Dubai Annual Market Report 2019: Favourable prices continue attracting buyers with total volume of real estate transactions increasing in 2019

As we welcome a new year that promises to be full of exciting announcements for the Dubai real estate market with the launch of Expo 2020, it’s time to look back on the months that went by and evaluate how the annual property prices in Dubai evolved in 2019 compared to 2018. This year, we have seen an increased number of real estate transactions in the Dubai property market, with both the off-plan market and the secondary segment receiving a healthy share of interest from buyers. Tenants have also had been able to enjoy better property prices in Dubai with landlords offering attractive incentives, including chiller-free properties, longer tenancy contracts extending up to 15 months, commission-free transactions and more. Annual property prices in Dubai across the board have also become more renter-friendly over the course of 2019. 

Based on the data released by the Dubai Land Department up to November 2019 close to 15,000 sales transactions were recorded in 2019 for the primary segment in the real estate market while the number of transactions in the secondary market came close to 14,000. While the numbers are fairly close, there is a clear leaning towards the primary, off-plan segment in the Dubai real estate market, which is quite different from the trend seen in 2018 where the secondary market received a bigger share of sales transactions. 

The inventory of properties for both rent and sale in the Dubai property market has also gone up in 2019, with many exciting projects completing highly anticipated phases of handover including District 1, Dubai Hills Estate and DAMAC Hills (Akoya by DAMAC). Notable real estate developers have also announced new projects, attracting investor interest both locally and internationally. Notable among these are the Madinat Jumeirah Living by Dubai Holding, The Valley by Emaar and Port de La Mer by Meraas. 

Now let’s take a look at the Dubai annual market report 2019 for the most popular areas for buying and renting apartments and villas in 2019 vs 2018.

For an accurate representation of Dubai property price changes, the report compares the average price per square foot for an area when it comes to properties for sale. Kindly note that these prices are subject to change based on multiple factors including the list of amenities available, the developer involved in the project, location and other key factors. For instance, the overall price per square foot for villas in Palm Jumeirah averages at just over AED 2,000, however, if you are looking at high-end properties such as XXII Carat Villas, the price per square foot will be over AED 4,000.  

PROPERTY TRANSACTIONS ACCORDING TO DLD IN THE MOST SEARCHED NEIGHBOURHOODS OF DUBAI AS PER DATA ON BAYUT

The latest data released by the Dubai Land Department shows that the volume of real estate transactions in the city has gone up considerably in 2019 compared to 2018. The most popular areas in Dubai as per search trends on Bayut have mostly seen transactions increase in 2019. Consistently in-demand locations such as Dubai Marina, Downtown Dubai and Palm Jumeirah have attracted more buyers in the last year, thanks to a combination of favourable prices, attractive projects and transparent regulations. 

As per the REST app of the Dubai Land Department, there were over 40,000 property transactions in the sales sector amounting to a whopping value of AED 81.03 B! This is a commendable increase from the total value of transactions seen in 2018, which amounted to AED 73.08 B. This amount plays an important role in the overall GDP of the emirate and indicates that buyers and investors are keen to capitalise on the competitive market to lock in on attractive prices. 

With more stringent regulations being put into place to regulate the off-plan segment and Dubai taking the lead when it comes to offering transparent processes for secondary sales with better early settlement rates on mortgages, there is greater security for all stakeholders. 

Take a look at how some of the key areas in the Dubai annual market report 2019. 

DUBAI MARINA PREVAILS AS THE FAVOURITE FOR BUYING APARTMENTS IN DUBAI PROPERTY MARKET 2019

DUBAI PROPERTY PRICES FOR BUYING FLATS IN DUBAI

Staying in line with the trend seen throughout 2019, Dubai Marina has been one of the most searched for areas to buy apartments in Dubai. When it comes to the price for buying apartments in Dubai Marina, the data is consistent with the prevailing market conditions with the overall average price per square foot declining by 11.8% from AED 1,502 in 2018 to AED 1,326 in 2019. A closer look at Bayut’s data on property prices in Dubai reveals that the average cost for apartments for sale in Dubai Marina has experienced favourable drops for buyers and investors, with studios going from an average of AED 850k in 2018 to AED 718k now. Sales prices for 1-bedroom apartments in Dubai Marina also went down from AED 1.29M and now average at AED 1.1M. Meanwhile, 2-bedroom flats in Dubai Marina have seen the average asking price for apartment sales dip from AED 2.1M to AED 1.78M. These prices for the Dubai annual market report 2019 have contributed to Marina’s sustained popularity and resulted in an increased number of transactions in the area as per the data released by the Dubai Land Department, which is detailed above. 

The heart of the city, Downtown Dubai is the second most sought-after area in the Dubai property market for buying ready apartments. Potential investors who are keen on owning an apartment near the iconic Burj Khalifa will be paying slightly less this time around, as the average price per square foot for Downtown Dubai apartments decreased by 9.5% from AED 1,988 in 2018 to AED 1,799 in 2019. When analysing property prices for individual units, the average cost for Downtown Dubai studios has gone from AED 1M to AED 925k in 2019. When it comes to 1-bedroom apartments in Downtown Dubai, investors and homeowners will pay an average of AED 1.45M now as compared to AED 1.6M in 2018. The average asking price for 2-bedroom units now averages at AED 2.59M going down from the price of AED 2.9M, as seen in 2018.

While most areas experienced decreases ranging from 8% to 16%, Business Bay and JVC have remained the most stable, reporting marginal decreases of under 5%. Both areas have remained popular with a mix of ready and off-plan units offering buyers a healthy portfolio of properties to choose from. 

Affordable neighbourhoods like International City, Dubai Silicon Oasis and Dubai Sports City also received great interest from investors and homeowners looking to buy flats in the Dubai real estate market. 

Other popular areas in the Dubai real estate market for buying apartments include Palm Jumeirah, Jumeirah Lake Towers (JLT), and Jumeirah Beach Residence (JBR); all of which are buzzing commercial and recreational hubs that feature top-notch residential buildings with high-end apartments.

Overall, the property prices when it comes to investing in Dubai apartments in these areas have gone down between 9% – 15%. The only significant change is a 16.6% decrease in the average sales price per square foot for apartments in Palm Jumeirah from AED 1,671 to AED 1,394. Being an area with ongoing off-plan deliveries, landowners in Palm Jumeirah have strategically kept prices competitive in the ready segment to cater to more potential buyers. 

MARINA DIAMONDS IS THE MOST POPULAR BUILDING TO BUY FLATS IN DUBAI MARINA

Apart from analysing the property prices in Dubai, Bayut’s 2019 market report also presents data on the most searched for areas to buy apartments in the top area.

As per our analysis of sales trends in Dubai for apartments, Marina Diamonds is the most popular building to buy apartments in Dubai Marina. The lowest price for buying a studio in Marina Diamonds is AED 420k, while 1-bed units will set you back by AED 510k and AED 749k is the average asking price for 2 BHK flats. Other popular buildings include Marina Gate, Horizon Tower, Marina Pinnacle and The Torch. 

INTERNATIONAL CITY HAS THE BEST RENTAL YIELD IN DUBAI FOR APARTMENTS

Investors looking for apartments with the best ROI in Dubai should consider the community of International City. Throughout 2019, International City has been presenting investors with the best rental returns in Dubai. According to Bayut’s end of year property market analysis for 2019, International City delivers rental returns of 9.4%. Incidentally, this area also offers some of the cheapest property in Dubai for investors and buyers. Dubai Sports City and JLT also offer a good ROI at the 8% mark for buying flats in Dubai.

Please note that these figures are the overall ROI for an area, and can vary depending on the sub-community and property type.

AL NAHDA IS THE PREFERRED CHOICE FOR RENTING FLATS IN DUBAI

RENTAL PRICES FOR FLATS IN DUBAI

Boasting an abundance of amenities and affordable prices, Al Nahda Dubai is the most sought-after neighbourhood to rent apartments in Dubai. In 2019, rents for flats in Al Nahda remained affordable throughout as prices experienced declines in line with overall market expectations. The rents for studios in Al Nahda experienced a decline of 16.7%, averaging at AED 30k compared to AED 36k seen in 2018. 1-bedroom flats in the area have also seen a decline of 13.3% from AED 45k previously to AED 39k now. The larger 2-bedroom flats for rent in Al Nahda experienced a 15% decrease with average yearly rents reducing from AED 60k previously to AED 50k now.

Coming in close at the second position for apartment rentals in Dubai is Dubai Marina. Rents for Dubai Marina apartments also encountered decreases across all units. The only significant change is a 13.8% decrease for studios in Dubai Marina where the rents went from AED 58k in 2018 to AED 50k in 2019. As for the 1 and 2-bed units in the area, rents declined by approximately 8% and stand at an average of AED 78k and AED 115k, respectively.

JVC, Bur Dubai, Deira, International City, Dubai Silicon Oasis and Dubai Sports City are also popular for rental flats in Dubai. A majority of the Dubai real estate prices in these areas for rent have seen declines between 6% – 10%. The most notable amongst these is for 2-bedroom flats in Deira where yearly rents went down by 16.7% from AED 90k to AED 75k. This is followed by a decline for studio units in Dubai Sports City, which have gone down by 15.8% from AED 38k to AED 32k.

Rounding up the list of top 10 areas for apartment rentals in Dubai are JLT and Downtown Dubai, registering a continued interest in high-end apartment rentals in Dubai. The decreases in rental costs within these areas have been between 7% – 13%.

AL NAHDA 2 IS THE POPULAR SUB-COMMUNITY TO RENT IN AL NAHDA

Tenants looking to capitalise on the affordability of the area should consider Al Nahda 2. It emerged as the most popular sub-community within Al Nahda. The lowest rents potential tenants can expect for the apartments for rent in Al Nahda 2 is AED 20k, according to the current listings on Bayut.

Now let’s take a look at the property prices in Dubai for buying villas.

PALM JUMEIRAH IS THE MOST POPULAR NEIGHBOURHOOD WITH VILLAS FOR SALE IN DUBAI

PROPERTY PRICES IN DUBAI FOR BUYING VILLAS

Palm Jumeirah surfaced as the top area for buying villas in Dubai. The luxury destination is known for its brilliant waterfront views and state-of-the-art amenities. The average price per square foot here has also seen a minor decrease of 9.3% in 2019, averaging at AED 2,164, down from AED 2,358 in 2018. Although the price per square foot has dropped, the overall average cost of Palm Jumeirah villas for sale remains relatively unchanged at AED 6.2M for 3-beds, AED 9.5M for 4-beds and AED 18M for 5-bedroom units.

The second-most popular area with villas for sale in Dubai is Arabian Ranches. The average price per square foot here has witnessed a decline of 6.6% from AED 981 previously to AED 916 now. Buyers can now expect the cost of 3-bedroom villas in Arabian Ranches to average at AED 2.35M, going down from AED 2.97M in 2018. The cost for purchasing 4-bedroom Arabian Ranches villas now average at AED 3.6M, dropping slightly from the AED 3.9M average of 2018. As for the 5-bedroom units, the average sales cost had gone from AED 4.9M in 2018 to AED 4.5M now.

Other popular areas with villas for sale in Dubai include Dubailand, The Villa, DAMAC Hills (Akoya by DAMAC), The Springs, Dubai Hills Estate, JVC, The Meadows and Mudon. On average, property price trends in Dubai for buying villas in these areas are seeing decreases within 5% – 10% for the average price per square foot. The only neighbourhood that saw a notable decrease is The Villa, where the average sales price per square foot declined by 11.9% going from AED 792 to AED 698.

POPULAR AREAS TO BUY HOUSES IN PALM JUMEIRAH

Signature Villas in Palm Jumeirah is the most popular sub-community for buying houses in the area. As per Bayut’s latest listings, AED 9M is the lowest price investors and potential homeowners can expect to pay to purchase one of the Signature Villas. Other areas that were highly searched for on Palm Jumeirah to buy villas include Garden Homes, Canal Cove, XXII Carat and The Crescent.

JVC, THE SPRINGS AND MUDON HAVE THE HIGHEST ROI IN DUBAI FOR VILLAS

According to property price trends in Dubai, JVC offers the best average rental return for 2019 at 6.5% for those looking to purchase villas in Dubai. This is followed by The Springs and Mudon both of which offer rental returns at the 6% mark. Another area from the Dubai property market that has a good return on buy-to-let villas is Arabian Ranches, which offers an ROI of 5.9%.

MIRDIF PRESERVES ITS POSITION ON TOP FOR RENTING VILLAS IN DUBAI

TOP 10 AREAS FOR VILLA RENTALS IN DUBAI ANNUAL MARKET REPORT 2019

The family-oriented villa community of Mirdif retains its position as the most popular area with rental villas in Dubai. Tenants looking at villas for rent in Mirdif will be happy to know that the rents on average have become more favourable in 2019. The 3-bedroom villas in Mirdif experienced a decline of 12% and now average at AED 105k yearly in 2019, from AED 120k previously. When it comes to the 4-bedroom and 5-bedroom Mirdif villas for rent, prices dropped at the 8% mark and now average at AED 120k and 130k respectively.

Another popular area to rent villas in Dubai is the waterfront community of Jumeirah, where prices dipped in line with trends across the market. Rental prices for 5-bedroom villas are averaging at AED 220k now, down by 12% from the AED 250k average seen previously in 2018. This was followed by an 11% drop in the average rents for 3-bedroom houses in Jumeirah, with prices dropping to AED 155k in 2019 compared to the AED 175k average in 2018. Finally, 4-bedroom villas declined by 10% and now stand at an average of AED 180k.

The other popular areas for renting villas in Dubai include Al Barsha, Arabian Ranches, The Springs, Umm Suqeim, DAMAC Hills (Akoya by DAMAC), The Villa, JVC and Reem. The only noticeable decrease in prices is for 3 and 5-bedroom villas in DAMAC Hills, with decreases of nearly 14% and 15% respectively. This is, however, a recently handed over neighbourhood, which will need some time to stabilise before prices bottom out. 

UPTOWN MIRDIF IS THE MOST POPULAR COMMUNITY TO RENT VILLAS IN MIRDIF 

Uptown Mirdif has attracted the most amount of interest from tenants in looking to rent houses in Mirdif in 2019. This area is known for its family-friendly suburban lifestyle with large villa units. The property prices in Dubai for renting villas in Uptown Mirdif, according to Bayut’s current listings is AED 55k. Shorooq Mirdif is another popular community to rent villas in Mirdif. Property prices in Dubai for renting in Shorooq Mirdif go for as low as AED 74k per year.

OFF-PLAN PROJECTS IN THE DUBAI REAL ESTATE MARKET

Top off-plan projects in Dubai for 2019

The real estate trends in Dubai for 2019 for the off-plan market echo the trend seen in our previous reports.

Areas close to the Expo site, which include Dubai South and Akoya Oxygen, have garnered keen interest from investors and potential homeowners. Within these neighbourhoods, EMAAR South in Dubai South and Amargo in Akoya Oxygen are attractive options to consider as you can find both villas and apartments.

Investors whose interest leans specifically towards apartments should consider off-plan projects such as Se7en City in JLT, Roxana Residences in JVC, Burj Royale in Downtown Dubai, Sobha Hartland in MBR City and Millennium Binghatti Residences in Business Bay.

For those exclusively searching for off-plan villas in Dubai, the most popular sub-communities are Villanova in Dubailand and Golf Place in Dubai Hills Estate.

For buying townhouses in Dubai, Sama Townhouses in Town Square is a popular choice amongst investors.

Please note that some of these areas feature a mix of ready and off-plan units since handovers are completed in phases. 

Haider Ali Khan, CEO of Bayut, commented on the performance on the Dubai real estate market: 

“2019 has been a year where we welcomed a lot of positive resolutions to bolster interest in the Dubai property market. We are seeing the outcomes of these initiatives with transactions increasing consistently year on year. At Bayut, we have also seen the direct impact of the increased interest towards property investments in the region. The number of visitors to the website has consistently grown throughout 2019 and we recorded our highest traffic of over 3 Million sessions in October, showing that there is a large captive audience wanting to transact as buyers, sellers or tenants in the UAE real estate industry, with Dubai as the most sought after emirate.

We can expect this trend to continue in 2020 as well. It is certainly going to be another year of many firsts for Dubai. We will be seeing a lot of new initiatives before Expo 2020 launches in October. Construction will be completed for a lot of projects which have been developed specifically for the event, whether it’s for residential, commercial or tourism purposes. This will not only increase inventory, but it will also provide tenants and buyers with exciting alternatives that they can explore.”

“This is also the year where we will see the market mature as a result of key regulations introduced in 2019, including reduced fees for early settlement of mortgages and the Higher Committee for Real Estate Planning. It will be interesting to see how property prices will evolve in the face of these new conditions. Overall, we can be optimistic about sustained interest in the Dubai property market. The world is coming to Dubai in 2020, and conditions are ideal for increased transactions for all stakeholders. Healthy ROIs will invite more investors, and innovative payment solutions will help tenants to consider transitioning into homeowners!”

That concludes this report on the property prices in Dubai. Keep an eye out on the Market Trends section of our blog for the in-depth market reports on Abu Dhabi, Sharjah and Ajman price trends.

Disclaimer: The above Dubai Annual Market Report 2019 is based on prices advertised by real estate agencies on behalf of their clients on Bayut.com, and not representative of actual real estate transactions conducted in Dubai.