Bayut, the UAE property portal has released its 2022 report showing the trends across buying and renting residential property in Dubai.
Key findings show the trend of increasing prices has continued throughout 2022, with the prices of buying a villa or apartment in key Dubai neighbourhoods increasing by 24%.
Dubai Marina has been the most popular choice in terms searches for buying apartments in Dubai, leading to am increase of 11.62% in the average price per square foot in 2022. Other areas including Downtown Dubai, Business Bay, Jumeirah Beach Residences and Palm Jumeirah have seen price per square foot increases of up to 15%, and apartments in Jumeirah Village Circle (JVC) have seen increases of 7.25%, with the average price per square foot at Dhs 896.
In terms of villas, the most searched for area has been Arabian Ranches where the average price per square foot of a villa in this established community increasing by 8.36% to being Dhs 1,241. New communities such as Dubai Hills Estate have also seen a high level of interest and where the average price per square foot for a villa increased by 17.3% to Dhs 1,541.
More affordable areas such as DAMAC Hills 2 and JVC have also seen increases with the price of a villa in DAMAC Hills 2 averaging Dhs 626 er square foot, an increase of 2.96%, and the average price of a villa in JVC increasing by 10.2% to Dhs 660.
The rental market has also seen some significant increases in the luxury areas as well as affordable areas. The average cost of renting an apartment in JVC has increased by 24%, where a studio averages Dhs 31,000 per year, a one bedroom apartment Dhs 51,000 per year and two bedroom apartment Dhs 73,000 per year.
Apartments in Bur Dubai, Al Nahda, Dubai Silicon Oasis and Deira have also increased by up to 19%
In the sought after Dubai Marina the average rental price of an apartment has increased by 39% with the average rent of a one bedroom at Dhs 91,000 and a two bedroom at Dhs 140,000.
Areas including Business Bay, Downtown Dubai and Palm Jumeirah have seen rental increases of 24% and up to 54% in the new community of Dubai Hills Estate.
Villas have also seen increases on average rents across all major communities, with DAMAC Hills 2, one of the most searched for communities, seeing average rents increasing by 9% for 3 and 5 bedroom villas and 5.4% for 4 bedroom villas to an average annual rent of a Dhs 74,000.
Al Barsha has been a popular search for luxury villas with rental costs increasing by 27% and the average rent for a 4 bedroom villa rising to Dhs 220,000, Dhs 303,000 for a 5 bedroom and Dhs 414,000 for a 6 bedroom villa..
Due to a rise in demand for 4 bedroom villas in Jumeirah leading to a shortage of availability, the average annual rent has increased by 54% to Dhs 273,000, with 5 bedroom villas averaging Dhs 331,000 and 6 bedroom villas Dhs 460,000.
Villas in newer communities like Dubai Hills Estate and Arabian Ranches 2 have seen average rental increases of 29%.
The real estate market has boomed in Dubai during 2022 with the Dubai Land Department (DLD) announcing that Dubai recorded 97,466 residential property sales throughout the year, worth a total of Dhs 265.6 billion, an increase of over 50% in terms of both volume and value compared to 2021.
Haider Ali Khan, Chief Executive Officer of Bayut and dubizzle commented, "The demand for real estate in the city has continued to rise, as evidenced by the transaction data released by the DLD, showing both value and volume have increased by 50% year-on-year." Ali Khan continued, "I see Dubai continuing to consolidate its position as a destination of choice and making expectations from 2023 very exciting."