February 2018 Market Report: Silicon Oasis Pips Dubai Marina to be Most Searched for Area for Apartment Rentals

Each month, Bayut.com gathers data from our website, from user behaviour to price trends to reveal the most popular areas to buy and rent apartments and villas in the UAE, along with their average asking prices for the month. This real estate report looks at how the Dubai property market fared over February 2018, compared to January.

silicon Oasis Overtakes Dubai Marina as the top area to rent apartments in Dubai

February 2018 saw Bayut.com users flock towards apartments for rent in Dubai Silicon Oasis, rather than the previous top neighbourhood, Dubai Marina. This surge in interest compared to previous months can be attributed to the fact that several newly completed projects have gotten delivered recently, resulting in various new properties being available for tenants to consider renting in the area. This change has affected rents for some property types in DSO as well, bringing them down to what they were in January. Rents for 1 and 2 beds in Silicon Oasis remained largely stable (at AED 55k and AED 80k respectively, 2-beds remained at the same price as in January while 1-beds dropped by just 0.20%). However, tenants interested in renting studios were in for a treat as prices dropped by 5% from AED 40k to AED 38k in February.

Coming in second on the list of most popular areas for those looking to rent an apartment in Dubai is Deira. As one of the oldest neighbourhoods in the city, it has no shortage of tenants who are attracted by its plethora of affordable conveniences from supermarkets to shops and clinics as well as wallet-friendly apartments. This popularity, however, was reflected in the fact that asking rents in the area increased by 7% to 10% compared to January 2018 – settling at AED 57k and AED 95k for 1 and 2-bed flats, respectively.

Coming in third place is January’s most popular area, Dubai Marina where the rent of a studio apartment dropped by 4.62% to AED 62k, 1-beds increased by 3.53% to AED 88k while 2-bedroom flats stayed stable at AED 130k.

Of the most searched for areas, the most affordable place to live in Dubai is number four, International City, despite posting increases in their annual asking rents. Those looking to lease an apartment in International City could expect to pay 3.45% more for a studio than in January, i.e., AED 30k, while those interested in 2-beds saw average annual rents increase by 5.45% to AED 58k. 1 bedroom apartments in International City saw no change in their average asking rents, remaining stable at AED 40k.

Rounding off the most popular areas to rent apartments in Dubai is Jumeirah Village Circle or JVC. Tenants could rest easy as the average annual rent for studio and 1-beds remained unchanged from January at AED 43k and AED 60k, respectively, while 2-beds in JVC experienced a slight 1.76% increase in price to AED 86.5k.

Villas for rent in Jumeirah were the most popular in February

When it came to families looking at villas to rent in Dubai during February, Bayut.com users were most drawn to properties in Jumeirah. 3 beds here dropped by just under 2% to command an average annual rent of AED 177.5k, while 4-beds declined in price by 8.33% to AED 220k. 5 bedroom villas in Jumeirah, on the other hand, remained at a stable AED 280k.

Meanwhile, villas in Mirdif slid to the second most searched for area among villa renters. Interestingly, while 3-beds here increased in price to AED 115k, 4-beds dropped by 3.85% to AED 125k.

Meanwhile, Al Barsha villas saw an increase in average annual rents of between 1.54% and 6.67% in their 3, 4 and 5 bedroom properties, to AED 165k, AED 200k and AED 24k, respectively.

Villas in Umm Suqeim also increase in asking rents in February 2018 as compared to January. Tenants looking for a villa rental here could expect to pay 4%, 2.27% and 3.57% more for 3, 4 and 5-bed villas, respectively – translating to AED 195k, AED 225k and AED 290k.

Apartments for sale in Dubai Marina are the most searched for in February

Echoing the trend in January, Dubai Marina apartments for sale garnered the most interest from Bayut.com’s users, with the average sale price increasing by 1.73% to AED 85.45k for a studio, while 1 and 2 beds dropped to AED 1.2M and AED 2.02M, respectively – that is, by 4.25% and 7.95%.

Meanwhile, the prestigious Downtown Dubai saw an influx of expensive studios enter the market, causing the average asking price for this property type increase to AED 1.25M. However, as more properties across the price spectrum are launched, we expect this number to drop. Investors also saw the cost of a 1-bed apartment in Downtown Dubai go up slightly by 3.23% to AED 1.6M, while 2-beds experienced a decline in price of 9.17% to AED 2.6M.

Similar to the price trend seen in apartment rentals, International City is once again the most affordable of the popular areas. Studio apartments for sale here saw prices rise by 1.56% to AED 325k, while 1 bedroom flats in International City saw a very slight 0.69% drop in their average asking price to AED 432k. 2 beds, on the other hand, posted an average sale price of AED 735k in February, just under 3% cheaper than in January.

Our data revealed that investors were also very interested to buy an apartment in Jumeirah Village Circle (JVC). Prices here also dropped by 2% to 3.7%, meaning that studios were listed for an average sale price of AED 419k, 1-beds at AED 735k and 2 beds at a relatively affordable AED 1.18M.

Prices of apartments for sale in Jumeirah Lake Towers (JLT) also dipped slightly to AED 682.5k for a studio, AED 1.1M for a 1 bedroom flat and AED 1.55M for those interested in 2 bedroom apartments in JLT.

Investors in Dubai apartments also saw their expected average ROI remain largely stable at 6.58%, just under 1% more than in January.

investors flock to Arabian Ranches Villas for sale

Once again, firm favourite Arabian Ranches has proved to be the most popular area for homebuyers and investors looking to buy a villa in Dubai. Prices in this neighbourhood also remained largely stable, with 3 bedroom villas being listed at an average of AED 3.12M (0.8% more than in January), 4 bedroom properties at AED 4.25M (1.2% dearer than the previous month) while only 5 bedroom villas in Arabian Ranches showed a drop in average price by 3.3% to AED 5.2M.

The rapidly up and coming Dubailand is also proving to be one of the city’s villa investment hotspots as well, bolstered by the fact that 3 beds here posted absolutely no change in sale price in February, staying at AED 1.25M. 4 bedroom Dubailand villas also showed only a minor 0.2% decrease in price to AED 2.5M. According to data from Bayut.com, 5 beds experienced a massive 18.5% increase in their average asking price, however, this can once again be attributed to the increase in the number of properties on the pricier side of the spectrum. However, as the projects sees more properties go on the market, sale price trends should stabilise.

Meanwhile, in another sought-after neighbourhood, Palm Jumeirah, prices dropped by just under 8% to AED 10.45M for those looking for a 4-bed property, while the influx of expensive properties saw the average price of 5-bed villas in Palm Jumeirah climb to AED 16.5M.

The most significant sale price fluctuations are found in properties located in The Villa neighbourhood, namely a 5.3% increase in the average asking price of a 4-bed and a 5.9% decrease in the price of 5-beds, ending at AED 4M and 3.97M, respectively.

Rounding off the list of most popular areas in Dubai to buy villas is the upscale Dubai Hills Estate. With new projects being constantly released, expect to shell out an average of AED 3.40M for a 3-bed villa in Dubai Hills Estate while 4-beds go for an average of AED 5.5M.

Villa owners and investors also saw their average expected ROI increase by 1.34% to 5.29%.

summary of sale and rent trends in Dubai property over February

Overall, the Dubai property market remained relatively stable, with new off-plan properties causing prices to spike in certain areas. In terms of popularity of areas, Dubai Marina apartments remained the go-to for those looking to buy apartments, while Arabian Ranches was once again the favourite for villa investors. In terms of rentals, Dubai Silicon Oasis was the surprise choice in the number one position for apartment-hunters, presumably due to the delivery of off-plan properties while Jumeirah villas reigned supreme.

For more UAE property market insights, trends, tips and reports, stay tuned to the UAE’s best property blog, MyBayut.

Disclaimer: The above report 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.