Bayut & dubizzle’s Q1 2021 Dubai market report for properties for sale

• Top Neighbourhoods in Dubai
• Affordable Apartments
• Luxury Apartments
• Affordable Villas
• Luxury Villas
• Top Off-Plan Projects

After a challenging year for the world at large, the Dubai real estate sector has started on a positive note in the first quarter of 2021. Bayut & dubizzle’s Q1 2021 sales market report provides a comprehensive analysis of Dubai property prices in the first quarter of the year.

For our quarterly sales market report, our data engineers have compared property prices in Dubai from the first three months of 2021 to those from the last three months of 2020.

In the first quarter of 2021, the Dubai property market has seen sales prices stabilise and recover in the most popular neighbourhoods. According to the combined data released by Bayut & dubizzle, areas with affordable apartments and villas have seen sales price-per-square-foot largely remain steady in Q1, recording small increases of up to 5%. However, Dubai’s luxurious neighbourhoods have seen an impressive recovery between 5% to 10% in prices overall.

Several factors have likely contributed to this upswing in sales prices; lower down payments, favourable mortgage rates, attractive prices and the need for bigger living spaces brought on by the pandemic have further increased appetite for Dubai real estate, particularly ready properties for sale.

The recent announcements regarding the UAE citizenship law, remote working visas and 100% ownership of foreign businesses have also widened the pool of prospective buyers and investors in the emirate. According to data published by the Dubai Land Department, 62% of the total investors entering the market in January and February 2021 were new investors, highlighting Dubai’s growing appeal as a property investment destination.

Bayut & dubizzle’s Dubai property market report has also revealed that investors interested in smaller ticket properties remain keen on suburban neighbourhoods such as Jumeirah Village Circle, Dubailand and Akoya Oxygen. Other affordable communities such as Jumeirah Lake Towers, Dubai Silicon Oasis, The Springs and Mudon have also generated interest with smaller investors.

On the other hand, high-net-worth investors have focussed their attention on established communities such as Dubai Marina, Downtown Dubai, Arabian Ranches and Palm Jumeirah. However, other upscale developments such as Dubai Hills Estate and The Villa have also become a firm favourite with investors looking for luxury properties.

For an accurate representation of Dubai property prices, our Q1 2021 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 Q1 2021.

Top neighbourhoods in Dubai according to trends on Bayut & dubizzle

Consumer search trends on Bayut & dubizzle have revealed that prospective buyers and investors continued to favour well-integrated communities such as Jumeirah Village Circle, Dubai Marina and Downtown Dubai that offer plenty of family-friendly amenities and attractions.

Developing areas such as Dubailand and Dubai Hills Estate have also continued to be a popular choice for potential buyers, offering both off-plan and ready properties for sale.

Other established communities such as Palm Jumeirah, Arabian Ranches, Jumeirah Lake Towers, Business Bay and Dubai Sports City have also ranked amongst the most sought-after areas with properties for sale in Dubai in Q1 2021.

According to data released by the Dubai Land Department, 6,328 transactions for residential properties were recorded in Q1 2021, amounting to a total value of AED 8.9B. Transactions for ready properties took the lead in the first quarter, accounting for nearly 64% of total residential transactions. This could be the result of buyers keen to take advantage of affordable prices and upgrade to bigger homes, which has increased demand in the ready property market.

Keep reading for Bayut & dubizzle’s in-depth analysis of Dubai property prices for apartments and villas in popular neighbourhoods.

Jumeirah Village Circle has remained most popular to buy affordable apartments in Dubai

Average sales prices for affordable apartments: Bayut & dubizzle Dubai Real Estate Sales Market Report Q1 2021

According to the combined data released by Bayut & dubizzle for Q1 2021, Jumeirah Village Circle (JVC) has retained its position as the most-searched-for area with affordable apartments for sale in Dubai. The sales-price-per-square-foot for flats in JVC has seen a slight decline of 2.21%, going from AED 823.8 in Q4 2020 to AED 805.6 in Q1 2021. The asking prices for apartments for sale in JVC have averaged at AED 403k for studios, AED 652k for 1-bedroom apartments and AED 920k for 2-bedroom flats.

Jumeirah Lake Towers (JLT) has also maintained its popularity with prospective buyers and investors for affordable apartments. JLT has experienced an uptick in price-per-square-foot, rising by 2.17% to AED 838.61 in the first quarter of 2021. The average prices to buy apartments in JLT have also seen slight increases; studio flats have risen from AED 419k to AED 434k, 1-bedroom apartments have increased from AED 692k to AED 713k and 2-bedroom flats from AED 1.11M to AED 1.13M.

Other suburbs such as Dubai Silicon Oasis and Dubai Sports City have also seen sales-price-per-square-foot recover in the last quarter, increasing by 2% to 4%. International City has also seen its price-per-square-foot for apartments remain fairly stable, averaging at AED 439.21 in Q1 2021.

International City offers the best ROI in Dubai for affordable apartments

As per the Dubai real estate report by Bayut & dubizzle, apartments for sale in International City have continued to be the best option for investors looking for high rental returns. Our analysis of Dubai property prices reveals that flats in International City offer an average ROI of 7.61%, based on projected rental yields.

Investors can also consider apartments in Dubai Silicon Oasis and Dubai Sports City, which also yield healthy returns of around 7%, according to our Dubai real estate market report 2021.

Dubai Marina holds investor interest for luxury apartments in Q1 2021

Dubai property prices for luxury apartments for sale: Q1 Bayut & dubizzle Dubai Property Sales Market Report

Bayut & dubizzle’s combined property market report has also revealed that the emirate’s luxury apartment segment has fared well in Q1 2021, driven by attractive Dubai property prices and lower mortgage rates.

Dubai Marina has continued to generate the most interest from buyers and investors, thanks to quality properties, waterfront views and proximity to several tourist attractions. The average price-per-square-foot to buy apartments in Dubai Marina has gone up by 5.62% in Q1, going from AED 1,152 to AED 1,217. Similarly, the flats for sale in Dubai Marina have also seen an increase in asking prices. The 1-bedroom flats in Dubai Marina have seen the average sales price rise from AED 972k to AED 1.03M, while 2 and 3-bedroom apartments now stand at AED 1.59M and AED 2.62M respectively.

Other historically-popular communities such as Downtown Dubai, Business Bay and Palm Jumeirah have also seen sales-price-per-square-foot climb upwards between 5% to 8%, according to trends in Dubai’s real estate market. Buyers can expect to pay an average price-per-square-foot of AED 1,891 for apartments in Downtown Dubai, up from AED 1,798 in Q4 2020. Downtown Dubai has also seen asking prices rise in Q1 2021, commanding an average of AED 1.43M for 1-bed apartments, AED 2.54 for 2-bed flats and AED 4.48M for 3-bedroom units.

Dubai Marina yields high rental returns for luxury apartments in Dubai

When it comes to ROI, Dubai Marina offers the best rental returns for investors keen to buy apartments in Dubai. According to our Dubai property market analysis, investors can enjoy an average ROI of 5.5% from flats in Dubai Marina, although this can vary depending on the building’s location, developer and amenities.

Following close behind is Business Bay, which also yields strong rental returns of 5.35%, as per our Dubai real estate analysis.

Dubailand ranks as the most popular choice to buy affordable villas in Dubai

Average property prices in Dubai to buy affordable houses: Bayut & dubizzle Dubai Sales Market Report Q1 2021

Bayut & dubizzle’s report of property trends in Dubai indicate that Dubailand has maintained its popularity for affordable villa sales in Q1 2021. The villas in Dubailand have experienced a slight increase in price-per-square-foot, going from an average of AED 655 to AED 667. This could be attributed to the increasing interest from prospective buyers keen to take advantage of attractive prices and transition to homeownership, as well as those looking to upgrade to bigger homes.

Investors interested in buying villas in Dubailand can expect to pay an average of AED 1.37M for 3-bedroom homes, AED 1.73M for 4-bedroom houses and AED 2.59M for 5-bedroom homes, as per our Dubai property market report 2021.

Similar to apartment sales, Jumeirah Village Circle (JVC) also attracts investors attention for buying reasonably-priced villas. JVC has seen its price-per-square-foot for villas remain fairly steady in Q1 2021, dipping slightly from AED 546 to AED 540. The average asking prices for houses for sale in JVC stand at AED 1.72M for 3-bed villas and AED 1.95M for 4-bedroom homes.

Following similar trends to 2020, investors have continued to show interest in communities away from the city centre, such as Akoya Oxygen and Mudon. Both of these communities have experienced an uptick in price-per-square-foot for villas between 2% to 6%, in line with prevailing trends. The established neighbourhood of The Springs has also continued to be a popular choice to buy villas in Dubai.

Jumeirah Village Circle yields the best rental returns in Dubai for affordable villas

Smaller investors looking for villa properties with healthy return-on-investment should consider Jumeirah Village Circle, which delivers average returns of 5.89%. Other affordably-priced villa communities with strong ROI are Mudon (5.64%) and Dubailand (5.29%), while Akoya Oxygen and The Springs also yield returns around the 5% mark.

Arabian Ranches holds the top spot for buying luxury homes in Dubai

Real estate prices in Dubai for luxury villas in popular neighbourhoods: Bayut & Dubizzle Dubai Sales Market Report Q1 2021

Bayut & dubizzle’s Dubai real estate market report for Q1 2021 reveals that Arabian Ranches has continued to be the favourite for buying upscale villas in the emirate. The family-friendly development has seen its price per square foot rise from AED 931 to AED 1,022 in the first quarter for 2021, which could be attributed to increased demand from buyers looking to purchase ready-to-move-in villas in the secondary market. The average asking prices to buy houses in Arabian Ranches have also experienced small increases in Q1 2021. The 4-bed villas in Arabian Ranches have risen from AED 3.61M to AED 3.91M, 5-bed homes have increased from AED 4.77M to AED 5.09M and 6-bedroom villas for sale in Arabian Ranches have gone from AED 6.55M to AED 7.93M.

According to property price trends in Dubai, the sales price-per-square-foot for villas in Dubai Hills Estate has also risen by 7% in Q1 2021, increasing from AED 1,092 to AED 1,169. The average prices for these luxury villas for sale in Dubai stand at AED 3.66M for 4-bed villas, AED 5.63M for 5-bed homes and AED 12.77M for 6-bed houses.

Other popular communities such as The Villa, Palm Jumeirah and Jumeirah Golf Estates have also seen prices for ready villa properties increase between 7% to 10% in the first quarter of the year.

Arabian Ranches has the best return-on-investment in Dubai for luxury houses

Another reason for Arabian Ranches’ consistent popularity with prospective buyers is its strong rental returns. Our analysis of Dubai real estate prices has revealed that villa properties in Arabian Ranches deliver an average ROI of 5.2%.

This is followed by Dubai Hills Estate and Jumeirah Golf Estate, which yield average returns of 4.88% and 4.73% respectively.

Popular areas for off-plan properties in Dubai

The off-plan market in Dubai has also generated significant interest in the first quarter of 2021. Our Q1 2021 property market report in Dubai reveals the most popular areas to buy off-plan apartments and villas.

Top projects for off-plan apartments in Dubai

When it comes to affordable off-plan apartments in Dubai, investors have focussed their attention on up-and-coming areas such as Al Jaddaf and Dubailand. In Al Jaddaf, Binghatti Avenue has generated the most interest from buyers, offering views of the Burj Khalifa. The apartments for sale in Binghatti Avenue are available in 1, 2 and 3-bedroom layouts and have a starting price of AED 522k, as per listings on Bayut.

Our Dubai property market report for Q1 2021 has also revealed that investors searching for luxury off-plan apartments remained keen on waterfront developments such as Dubai Harbour and The Lagoons. The upcoming EMAAR Beachfront project has drawn the most attention from investors, comprising 27 residential towers overlooking the Arabian Gulf. The flats for sale in EMAAR Beachfront offer 1 to 4-bedroom configurations and start from AED 1.13M.

Top projects for off-plan villas in Dubai

Those interested in affordably-priced off-plan villa communities have continued to show interest in suburbs such as Dubailand and Dubai South. Following similar trends to 2020, Rukan in Dubailand has remained the favourite for off-plan villas in Dubai, offering a well-integrated community with family-friendly amenities and spacious homes.

For luxury villa properties, master-planned communities such as Mohammed Bin Rashid City (MBR City) and Dubai Hills Estate are most popular with buyers and investors, as per Dubai real estate trends. District One, which is home to sub-communities such as Meydan Sobha and District One Mansions, has been the first choice for buyers in MBR City. The luxury homes for sale in District One start from AED 4.89M and are available in 4 to 8-bedroom configurations.

Haider Ali Khan, CEO of Bayut & dubizzle and Head of EMPG MENA, commented on the performance of the Dubai real estate market:

“This year has really started off on a good note for the Dubai real estate market. In the first quarter of 2021, we have seen an impressive growth in demand; prices have increased in most of the key areas and the volume of transactions have also gone up. In fact, some of the sales prices for popular areas in Dubai are the highest we have seen in the market since 2014, which is a good measure of the confidence that property seekers currently have in Dubai’s real estate market.

“We have also noticed that there is a lot of positive sentiment in the market, thanks to the recent announcements from the government, both locally and internationally. We have seen the impact of this on the traffic to both our portals as well. The combined traffic for Bayut & dubizzle property in the last three months alone, exceeded 21 million sessions. All of this points to the fact that there is a growing appetite for residential space in the city; a trend that we could see transitioning into the rest of the year as well.”

That concludes our Dubai sales market report for Q1 2021. You can also read up on Bayut & dubizzle’s Q1 2021 Dubai rental report, which provides a closer look at popular areas to rent apartments and villas and evolution of average rents in these neighbourhoods.

We will soon be releasing our Q1 2021 reports for Abu Dhabi, Sharjah and Ajman, so make sure to follow MyBayut!

You can also stay updated on Dubai real estate news in March 2021 and find out about the latest project launches and updates.

Disclaimer: The above report is based on Dubai property prices advertised by real estate agencies on behalf of their clients on Bayut.com & dubizzle property (excluding room share), and not representative of actual real estate transactions conducted in Dubai.