where the prices increased by 4.3% and now average at AED 120k from AED 115k in H1.

The steepest fall in rents can be seen for 3 and 4-bedroom villas in Jumeirah, where rents went down to AED 165k from AED 180k and AED 190k from AED 210k, respectively.

Average rents for villas in Dubailand remain unchanged from H1 for 2018 at AED 155, 165k and 160k.

Most popular villa sub-communities

Al Reem is the most popular sub-community in Arabian Ranches for buyers, accounting for more than 42% of searches conducted within the area, while Living Legends has the most searches overall for villa rentals in Dubailand at 48% . Signature Villas (47.7%) is the next most popular sub-community for villa sales in Palm Jumeirah.

For villa rentals, Uptown Mirdif is the most popular choice gathering the lion’s share of 79.5% of total searches conducted in Mirdif. Other popular villa communities for leasing include Garden Homes in Palm Jumeirah with 65.5% of the total searches done within the area, Legacy in Jumeirah Park which raked in 59.3% of the total searches in the area, and Jumeirah 1 in Jumeirah brought in over 50.7% of the total searches in the locality.

Popular off-plan projects

Mohammed Bin Rashid City, Akoya Oxygen, JVC, Business Bay and JLT received the most attention by potential investors and are the most popular locations for off-plan investments in Dubai in 2018.

Within MBR City, the District 7 project is the most searched for at 34% and in Akoya Oxygen the top spot went to Sahara Villas, which accounted for 25.6% of the searches.

Forecast for 2019

Haider Ali Khan, CEO of Bayut, said: “Dubai has followed a similar trend as seen in our H1 and Q3 Market Report, with property prices falling across its most popular areas. This year has definitely been a big one for the Dubai property market due to announcements of the new retirement visa along with the 10-year residency visa and 100% foreign company ownership. The new reforms are expected to boost the sales of properties in 2019 and heralds the possibility of prices stabilizing across the emirate which will further strengthen the position of Dubai as one of the leading emirates to invest in.”

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