A Look at the Dubai Real Estate Market
Brokers are saying that prices for both apartments and villas have gone up in good percentage in some of Dubai's demanding areas. For example, in Q3 2024, villa costs in Arabian Ranches went up by around 13% which is high. People looking for cheap homes and those who have a property are becoming more interested in places like International City, Dubai South, DAMAC Hills 2, and Dubailand.
Several people in the middle price group have kept looking for houses in areas like Jumeirah Village Circle, Jumeirah Lake Towers, Al Furjan, and Reem. Investors in costly homes have been interested in places like Dubai Marina, Business Bay, DAMAC Hills, and Dubai Hills Estate.
The transactional prices for affordable apartments in places that get a lot of searches have gone down by up to 11%. On the other hand, the transactional prices for villas in Dubailand went up by about 20% because more people want to buy houses that look good. In the middle section, the prices of apartments and villas have gone up by as much as 8%. The prices of luxury homes have also been going up steadily, with selling prices going up by 3% to 31%. Dubai Hills Estate has seen the biggest price rises.
As we said in the start, the Dubai Land Department (DLD) and other studies show that more than 48,000 properties were sold in Q3 2024 that are worth about AED120bn ($32.7bn). If we look at the different types of properties, more than 16,000 of these deals came from the ready-to-move-in houses and were worth more than AED51bn ($13.9bn). On the other hand, more than 32,000 deals came from off-plan properties worth more than AED70bn ($19.1bn).
People who have bought apartments with attractive pricing in Dubai Investments Park (DIP), Discovery Gardens, and Liwan have said that they got more returns on their money, with rates between 9% and 11%. In the middle group like Dubai Sports City, Dubai Silicon Oasis, and Town Square all offer good returns of more than 8.6%. Places like Al Sufouh, DAMAC Hills, and World Trade Centre have given returns of 7% to 9% for modern apartments, which is more than several global markets.
When it comes to other cheap houses, DAMAC Hills 2, International City, and Serena all offer returns above 6%. ROIs starts from 6% to 9% for mid-size house communities like Jumeirah Village Circle, Dubai Sports City, and Jumeirah Village Triangle. In the luxury market, Al Barari and Tilal Al Ghaf offer returns of more than 6%, while Jumeirah Golf Estates and Al Barari also offer returns of up to 6%.