Dubai Market Report for H1 2020: Prices remain favourable for buyers and tenants

• Apartment sales
• Apartment rentals
• Villa sales
• Villa rentals
• Top off-plan projects

As we enter the second half of 2020, it’s time to look back on the performance of the city’s property market with Bayut’s detailed H1 2020 Dubai Market report. Our data engineers analysed the performance of the real estate market and studied the evolution of Dubai property prices in the first six months of 2020, compared to the last six months of 2019 to identify some of the common trends for consumer interest in the emirate’s property market. If you are curious to know more about how prices fared in the months between January to June, take a look at our in-depth H1 2020 Dubai Market report for more information.

Just like most other parts of the world, Dubai also experienced the impact of COVID-19 during the first half of 2020. Temporary restrictions on movement and travel also came into effect in the UAE during this period.

As a result, real estate transactions in Dubai’s property market have predictably seen a decline in H1 2020, as per data from the Dubai Land Department. Property prices in Dubai have also largely remained favourable to prospective buyers and renters, with the exception of certain luxury areas such as Arabian Ranches, Downtown Dubai and Palm Jumeirah where there has been a slight uptick in average sales price-per-square-foot.

Our analysis of Dubai property trends also reveals that home buyers and investors are keen on established, well-integrated communities such as Dubai Marina, Arabian Ranches and Palm Jumeirah with upscale amenities and reputed developers behind them. New developments close to the city’s main highways such as Dubai Hills Estate and DAMAC Hills are also capturing the interest of buyers while tenants in Dubai remain firmly interested in established, family-friendly neighbourhoods.

For an accurate representation of Dubai property prices, our H1 2020 Market Report compares the average price-per-square-foot for an area when it comes to properties for sale. 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.

When it comes to the average prices for rental apartments and villas, we have compared the annual asking rents for H1 2020 to H2 2019.

Keep reading for our Dubai real estate market report on the evolution of sales and rental prices in key neighbourhoods.

Property Transactions according to DLD in Bayut’s top neighbourhoods in Dubai

AREA	No. of Property Transactions in H2 2019	Value of Transactions in AED for H2 2019	No. of Property Transactions in H1 2020	Value of Transactions in AED for H1 2020
AREA Dubai Marina	No. of Property Transactions in H2 2019 1937	Value of Transactions in AED for H2 2019 4.56 B	No. of Property Transactions in H1 2020 1528	Value of Transactions in AED for H1 2020 3.37 B
AREA Palm Jumeirah	No. of Property Transactions in H2 2019 420	Value of Transactions in AED for H2 2019 1.6 B	No. of Property Transactions in H1 2020 435	Value of Transactions in AED for H1 2020 1.19 B
AREA Jumeirah Village Circle (JVC)	No. of Property Transactions in H2 2019 848	Value of Transactions in AED for H2 2019 1.44 B	No. of Property Transactions in H1 2020 1174	Value of Transactions in AED for H1 2020 1.36 B
AREA Arabian Ranches	No. of Property Transactions in H2 2019 125	Value of Transactions in AED for H2 2019 336.9M	No. of Property Transactions in H1 2020 86	Value of Transactions in AED for H1 2020 284.03M
AREA Downtown Dubai	No. of Property Transactions in H2 2019 986	Value of Transactions in AED for H2 2019 2.65 B	No. of Property Transactions in H1 2020 951	Value of Transactions in AED for H1 2020 2.59 B
AREA The Villa	No. of Property Transactions in H2 2019 1559	Value of Transactions in AED for H2 2019 2.35 B	No. of Property Transactions in H1 2020 851	Value of Transactions in AED for H1 2020 1.24 B
AREA Dubailand	No. of Property Transactions in H2 2019 74	Value of Transactions in AED for H2 2019 269.73M	No. of Property Transactions in H1 2020 188	Value of Transactions in AED for H1 2020 419.68M
AREA Dubai Hills Estate	No. of Property Transactions in H2 2019 1050	Value of Transactions in AED for H2 2019 2.36 B	No. of Property Transactions in H1 2020 558	Value of Transactions in AED for H1 2020 1.52 B
AREA Dubai Silicon Oasis	No. of Property Transactions in H2 2019 324	Value of Transactions in AED for H2 2019 315.12M	No. of Property Transactions in H1 2020 266	Value of Transactions in AED for H1 2020 220.16M
AREA Jumeirah Lake Towers (JLT)	No. of Property Transactions in H2 2019 693	Value of Transactions in AED for H2 2019 1.03 B	No. of Property Transactions in H1 2020 579	Value of Transactions in AED for H1 2020 623.11M

Property search trends on Bayut reveal that historically-popular areas such as Dubai Marina, Palm Jumeirah, Arabian Ranches, Jumeirah Village Circle and Downtown Dubai have dominated consumer interest in the first half of 2020 as well. Up-and-coming suburbs with off-plan properties, such as Dubai Hills Estate and Dubailand, are also appealing to prospective buyers and investors.

According to DLD’s Dubai REST app, there were a total of 15,897 sales transactions recorded in the first half of 2020, amounting to a total value of AED 32.5B. Overall, property transactions in Dubai’s top neighbourhoods have declined in H1 2020, when compared to H2 2019. This decline was largely caused by the temporary restrictions on the movement of citizens and residents within the country as part of the UAE’s efforts to combat the COVID-19 pandemic, which impacted property viewings and other real estate activity.

However, with the movement restrictions being largely lifted across the UAE toward the end of June, real estate transactions in the Dubai property market are expected to gradually pick up again. This will also be facilitated by innovative, digital tools such as property video tours and interactive 3D floor plans, which can help property seekers in the emirate stay safe while making crucial purchasing decisions. The financial measures introduced by the UAE’s Central Bank to protect the economy including the real estate sector, such as increasing loan-to-value ratios for first-time buyers by 5 percentage points, will also further bolster the confidence of prospective buyers and renters.

As per DLD’s REST app, one of the most popular areas with Bayut’s users, Dubai Marina has once again recorded the highest value of transactions in H1 2020, registering sales worth AED 3.37B. This is followed by Downtown Dubai, which recorded transactions worth AED 2.59B, and then Dubai Hills Estate at AED 1.52B. On the other hand, Dubailand was the only area, amongst the city’s top neighbourhoods, to see an increase in real estate transactions in H1 2020 as compared to H2 2019. This developing area recorded transactions worth AED 419.68M in H1 2020, a significant increase from AED 269.73M worth of transactions registered in H2 2019.

Let’s take a closer look at how Dubai property prices for buying and renting apartments and villas have evolved in the first half of 2020 when compared to the second half of 2019.

Dubai Marina is the first choice for buying apartments in Dubai

Dubai Property Prices for Buying Apartments in H1 2020

POPULAR AREAS	ROI	PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019	STUDIO APT	1-BED APT	2-BED APT
Dubai Marina	ROI 6.5%	PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019 1,252 -2.0%	STUDIO APT 648,000	1-BED APT 1,062,000	2-BED APT 1,698,000
Downtown Dubai	ROI 5.4%	PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019 1,830 1.2%	STUDIO APT 901,000	1-BED APT 1,535,000	2-BED APT 2,607,000
Jumeirah Village Circle (JVC)	ROI 7.4%	PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019 771 -6.1%	STUDIO APT 407,000	1-BED APT 644,000	2-BED APT 1,005,000
Jumeirah Lake Towers (JLT)	ROI 7.9%	PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019 865 -1.3%	STUDIO APT 477,000	1-BED APT 775,000	2-BED APT 1,173,000
Palm Jumeirah	ROI 5.8%	PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019 1,385 1.3%	STUDIO APT 901,000	1-BED APT 1,699,000	2-BED APT 2,335,000
Business Bay	ROI 6.0%	PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019 1,206 -3.3%	STUDIO APT 657,000	1-BED APT 999,000	2-BED APT 1,620,000
Dubai Silicon Oasis	ROI 8.2%	PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019 610 -6.4%	STUDIO APT 321,000	1-BED APT 505,000	2-BED APT 724,000
International City	ROI 9.0%	PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019 472 -4.1%	STUDIO APT 243,000	1-BED APT 338,000	2-BED APT 593,000
Jumeirah Beach Residence (JBR)	ROI 6.4%	PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019 1,100 -4.2%	STUDIO APT 878,000	1-BED APT 1,170,000	2-BED APT 1,643,000
Dubai Sports City	ROI 7.5%	PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019 677 -1.1%	STUDIO APT 360,000	1-BED APT 547,000	2-BED APT 816,000

According to Bayut’s Dubai property market analysis, the upscale location of Dubai Marina continues to hold the interest of buyers and investors in H1 2020. Dubai Marina is known for its waterfront apartments and proximity to key neighbourhoods.

Our analysis of Dubai property prices reveals that the average price-per-square-foot to buy apartments in Dubai Marina experienced a marginal decline of 2%, from AED 1,277 in H2 2019 to AED 1,252 in H1 2020.

The asking prices to invest in studio apartments in Dubai Marina have also declined slightly from AED 694k to AED 648k while prices of 1-bedroom flats have gone from AED 1.11M to AED 1.06M. Meanwhile, 2-bedroom apartments for sale in Dubai Marina saw prices remain steady in H1 2020 at AED 1.69M.

Downtown Dubai ranks as the second-most popular area in the Dubai real estate market for apartment sales in H1 2020. This centrally-located district saw an uptick in the average price-per-square-foot for buying apartments, going from AED 1,808 to AED 1,830 in the first half of 2020. As per our report on property prices in Dubai, the prices to buy studio apartments in Downtown Dubai averages at AED 901k. Prospective buyers can expect to pay an average of AED 1.54M for 1-bedroom apartments in Downtown Dubai and AED 2.61M for 2-bedroom flats.

Similarly, the upscale island community of Palm Jumeirah also experienced a slight increase in the average price-per-square-foot, rising from AED 1,368 to AED 1,385. This can be attributed to the recent increase in LTV from 75% to 80% for mortgage loans for first-time buyers, as part of the financial stimulus package in the UAE. This decision may have not only made it more affordable for first-time buyers to purchase property in these luxury areas but also allowed sellers to negotiate more favourable prices. Additionally, the well-integrated amenities and safety offered by these communities may be more appealing now after the extended period of movement restrictions.

Other areas that have drawn attention from potential buyers include both suburban and centrally-located neighbourhoods such as Jumeirah Village Circle (JVC), Jumeirah Lake Towers (JLT), Business Bay, Dubai Silicon Oasis (DSO) and JBR (Jumeirah Beach Residence). Overall, most of these areas have seen marginal declines in average price-per-square-foot of under 6% in the first half of 2020.

Marina Pinnacle is the most popular building in Dubai Marina to buy apartments

For those interested in buying apartments in Dubai Marina, Bayut’s H1 2020 Dubai Property Market Report indicates that Marina Pinnacle is this neighbourhood’s most sought-after building. Situated in the heart of Dubai Marina, Marina Pinnacle offers 1, 2 and 3-bedroom flats to buyers and investors. The starting price to buy 1-bedroom flats in Marina Pinnacle is AED 565k, while 2-bedroom apartments start from AED 795k.

Other popular buildings in the area include Horizon Tower, Marina Gate, Marina Diamonds, DEC Towers and Manchester Tower.

International City offers the best rental yield in Dubai for apartments

Investors interested in Dubai real estate’s high rental yields should turn their attention to International City, which offers exceptional ROI of 9%. International City is known for its affordable apartments for sale in themed clusters, offering favourable opportunities for investors looking for buy-to-let properties.

Other areas that offer some of the best ROI in Dubai for apartments include Dubai Silicon Oasis and JLT, which have rental yields of 8.2% and 7.9% respectively.

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

Jumeirah Village Circle (JVC) ranks first for renting flats in Dubai

Property Price Trends in Dubai for Renting Apartments

POPULAR AREAS	STUDIO Avg. Yearly RentChange from H2 2019	1-BED APT Avg. Yearly RentChange from H2 2019	2-BED APT Avg. Yearly RentChange from H2 2019
Jumeirah Village Circle (JVC)	STUDIO Avg. Yearly RentChange from H2 2019 32,000 -8.6%	1-BED APT Avg. Yearly RentChange from H2 2019 48,000 -4.0%	2-BED APT Avg. Yearly RentChange from H2 2019 69,000 -5.5%
Dubai Marina	STUDIO Avg. Yearly RentChange from H2 2019 48,000 -4.0%	1-BED APT Avg. Yearly RentChange from H2 2019 72,000 -5.3%	2-BED APT Avg. Yearly RentChange from H2 2019 106,000 -3.6%
Al Nahda	STUDIO Avg. Yearly RentChange from H2 2019 31,000 N/A	1-BED APT Avg. Yearly RentChange from H2 2019 37,000 0.0%	2-BED APT Avg. Yearly RentChange from H2 2019 49,000 -2.0%
Bur Dubai	STUDIO Avg. Yearly RentChange from H2 2019 37,000 -2.6%	1-BED APT Avg. Yearly RentChange from H2 2019 53,000 -1.9%	2-BED APT Avg. Yearly RentChange from H2 2019 71,000 -2.7%
Deira	STUDIO Avg. Yearly RentChange from H2 2019 29,000 -3.3%	1-BED APT Avg. Yearly RentChange from H2 2019 49,000 0.0%	2-BED APT Avg. Yearly RentChange from H2 2019 67,000 -5.6%
Dubai Silicon Oasis	STUDIO Avg. Yearly RentChange from H2 2019 28,000 -3.4%	1-BED APT Avg. Yearly RentChange from H2 2019 41,000 -4.7%	2-BED APT Avg. Yearly RentChange from H2 2019 63,000 -4.5%
Business Bay	STUDIO Avg. Yearly RentChange from H2 2019 48,000 -4.0%	1-BED APT Avg. Yearly RentChange from H2 2019 67,000 -1.5%	2-BED APT Avg. Yearly RentChange from H2 2019 92,000 -6.1%
Dubai Sports City	STUDIO Avg. Yearly RentChange from H2 2019 27,000 -10.0%	1-BED APT Avg. Yearly RentChange from H2 2019 40,000 -7.0%	2-BED APT Avg. Yearly RentChange from H2 2019 57,000 -8.1%
Downtown Dubai	STUDIO Avg. Yearly RentChange from H2 2019 53,000 -11.7%	1-BED APT Avg. Yearly RentChange from H2 2019 81,000 -2.4%	2-BED APT Avg. Yearly RentChange from H2 2019 123,000 1.7%
Dubailand	STUDIO Avg. Yearly RentChange from H2 2019 24,000 -4.0%	1-BED APT Avg. Yearly RentChange from H2 2019 34,000 -2.9%	2-BED APT Avg. Yearly RentChange from H2 2019 51,000 -1.9%
Not available due to low/no historical inventory or influx of off-plan properties

Prospective renters turn to Jumeirah Village Circle (JVC) as their first choice for renting apartments, as per our analysis of the Dubai rental market. This suburb along Al Khail Road (E44) has developed into a family-friendly community with affordable properties and abundant amenities. Overall, JVC has seen moderate decreases in rental prices between 4% to 8%, in line with prevailing market expectations. The cost to rent studio flats in JVC went down marginally from AED 35k to AED 32k, while the annual cost for 1-bedroom apartments for rent decreased from AED 50k to AED 48k. Similarly, the 2-bedroom rental apartments in JVC also saw a slight decrease in costs, going from AED 73k in H2 2019 to AED 69k currently, as per our trends for Dubai property prices.

Dubai Marina came in second amongst the top areas for rental apartments in Dubai, experiencing marginal declines for average rents under 5%. The cost to rent apartments in Dubai Marina average at AED 48k for studio flats, AED 72k for 1-bedroom apartments and AED 106k for 2-bedroom apartments.

Bayut’s report on Dubai property trends shows that Al Nahda, Bur Dubai, Dubai Silicon Oasis, Dubai Sports City, Business Bay and Downtown Dubai are also sought after for rental flats. These areas have largely seen moderate declines in average rents between 2% to 8%. Only studio flats in Dubai Sports City and Downtown Dubai saw a more notable decline in rental costs at the 10% mark, which could indicate an interest in upgrading to larger living spaces.

Seasons Community is the most popular area to rent apartments in JVC

Bayut’s Dubai property market analysis for the first half of 2020 reveals that Seasons Community is the most popular area for apartments for rent in JVC. This popular apartment complex comprises two clusters, Summer and Autumn, and offers 1 and 2-bedroom rental apartments. According to current listings on Bayut, the prices to rent 1-bedroom flats in Seasons Community start from AED 27.9k while 2-bedroom apartments start from AED 42.9k.

Other buildings and apartments complexes popular with tenants looking for rental flats in JVC include Diamond Views, Zaya Hameni and Emirates Garden.

Arabian Ranches becomes the top areas for villa sales in Dubai

Property Trends in Dubai for Buying Villas

POPULAR AREAS	ROI	PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019	3-BED VILLA	4-BED VILLA	5-BED VILLA
Arabian Ranches	ROI 5.5%	PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019 897 1.9%	3-BED VILLA 2,286,000	4-BED VILLA 3,572,000	5-BED VILLA 4,583,000
Palm Jumeirah	ROI 3.4%	PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019 2,113 -1.4%	3-BED VILLA 5,161,000	4-BED VILLA 9,221,000	5-BED VILLA 16,001,000
The Villa	ROI 5.1%	PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019 664 -1.0%	3-BED VILLA 2,850,000	4-BED VILLA 3,272,000	5-BED VILLA 3,764,000
Dubai Hills Estate	ROI 4.8%	PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019 988 -2.4%	3-BED VILLA 2,773,000	4-BED VILLA 3,190,000	5-BED VILLA 4,151,000
Dubailand	ROI 5.4%	PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019 629 0.2%	3-BED VILLA 1,690,000	4-BED VILLA 2,267,000	5-BED VILLA 2,719,000
DAMAC Hills (Akoya by DAMAC)	ROI 5.2%	PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019 874 -4.3%	3-BED VILLA 1,876,000	4-BED VILLA 2,636,000	5-BED VILLA 4,377,000
The Springs	ROI 6.0%	PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019 816 1.3%	3-BED VILLA 2,127,000	4-BED VILLA 2,917,000	5-BED VILLA N/A
Jumeirah Park	ROI 5.5%	PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019 863 -2.1%	3-BED VILLA 3,022,000	4-BED VILLA 3,673,000	5-BED VILLA 4,792,000
Jumeirah Village Circle (JVC)	ROI 6.4%	PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019 553 -1.8%	3-BED VILLA 1,662,000	4-BED VILLA 2,038,000	5-BED VILLA 2,225,000
Emirates Hills	ROI 3.5%	PRICE PER SQ.FT Avg. Price/sq.ftChange from H2 2019 1709 -7.6%	VILLA BEDS N/A: Emirates Hills has 6-beds and larger units. Refer to the writeup for more info.

In H1 2020, the family-friendly community of Arabian Ranches rose to become the most popular area for buying villas in Dubai. This established development is known for its gated villas, community lifestyle and convenient amenities such as supermarkets and pharmacies. The rise in Arabian Ranches’ popularity could reflect an increased need for bigger living spaces and private outdoor areas as residents continue to stay at home during the pandemic. It’s also evidenced in the average price-per-square-foot to buy villas in Arabian Ranches, which went up slightly from AED 880 in H2 2019 to AED 897 in H1 2020.

The average asking prices to invest in 3-bedroom villas in Arabian Ranches went from AED 2.33M to AED 2.29M, while sales prices for 4-bedroom villas went from AED 3.65M to AED 3.57M. On the other hand, average prices for 5-bedroom houses for sale in Arabian Ranches saw a slight increase, rising from AED 4.41M to AED 4.58M.

Palm Jumeirah is the second-most popular area for villas for sale in Dubai in the first half of 2020. The average sales price-per-square-foot for Palm Jumeirah villas remained largely steady, seeing a minor decline of 1.4%, from AED 2,142 to AED 2,113. The prices for buying villas in Palm Jumeirah average at AED 5.16M for 3-bedroom villas, AED 9.22M for 4-bedroom houses and AED 16M for 5-bedroom units.

Our analysis of Dubai property trends 2020 revealed that The Springs and Jumeirah Park, along with suburban communities such as The Villa, Dubailand, DAMAC Hills, Dubai Hills Estate and JVC, also ranked amongst the top areas for villa sales. The average price-per-square-foot in most of these areas have remained largely steady in H1 2020, experiencing minor declines between 1% to 4%.

However, the established neighbourhood of The Springs saw an increase in price per square foot, rising on average from AED 806 to AED 816. The affordability of The Springs villas for sale, combined with the increased interest from property seekers in villa communities, could have led to jump in sales prices. Similarly, the average price-per-square-foot in Dubailand has remained steady at AED 629.

Emirates Hills also ranked amongst the top 10 areas to buy villas in the Dubai real estate market. This prestigious villa community saw the price-per-square-foot decline by 7.6%, from AED 1,849 to AED 1,709 in H1 2020. According to our analysis of Dubai property trends in the first half of 2020, 6-bedroom houses in Emirates Hills are most popular with high-end buyers, averaging at AED 26.7M. This is followed by 7 and 5-bedroom homes, which have an average sales price of AED 38.1M and AED 20.5M respectively.

Al Reem is the most popular community to buy houses in Arabian Ranches

When it comes to buying villas in Arabian Ranches, Al Reem is the first choice for potential buyers and investors, according to Bayut’s Dubai real estate analysis for H1 2020. This popular sub-community offers cost-effective villas with state-of-the-art amenities such as swimming pools and parks. The prices to invest in 3-bedroom villas in Al Reem start from AED 1.5M, while Al Reem’s 4-bedroom houses for sale start from AED 1.79M.

The second-most popular sub-community for houses for sale in Arabian Ranches is Saheel, followed by Palmera, Mirador La Colleccion, Alvorada and Al Mahra.

Jumeirah Village Circle and The Springs have the highest ROI for villas in Dubai

JVC continues to offer investors the best rental yield in Dubai for villas, with an average ROI of 6.4%. This is closely followed by villas in The Springs, which yield an average ROI of 6%, according to Dubai property price trends in H1 2020.

Other areas that investors should consider for high ROI include Arabian Ranches, Jumeirah Park and Dubailand, which offer rental yields of around 5.5%.

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

Mirdif is the firm favourite for villa rentals in Dubai

Prices to Rent Villas in Dubai for H1 2020

POPULAR AREAS	3-BED VILLA Avg. Yearly RentChange from H2 2019	4-BED VILLA Avg. Yearly RentChange from H2 2019	5-BED VILLA Avg. Yearly RentChange from H2 2019
Mirdif	3-BED VILLA Avg. Yearly RentChange from H2 2019 93,000 -7.9%	4-BED VILLA Avg. Yearly RentChange from H2 2019 116,000 -4.1%	5-BED VILLA Avg. Yearly RentChange from H2 2019 124,000 -3.9%
Jumeirah	3-BED VILLA Avg. Yearly RentChange from H2 2019 152,000 -1.3%	4-BED VILLA Avg. Yearly RentChange from H2 2019 177,000 -0.6%	5-BED VILLA Avg. Yearly RentChange from H2 2019 223,000 0.0%
The Springs	3-BED VILLA Avg. Yearly RentChange from H2 2019 130,000 -4.4%	4-BED VILLA Avg. Yearly RentChange from H2 2019 157,000 N/A	5-BED VILLA Avg. Yearly RentChange from H2 2019 N/A
Arabian Ranches	3-BED VILLA Avg. Yearly RentChange from H2 2019 142,000 -0.7%	4-BED VILLA Avg. Yearly RentChange from H2 2019 194,000 -2.5%	5-BED VILLA Avg. Yearly RentChange from H2 2019 240,000 0.0%
Dubai Hills Estate	3-BED VILLA Avg. Yearly RentChange from H2 2019 129,000 -5.1%	4-BED VILLA Avg. Yearly RentChange from H2 2019 139,000 -8.6%	5-BED VILLA Avg. Yearly RentChange from H2 2019 169,000 -3.4%
Akoya Oxygen	3-BED VILLA Avg. Yearly RentChange from H2 2019 63,000 -8.7%	4-BED VILLA Avg. Yearly RentChange from H2 2019 79,000 -1.3%	5-BED VILLA Avg. Yearly RentChange from H2 2019 82,000 -8.9%
Umm Suqeim	3-BED VILLA Avg. Yearly RentChange from H2 2019 150,000 -3.2%	4-BED VILLA Avg. Yearly RentChange from H2 2019 184,000 N/A	5-BED VILLA Avg. Yearly RentChange from H2 2019 210,000 -1.4%
Al Barsha	3-BED VILLA Avg. Yearly RentChange from H2 2019 151,000 -2.6%	4-BED VILLA Avg. Yearly RentChange from H2 2019 170,000 -4.5%	5-BED VILLA Avg. Yearly RentChange from H2 2019 218,000 N/A
Reem	3-BED VILLA Avg. Yearly RentChange from H2 2019 91,000 N/A	4-BED VILLA Avg. Yearly RentChange from H2 2019 102,000 N/A	5-BED VILLA Avg. Yearly RentChange from H2 2019 N/A
Jumeirah Village Circle (JVC)	3-BED VILLA Avg. Yearly RentChange from H2 2019 106,000 0.0%	4-BED VILLA Avg. Yearly RentChange from H2 2019 116,000 -4.9%	5-BED VILLA Avg. Yearly RentChange from H2 2019 136,000 -0.7%
Not available due to low/no historical inventory or influx of off-plan properties

Bayut’s data on property trends in Dubai reveals that Mirdif retains the top spot for villa rentals in H1 2020, drawing tenants for its family-friendly environment and convenient amenities. The average cost for renting villas in Mirdif declined moderately, between 4% to 8% for different bed-types. The average rental cost for 3-bedroom villas in Mirdif went from AED 101k to AED 93k, while 4-bedroom houses went from AED 121k to AED 116k. The 5-bedroom rental houses in Mirdif have an average cost of AED 124k, down from AED 129k in H2 2019.

The established neighbourhood of Jumeirah, which is home to numerous attractions and leisure destinations, is also sought after by tenants for renting villas in Dubai. Similar to Mirdif, Jumeirah also offers spacious, independent houses, for which demand has likely increased since movement restrictions have been introduced across the emirate. The rental costs for villas in Jumeirah have remained largely stable in H1 2020. Prospective tenants can expect to pay an average of AED 152k for 3-bedroom houses, AED 177k for 4-bedroom villas and AED 223k for 5-bedroom homes.

Other gated communities such as The Springs, Arabian Ranches, Dubai Hills Estate, Akoya Oxygen and Reem, as well as older neighbourhoods such as Umm Suqeim and Al Barsha, have also drawn attention from renters for villas in Dubai. Overall, the average costs to rent villas in these popular neighbourhoods have decreased between 2% – 9%, according to our analysis of Dubai property prices. However, certain bed-types in Arabian Ranches, Jumeirah and Jumeirah Village Circle have seen rental costs remain steady in H1 2020.

Uptown Mirdif is the top area to rent villas in Mirdif

Uptown Mirdif continues to draw attention from prospective renters for houses in Mirdif, as per Bayut’s analysis of property trends in Dubai for H1 2020. This suburban community features spacious villas with a wealth of amenities and facilities.

Tenants can expect to pay a starting price of AED 75k for 3-bedroom villas in Uptown Mirdif, while 4-bedroom rental villas start from AED 80k.

Most popular areas with off-plan properties in Dubai

Top off-plan projects in Dubai for H1 2020

AREA	PROJECT	PROPERTY TYPE
AREA Akoya Oxygen	PROJECT Albizia	PROPERTY TYPE Plots, Villas & Townhouses
AREA Dubailand	PROJECT Rukan	PROPERTY TYPE Apartments, Villas & Townhouses
AREA Jumeirah Village Circle (JVC)	PROJECT Pantheon Elysee	PROPERTY TYPE Apartments
AREA Dubai Hills Estate	PROJECT Golf Place	PROPERTY TYPE Apartments & Villas
AREA Downtown Dubai	PROJECT Downtown Views II	PROPERTY TYPE Apartments
AREA Dubai South	PROJECT EMAAR South	PROPERTY TYPE Apartments, Villas & Townhouses
AREA Mohammad Bin Rashid City	PROJECT Sobha Hartland	PROPERTY TYPE Plots, Apartments, Villas & Townhouses
AREA Business Bay	PROJECT Aykon City	PROPERTY TYPE Apartments
AREA DAMAC Hills (Akoya by DAMAC)	PROJECT Veneto	PROPERTY TYPE Villas & Townhouses
AREA Palm Jumeirah	PROJECT Se7en Residences	PROPERTY TYPE Apartments

The off-plan market opens up Dubai’s real estate to a wider pool of buyers, offering attractive payment plans for luxury and affordable properties in upcoming developments. Albizia in Akoya Oxygen is the most popular off-plan project in Dubai, offering plots, villas and townhouses in an integrated community at affordable prices. The prices to purchase villas in Albizia starts from an affordable AED 760k.

Similarly, other upcoming suburban communities such as Rukan in Dubailand, located behind Arabian Ranches, which boasts apartments, villas and townhouses, offer a family-friendly lifestyle away from the bustle of the city, is sought-after by prospective landlords.

For those interested specifically in off-plan apartments in Dubai, the areas of JVC, Downtown Dubai, Business Bay and Palm Jumeirah have projects with luxury properties and affordable payment plans, to ease the financial burden of buyers.

For off-plan villas in Dubai, upscale communities such as Golf Place in Dubai Hills Estate and Sobha Hartland MBR City, as well as projects near the upcoming Expo site such as EMAAR South in Dubai South are popular with prospective buyers.

Please note that some of these areas have a mix of ready and off-plan properties due to phased handovers.

Commenting on the trends, Haider Ali Khan, CEO of Bayut, said:

“Over the past few months, the world has gone through a particularly challenging period, grappling with the effects of a global health emergency. But it has also been a time when the human race has proven its adaptability and willingness to step up to the challenge. In the UAE, we’ve seen both the people and the government rise to the occasion, take responsibility and change their lifestyles while working and learning from home. At the same time, Dubai’s property sector has also adapted and stayed resilient during the pandemic, with the brokerage community turning to innovative virtual tools to facilitate real estate activity and stay connected with prospective buyers and tenants. The combined traffic to Bayut and Dubizzle during the months of May and June were as high as 6.9M and 7.3M sessions respectively, pointing to growing interest in the real estate sector post the lockdown and trust for the advanced virtual property solutions provided by our platforms.

“The concept of a home has also perhaps evolved in the face of the pandemic, and property seekers now have different priorities when looking for their next home. On both Bayut and dubizzle, we have seen that there is sustained interest in the market, especially for established villa communities. Right from the initial phase of the restrictions in March 2020, we noticed over 42% increase in traffic for villas listed for sale on Bayut, which further increased by more than 25% in April. It’s easy to understand the appeal of such private homes in light of the heightened need for living arrangements with safe accessible outdoor spaces, irrespective of any lockdown. Overall traffic has also almost doubled since March 2020 with more and more people re-evaluating their housing choices.”

That concludes our Dubai property market analysis for H1 2020. Our detailed market report will help you understand property price trends in Dubai and identify the most popular neighbourhoods, best areas for rental returns and more. Before you make the move, make sure to read up on renters rights to save yourself from getting any unnecessary trouble.

Stay tuned to our Market Trends section for our Abu Dhabi, Sharjah and Ajman market reports for the first half of 2020!

Disclaimer: The above report is based on Dubai property 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.