Bayut & dubizzle’s Dubai Annual Market report for properties for sale in 2020
- Top Neighbourhoods in Dubai
- Affordable Apartment Sales
- Luxury Apartment Sales
- Affordable Villa Sales
- Luxury Villa Sales
- Top Off-Plan Projects
The Dubai real estate sector has seen several interesting developments in 2020. Whilst the COVID-19 pandemic had an expected impact on the property sector, we also saw the industry successfully adapt to the situation with the introduction of virtual solutions.
The latter half of 2020 was also characterised by several announcements that ensured sustained interest in the Dubai real estate market from both local and overseas investors. These announcements included the launch of the new retirement visa scheme and amendments to the UAE’s personal/family laws. The Dubai real estate sector has also diversified further by introducing fractional title deeds and regulating timeshare properties, allowing smaller investors to enter the market as well.
Bayut & dubizzle’s combined annual sales report analyses the evolution of Dubai property prices in 2020 to learn more about how these conditions have impacted the performance of the residential property sector.
Our data experts have compared the real estate prices in Dubai from 2020 on Bayut & dubizzle (excluding room share) to those from 2019, to identify consumer trends in Dubai’s real estate market.
In 2020, Dubai property prices have remained favourable to buyers and investors with most popular areas seeing moderate declines under 10%, which is significantly lower than the initial projections made by international analysts in the early days of the pandemic. In particular, sales prices of villa properties in Dubai have shown greater signs of stability, reflecting an increased demand for larger living spaces. This is not surprising, considering how the perception of a house has changed in the aftermath of social distancing.
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Buyers and investors interested in the affordable segment of the Dubai property market have focused their attention towards suburban areas, such as Jumeirah Village Circle, Dubailand and DAMAC Hills (Akoya by DAMAC). More reasonably-priced neighbourhoods such as Jumeirah Lake Towers, Business Bay and The Springs have also continued to generate interest.
On the other hand, high-net-worth investors and homebuyers have shown a strong preference for historically-popular areas such as Dubai Marina, Downtown Dubai, Arabian Ranches and Palm Jumeirah, when it comes to buying luxury apartments and villas in Dubai.
For an accurate representation of Dubai property prices, our annual sales market report compares the average price-per-square-foot for an area. Please note that these prices are subject to change based on multiple factors including amenities available, the developer involved in the project, location and other key factors.
We have also further segregated the popular areas for buying apartments and villas into ‘Affordable’ and ‘Luxury’ to offer a more tailored view of the Dubai real estate market in 2020.
Top Neighbourhoods in Dubai According to Trends on Bayut & dubizzle
Our analysis of search trends on Bayut & dubizzle indicates that buyers and investors have paid most attention to integrated community developments such as Dubai Marina, Jumeirah Village Circle and Palm Jumeirah in the Dubai real estate market in 2020.
However, up-and-coming developments such as Dubailand, Dubai Hills Estate and DAMAC Hills (Akoya by DAMAC) have also firmly established themselves as popular choices for consumers in 2020.
Other historically-popular areas such as Arabian Ranches, Downtown Dubai and Business Bay have also continued to hold the interest of buyers throughout the year; the latter two areas offer a mix of off-plan and ready projects to maintain their appeal to consumers.
According to the data released by the Dubai Land Department, there were 20,716 residential transactions recorded in the emirate in 2020.
An interesting trend observed was that ready and off-plan transactions went head-to-head in 2020 with the latter emerging the winner, accounting for 52% of the total residential transactions recorded in Dubai. This could be attributed to ready property owners holding on to their units in the first half of 2020 to evaluate the market situation during the COVID-19 pandemic.
Next, our annual market report will analyse the evolution of Dubai property prices for buying apartments and villas in popular neighbourhoods throughout the city.
Jumeirah Village Circle ranks first for buying affordable apartments
Property prices in Dubai to buy affordable flats
POPULAR AREAS | ROI | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019 | STUDIO | 1-BED | 2-BED |
|---|---|---|---|---|---|
| Jumeirah Village Circle (JVC) | ROI 6.4% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| STUDIO
| 1-BED
| 2-BED
|
| Jumeirah Lake Towers (JLT) | ROI 7.4% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| STUDIO
| 1-BED
| 2-BED
|
| Dubai Silicon Oasis | ROI 7.8% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| STUDIO
| 1-BED
| 2-BED
|
| Business Bay | ROI 5.9% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| STUDIO
| 1-BED
| 2-BED
|
| International City | ROI 8.5% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| STUDIO
| 1-BED
| 2-BED
|
Jumeirah Village Circle (JVC) remains the popular area of choice for buyers and investors looking for reasonably-priced apartments in family-friendly communities, as per our Dubai real estate market analysis for 2020. The average sale-price-per-square-foot for apartments has also declined by 6.1% in JVC, decreasing from AED 878 to AED 825.
The apartments for sale in JVC have also seen a moderate decrease in asking prices in 2020, going from AED 436k to AED 394k for studio flats. The 1-bed apartments in JVC have also reduced from AED 709k to AED 628k, while 2-bed flats for sale have seen a slight change from AED 1.09M to AED 1M.
Jumeirah Lake Towers (JLT) is also among the most popular areas for buyers and investors keen on affordable properties for sale, thanks to its connectivity, public transport links and abundant amenities. The average price-per-square-foot for apartments for sale in JLT has experienced moderate declines, averaging at AED 830. Prospective buyers can expect to pay an average of AED 445k for studio flats, AED 728k for 1-bed apartments and AED 1.12M for 2-bed flats.
More upscale neighbourhoods such as Business Bay have seen the price-per-square-foot for apartments reduced by 9.4% to AED 1,153. This could be the result of homeowners keeping prices competitive as more budget-friendly neighbourhoods like JVC and JLT rise in demand. Other areas such as Dubai Silicon Oasis and International City have also remained favourites for affordable apartments, experiencing reductions under 13%, as per our report on Dubai property prices.
Seasons Community is the most popular with buyers for apartments in JVC
Those interested in purchasing apartments in JVC have shown the most amount of interest for Seasons Community. The apartments for sale in Seasons Community start from an affordable price of AED 329k, as per listings on Bayut. Available in 1 and 2-bedroom configurations, these apartments for sale are located in themed clusters.
According to our Dubai real estate market report, Knightsbridge Court, Zaya Hameni, Emirates Garden and Diamond Views also draw attention from buyers for apartments in JVC.
International City offers the best rental yields in Dubai for affordable apartments
International City has remained one of the best options for investors looking to benefit from high rental returns, as per our Dubai property market analysis. Investors can expect an average ROI of 8.5% for apartments in International City, based on the projected rental yields.
Other areas that investors should consider for high rental returns include Dubai Silicon Oasis and Jumeirah Lake Towers, which offer an average ROI of 7.8% and 7.4% respectively.
Dubai Marina is the most popular for buying luxury apartments
Most popular areas to buy luxury apartments in Dubai
POPULAR AREAS | ROI | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019 | 1-BED | 2-BED | 3-BED |
|---|---|---|---|---|---|
| Dubai Marina | ROI 6.2% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 1-BED
| 2-BED
| 3-BED
|
| Downtown Dubai | ROI 5.0% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 1-BED
| 2-BED
| 3-BED
|
| Palm Jumeirah | ROI 5.3% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 1-BED
| 2-BED
| 3-BED
|
| Jumeirah Beach Residence (JBR) | ROI 5.4% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 1-BED
| 2-BED
| 3-BED
|
| DIFC | ROI 6.0% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 1-BED
| 2-BED
| 3-BED
|
As per Bayut & dubizzle’s combined Dubai real estate market report, Dubai Marina unsurprisingly draws the most amount of consumer interest for buying luxury apartments. Aside from its upscale waterfront lifestyle, Dubai Marina is centrally located in New Dubai, offering proximity to both leisure and commercial hubs.
The average price-per-square-foot to buy apartments in Dubai Marina has experienced a moderate decline of 8.4%, going from AED 1,278 to AED 1,171 in 2020. The asking sales prices in Dubai Marina have also reduced slightly throughout 2020 with 1-bed apartments declining from AED 1.12M to AED 1M, and 2-bed flats for sale going from AED 1.75M to AED 1.6M. The 3-bedroom apartments for sale in Dubai Marina have seen asking prices reduce from AED 2.76M to AED 2.58M in 2020 when compared to 2019.
Our analysis of real estate trends in 2020 reveals that Downtown Dubai has continued to be a firm favourite for luxury apartments for sale in Dubai. The average sales-price-per-square-foot for apartments in Downtown Dubai has seen a minor decrease of 3.5%, reducing from AED 1,809 to AED 1,745. Similarly, the asking prices for Downtown Dubai apartments for sale have seen minor decreases, averaging at AED 1.44M for 1-bed apartments, AED 2.51M for 2-bed flats and AED 4.15M for 3-bedroom units.
Other areas that have generated interest for expensive apartments for sale in Dubai include Palm Jumeirah, Jumeirah Beach Residence and DIFC. These upscale communities have also seen minor decreases in average price-per-square-foot between 5% to 10%.
DEC Towers is the top choice for buying apartments in Dubai Marina
According to Dubai real estate trends in 2020, DEC Towers ranks as the first choice for prospective buyers looking for apartments in Dubai Marina. This complex comprises of two mid-rise buildings offering studios, 1, 2 and 3-bed apartments. Those looking to buy apartments in DEC Towers can expect to pay a starting price of AED 500k, according to current listings.
Other apartment complexes and buildings that are sought after in Dubai include Marina Diamonds, Marina Gate, Marina Pinnacle and Manchester Tower.
Dubai Marina offers the best ROI in Dubai for luxury apartments
As per Bayut & dubizzle’s combined report, Dubai Marina yields the highest ROI for luxury apartments for sale, adding to its consistent popularity with buyers. Investors keen on purchasing buy-to-let properties can expect a healthy average ROI of 6.2% for apartments in Dubai Marina, based on projected rental yields. However, please note that while this is an average ROI for the area, it can differ based on the location, developer and amenities offered with the unit.
Other areas that yield healthy rental returns for investors to consider include DIFC (6%) and Jumeirah Beach Residence (5.4%).
Dubailand ranks first for buying affordable villas in Dubai
Dubai property prices for buying affordable villas
POPULAR AREAS | ROI | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019 | 3-BED | 4-BED | 5-BED |
|---|---|---|---|---|---|
| Dubailand | ROI 5.6% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 3-BED
| 4-BED
| 5-BED
|
| The Springs | ROI 5.6% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 3-BED
| 4-BED
| 5-BED
|
| DAMAC Hills (Akoya by DAMAC) | ROI 5.1% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 3-BED
| 4-BED
| 5-BED
|
| Jumeirah Village Circle (JVC) | ROI 5.9% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 3-BED
| 4-BED
| 5-BED
|
| Akoya Oxygen | ROI 5.3% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 3-BED
| 4-BED
| 5-BED
|
Our analysis of real estate trends in Dubai reveals that Dubailand has firmly held the interest of buyers and investors for affordable villas in 2020. The sprawling area of Dubailand comprises several residential projects, offering a variety of choice to buyers, along with attractive payment plans.
The average sales-price-per-square-foot for villas in Dubailand has experienced a minor decrease of 2.4% over the course of 2020, going from AED 652 to AED 636. However, the asking prices for villas for sale in Dubailand have seen an uptick, averaging at AED 2.14M for 3-bedroom villas, AED 2.42M for 4-bedroom villas and AED 2.97M for 5-bedroom homes. As Dubailand is a developing area with regular handovers, these price fluctuations could be the result of more upscale, compact ready properties entering the market.
The well-established community of The Springs has ranked second for budget-friendly villas for sale in Dubai. Its connectivity to major road links and the presence of family-friendly amenities makes The Springs a perennial choice for prospective homeowners with a tighter budget. Thus, the average price-per-square-foot for villas for sale in The Springs has been largely steady in 2020, standing at AED 822. The asking prices for houses in The Springs have also remained largely unchanged, with 3-bed villas averaging at AED 2.16M and 4-bed villas at AED 2.77M.
Aside from The Springs, Dubai property trends indicate a strong preference by prospective buyers for suburban communities, such as DAMAC Hills (Akoya by DAMAC), JVC and Akoya Oxygen. With the average price-per-square-foot ranging between AED 550 to AED 850, these affordable suburbs are rising in demand by offering more renters the opportunity to transition into homeowners.
Falcon City of Wonders is the most-searched-for community in Dubailand
Prospective buyers have paid most attention to Falcon City of Wonders, when considering the villas for sale in Dubailand. Located off Sheikh Mohammed Bin Zayed Road, the asking sale prices for villas in Falcon City of Wonders start from AED 2.2M, as per listings on Bayut.
Other popular sub-communities for buying houses in Dubailand include Living Legends and Al Waha.
Jumeirah Village Circle offers the highest ROI in Dubai for affordable villas
The villas in Jumeirah Village Circle (JVC) offer the best rental returns in Dubai, for buyers and investors with a smaller budget. In 2020, the villa properties in JVC offered an average ROI of 5.9%, as per our analysis of property prices in Dubai.
Dubailand and The Springs have also been popular choices for those looking at buy-to-let properties, yielding average returns of 5.6%.
Arabian Ranches is the most popular choice to buy luxury villas in Dubai
Dubai property prices for luxury villas
POPULAR AREAS | ROI | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019 | 4-BED | 5-BED | 6-BED |
|---|---|---|---|---|---|
| Arabian Ranches | ROI 5.5% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 4-BED
| 5-BED
| 6-BED
|
| Palm Jumeirah | ROI 3.5% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 4-BED
| 5-BED
| 6-BED
|
| Dubai Hills Estate | ROI 4.9% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 4-BED
| 5-BED
| 6-BED
|
| Jumeirah Park | ROI 5.2% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 4-BED
| 5-BED
| 6-BED
|
| Emirates Hills | ROI 3.3% | PRICE PER SQ.FT Avg. Price/sq.ftChange from 2019
| 4-BED
| 5-BED
| 6-BED
|
Those interested in investing in Dubai’s luxury property market were most keen on villas in Arabian Ranches, as per Bayut & dubizzle’s Dubai real estate report for 2020. This golf course development by Emaar has been a favourite with buyers and investors for its wide choice of properties, family-friendly amenities and healthy ROI.
The villas in Arabian Ranches have an average sales-price-per-square-foot of AED 873, which has stayed largely steady throughout 2020. Similarly, the asking prices for Arabian Ranches villas for sale have seen minor decreases. The 4-bed villas in Arabian Ranches have seen average prices decline slightly from AED 3.66M to AED 3.51M while 5-bed houses for sale have dipped from AED 4.56M to AED 4.52M. However, 6-bedroom homes in Arabian Ranches have seen a slight uptick in sales prices, going from an average of AED 6.45M to AED 6.86M.
The exclusive address of Palm Jumeirah has also continued to attract high-net-worth buyers. The price-per-square-foot for villas has seen a minor decrease of 5.7%, dipping from AED 2,198 to AED 2,073 in 2020. The asking prices for villas for sale in Palm Jumeirah have seen slight fluctuations in 2020, averaging at AED 9.45M for 4-bedroom homes, AED 16.2M for 5-bed villas and AED 36.6M for 6-bed houses.
Dubai Hills Estate, Jumeirah Park and Emirates Hills have also stayed popular with HNW buyers interested in luxury villas for sale in Dubai. Emirates Hills has seen a moderate decline of 9.6% in price-per-square-foot, possibly due to increased competition from newer luxury projects in Palm Jumeirah and Dubai Hills Estate.
Al Reem ranks first for buying villas in Arabian Ranches
The sub-community of Al Reem has been the most popular to invest in villas in Arabian Ranches, as per property sales trends in Dubai. The villas for sale in Al Reem include semi-detached layouts with private backyards and community facilities.
Buyers also search for sub-communities such as Palmera, Saheel, Mirador and Alvorada, when it comes to buying villas in Arabian Ranches.
Arabian Ranches offers the highest rental returns for luxury villas in Dubai
In 2020, Arabian Ranches has outpaced other luxury villa developments to emerge as the best option for investors looking to benefit from high return-on-investment. Based on projected rental yields, the villas in Arabian Ranches offer an average ROI of 5.5%, as per our analysis of property prices trends in Dubai.
Nakheel’s Jumeirah Park also remains a healthy option for investors, yielding average returns of 5.2% for villas.
Top off-plan projects in Dubai
Most popular off-plan apartments in Dubai
PROJECT | LOCATION | CATEGORY |
|---|---|---|
PROJECT Rukan | LOCATION Dubailand | CATEGORY Affordable |
PROJECT Al Jaddaf | LOCATION Bur Dubai | CATEGORY Affordable |
PROJECT Pantheon Elysee | LOCATION Jumeirah Village Circle (JVC) | CATEGORY Affordable |
PROJECT Dubai Creek Harbour | LOCATION The Lagoons | CATEGORY Luxury |
PROJECT EMAAR Beachfront | LOCATION Dubai Harbour | CATEGORY Luxury |
PROJECT La Mer | LOCATION Jumeirah | CATEGORY Luxury |
In 2020, investors looking for reasonably-priced off-plan apartments have turned their attention towards suburbs such as Dubailand and Jumeirah Village Circle (JVC). According to our Dubai real estate market report, Rukan in Dubailand has emerged as the top project for affordable off-plan apartments. The apartments for sale in Rukan have a starting price of AED 245k and are available in studio, 1 and 2-bedroom layouts.
Meanwhile, buyers interested in luxury off-plan apartments show a strong preference for waterfront projects, such as Dubai Creek Harbour, EMAAR Beachfront and La Mer. Dubai Creek Harbour offers buyers a wide variety of projects, located close to the upcoming Dubai Creek Tower and views of the Downtown Dubai district. Investors can expect to pay a starting price of AED 650k for apartments in Dubai Creek Harbour.
Top off-plan villa projects in Dubai
PROJECT | LOCATION | CATEGORY |
|---|---|---|
PROJECT Rukan | LOCATION Dubailand | CATEGORY Affordable |
PROJECT Villanova | LOCATION Dubailand | CATEGORY Affordable |
PROJECT EMAAR South | LOCATION Dubai South | CATEGORY Affordable |
PROJECT Golf Place | LOCATION Dubai Hills Estate | CATEGORY Luxury |
PROJECT The Heart of Europe | LOCATION The World Islands | CATEGORY Luxury |
PROJECT La Mer | LOCATION Jumeirah | CATEGORY Luxury |
Similar to off-plan apartments, Rukan in Dubailand has been the first choice for buyers interested in budget-friendly off-plan villas in Dubai. The villas for sale in Rukan have a starting price of AED 482k, and are available in 1, 2, 3 and 4-bedroom layouts. Other off-plan villa projects that have held the attention of prospective buyers include Villanova and EMAAR South, the latter of which is located close to the Expo Dubai site.
In the luxury segment, Golf Place in Dubai Hills Estate has been the most popular choice for buyers interested in upscale, palatial villas. This upcoming community offers golf course-facing villas in 4, 5 and 6-bedroom layouts with prices starting from AED 5.6M. These off-plan villas for sale in Golf Place are expected to start handover in 2021. The ultra-luxurious Heart of Europe in the World Islands and La Mer in Jumeirah have also generated interest for off-plan villa investments in Dubai.
Commenting on the trends for 2020, the CEO of Bayut & dubizzle and Head of EMPG MENA, Haider Ali Khan said:
“2020 has been an exceptionally challenging and uncertain year for the real estate fraternity and the world at large. However, we’ve seen interest in the Dubai real estate sector remain consistently high, with both our portals generating record-breaking combined traffic of over 7 million sessions in December alone. Dubai has been able to stay resilient, in large part due to timely measures from the government, including the stimulus plans and deferred payments for off-plan buyers. At Bayut, we have also remained committed to supporting our partnered agencies and the wider industry during this difficult period by offering our services free-of-charge for two months to our existing partners, and extended support to agencies across the UAE who were not even on-board with us, in the form of free listings on the portal, which helped generate over 18.5M impressions and 65,000 leads for their properties. While these decisions definitely impacted our revenue, we made this strategic call to ensure that the entire industry would be in a better place to recover and rebuild when the situation improved, which it did.
“Despite the difficult situation, it was a milestone year for us at Bayut & dubizzle.We’re immensely proud to be a part of the Emerging Markets Property Group, the only homegrown Unicorn in the Arab World. Two such well-known local brands coming together has definitely been a moment of triumph for the region at large and it has been extremely gratifying to build on our synergies and embark on this ‘stronger together’ journey from our extended office in d3 which is now spread over the 5th and 7th floors.
“With the organised distribution of the vaccine, the future is looking more and more promising. Dubai has set a global example during the pandemic with extremely efficient containment measures and safety guidelines, and made sure to retain its status as a highly competitive market for investors from across the world.”
That concludes our annual sales report on the Dubai real estate market in 2020. Alternatively, are you looking for a breakdown of the rental market? Tenants can read up on our annual Dubai rental market report to identify popular residential neighbourhoods where rental prices have become more affordable in 2020.
Follow MyBayut for our annual market reports on the Abu Dhabi, Sharjah and Ajman property markets. In the meantime, take a look at Dubai real estate news highlights from December 2020, including the latest project launches and updates in the emirate.
Disclaimer: The above report is based on Dubai property prices advertised by real estate agencies on behalf of their clients on Bayut.com and dubizzle property (excluding room share), and not representative of actual real estate transactions conducted in Dubai.
