Discover the most sought-after areas for real estate in Dubai during the first quarter of 2024

Real estate prices in Dubai witnessed significant jumps during the first quarter of 2024, followed by relative stability in areas that had seen increases during the last quarter of the previous year, while other areas recorded varying rates of increase and decrease.

According to specialized reports, the most sought-after areas in Dubai recorded increases in apartment and villa purchase prices by different rates, reaching up to 7% in some cases during the first quarter of 2024.

What about the low and middle price categories?

Regarding properties within the low price category, data showed a noticeable demand from investors to purchase properties in areas like "International City," "Dubai South," "Damac Hills 2," and "Dubai Land."

On the other hand, those looking for properties within the middle price category showed significant interest in areas like "Jumeirah Village Circle," "Jumeirah Lakes Towers," "Al Furjan," and "The Springs."

Meanwhile, those looking for luxury properties during the first quarter of 2024 preferred to invest in areas like "Dubai Marina," "Business Bay," "Arabian Ranches," and "Dubai Hills Estate."

Where are the prices heading?

The most sought-after areas for buying low-priced apartments saw a decrease in sales transactions ranging from 1% to 16%, except for Dubai South, which recorded an increase of about 4.48%.

Conversely, low-priced villas saw an increase ranging from 7% to 62%, with Dubai Land achieving the highest increase.

As for middle-priced properties, apartment prices saw a significant increase ranging from 6% to 42%, with Jumeirah Lakes Towers achieving the highest increase.

Similarly, villa prices increased by about 5% to 14%, except for Al Furjan, which saw a slight decrease of about 0.37%.

Luxury properties saw most areas recording an increase in sales prices ranging from 2% to 23%.

What are the expected returns on investment?

And not to forget the return on investment, based on expected rental returns for apartments, areas like "Dubai Investment Park," "Discovery Gardens," and "Liwan" emerged as the most attractive options for investors, achieving investment returns of up to 11%.

Within the middle-priced apartment category, data from the "Bayut" website showed that areas like "Dubai Sports City," "Dubai Silicon Oasis," and "Motor City" generate returns of up to 10%. Conversely, areas like "Green Community," "Al Sufouh," and "Damac Hills" stand out as the most attractive areas for those looking for luxury apartments, achieving returns exceeding 8%, outperforming most global markets.

As for the returns on investment in Dubai villas, data showed that villas and townhouses in International City achieve returns exceeding 7%, while areas like "Damac Hills 2" and "The Valley Dubai" achieve returns exceeding 6%. Additionally, investment returns for middle-priced villas in "Jumeirah Village Triangle," "Jumeirah Village Circle," and "Mudon" range between 6% and 8%.

Within the luxury villa category, the Sustainable City in Dubai achieves an investment return exceeding 7%, thanks to the advantages it offers and the limited supply in the real estate market, while both Al Barari and Tilal Al Ghaf generate investment returns of up to 6%.

The number of real estate sales transactions in Dubai during the first quarter of 2024 reached 36,946 deals, whether residential or commercial properties, with a total value of 109.6 billion dirhams, according to the Dubai Land Department.

What are the most sought-after areas for rent?

Search trends showed that those looking for low-priced apartments prefer to live in areas like "Deira" and "Al Nahda," while "Damac Hills 2" and "Mirdif" attracted those looking for low-priced villas.

Meanwhile, "Jumeirah Village Circle" and "Bur Dubai" were the most sought-after for renting middle-priced apartments, while "Jumeirah Village Circle" and "Arabian Ranches 3" were the most sought-after for renting middle-priced villas.

Within the luxury property category, "Dubai Marina" and "Business Bay" were the most sought-after areas for renting apartments, while those looking for villas preferred areas like "Dubai Hills Estate" and "Al Barsha."

Edited by: Imtilak Real Estate©