Dubai Property Price in 2019: Embracing New Developments

The Dubai real estate market experienced a significant increase in transactions thanks to favorable prices and lucrative investment opportunities. As Dubai was getting ready for the highly anticipated Expo 2020, the real property sector was attracting a boost in interest from local and foreign buyers.

Market Overview

In 2019, the Dubai real estate market recorded more than 40,000 property transactions in the sales sector, totaling AED 81.03 billion. This was a substantial improvement compared to prior figures, which were AED 73.08 billion recorded in 2018, indicating a rise in confidence among buyers and investors. 

The market was shifted toward the primary, off-plan market, which saw close to 15,000 transactions in sales, as opposed to close to 14,000 on the second market.

Dubai Marina emerged as the most sought-after location for purchasing apartments in 2019. The price per square foot fell by 11.8 percent, making it a popular investment opportunity. The sector recorded 3,369 transactions valued at AED 8.07 billion, up from 2,526 transactions in 2018.

Other Popular Areas

• Downtown Dubai Downtown Dubai is the second most sought-after district and the most sought-after area, with the cost per square foot dropping by 9.5 percent.
• Palm Jumeirah: Despite a 16.6 percent decrease in the prices per square foot, it was a feature for those looking for luxury property.

Dubai Property Price in 2020: Pandemic's Impact

The pandemic would affect the global property market, and Dubai was no different. However, the market swiftly adjusted by creating virtual solutions to ease property sales. In the second half of 2020, we were awash with announcements that boosted confidence in investors.

General Market Trends

Despite initial forecasts of significant drops, Dubai property prices remained attractive for investors and buyers as most regions experienced modest declines of less than 10 percent. 

According to data from the Dubai Land Department, there were 20,716 transactions for residential properties within the emirate in 2020. 

Mainly, villa sales showed higher stability, indicating a boom in demand for larger living spaces after the aftermath of the social distancing policies.

Moderate Decline in Apartment Prices

In general, prices for apartments in Dubai saw moderate declines of less than 10% by 2020 in the most sought-after areas. Jumeirah Village Circle had the lowest decline of 6.1 percent, decreasing prices from AED 878 to AED 825 per square foot. 

Similar to the prices in Jumeirah Lake Towers, they declined by 10.8 percent to AED 830 sqft.

More affordable areas like Dubai Silicon Oasis and International City remained favorite apartment options, with prices falling under 13 percent. 

The prices in more expensive areas, such as Business Bay, fell by 9.4 percent, probably because homeowners kept prices competitive.

Within the communities, Seasons remained the most desired project in JVC. Investors favored International City, which offered the most lucrative rental yield at 8.5 percent. For apartments with a luxurious feel, Dubai Marina, Downtown Dubai, and Palm Jumeirah saw moderate price adjustments, but they were still top picks with yields of more than 5%.

Stable Performance of Villa Prices

Prices for villas rose significantly in 2020 compared to apartments, and the most sought-after areas saw a lower than 5% drop. 

Dubailand remains the excellent option for cheap villas in 2020, dropping prices by just 2.4 percent to AED 636 per square foot. The Springs, another long-standing preferred choice, experienced a modest 1.9 percent decrease.

In the same way, hotspots for luxury villas such as Arabian Ranches experienced a marginal 1.8 percentage decrease, with average prices remaining at AED 873 sq ft. Newer projects, like Dubai Hills Estate and Palm Jumeirah, also saw only a modest 4-4.5 percent reduction.

In Dubailand, Falcon City attracted the most attention and enthused buyers, while Al Reem emerged as the most popular community within the Arabian Ranches. The relatively stable price, especially within the villa section, reflects the increased demand for larger homes during the pandemic.

Dubai Property Price in 2021: Continue Recovery

Following the Covid pandemic in the year following the Covid pandemic, Dubai property market witnessed an increase in 2021. When the city emerged from the worldwide pandemic, the strategic planning of Dubai and a robust economic climate-fueled this impressive growth.

Record-Breaking Transactions

In 2021, Dubai's real estate market saw more than 84,196 transactions with an estimated value of AED 300 billion. 

This was the most significant annual increase in the market's history, indicating a 66.3 percent rise in the volume of transactions and a 72 percent boost in value compared to 2020.

Break Down

• Sale Transactions: Property valued at AED 151.07 billion was sold over the year, surpassing records for the past 12 years.
• Off-Plan vs. Secondary Market: 59.6 percent of transactions were for ready/secondary properties, whereas 40.4 percent were Off-Strategy properties.

Market Dynamics and Trends

Increased Demand for Secondary Properties

The secondary market experienced significant growth, with 36,480 properties sold for AED 105.56 billion. This is the highest second-hand transaction value since 2008 due to the increased demand for ready-to-move-in homes.

Surge in Off-Strategy Sales

The market for off-plan properties also saw a rise, with 24,761 properties purchased, valued at AED 45.5 billion. The rise was most evident in Q4 2021 when off-plan sales reached their highest value and volume since Q1 2010.

Popular Areas for Investment

Apartments

Dubai Marina and Downtown Dubai were popular options for people looking to buy apartments. Despite the price fluctuation, these locations remained popular for investors due to their location and amenities.

Villas and Townhouses

The demand for townhouses and villas was up, with places like Arabian Ranches in Dubai and Palm Jumeirah seeing increased interest. The move towards more spacious living spaces was a significant trend in 2021.

Dubai Property Price in 2022

Following the same trend as last year that was seen in the previous year, the Dubai real estate market saw an exponential increase in 2022, with prices for villas and apartments increasing dramatically. As per the Dubai Land Department, 97,466 sales transactions amounted to AED 265.6 billion, an all-time high for the industry.

Key Highlights

• Transaction Volume: 97.466 sales transactions, a sign of a growing market.
• Revenue Value of AED 265.6 billion shows the strength of the market and investors' confidence.

Affordable Comparative. Luxury Segments

The market witnessed significant expansion across budget and premium segments, and distinct trends emerged.

Affordable Apartments

Jumeirah Village Circle (JVC) remained the top choice for affordable apartments, with a 7.25% increase in the average price per square foot, reaching AED 896. Investors can expect to spend around AED 490k to rent studio homes, AED 708k for one—or two-bedroom flats, or AED 1.07M for two-bedroom flats.

Jumeirah Lake Towers (JLT) also experienced a boost of 10.9 percent, which makes it the preferred option for investors with a tight budget.

Luxury Apartments

Dubai Marina continued to capture investor interest in luxury apartments, with an 11.6% rise in average price-per-square-foot, reaching AED 1,501. 

Downtown Dubai retained its appeal as prices increased by 14.7 percent to reach AED 2,239 per square meter. These areas also yielded lucrative yields, with Dubai Marina yielding the highest rental yield of 7.04 percent.

Transitioning to Villas

Villas are in high demand. Demand grew in 2022, indicating the shift to spacious living spaces in luxurious and affordable categories.

Affordable Villas

DAMAC Hills 2 emerged as the most popular choice for affordable villas, with a 2.89% increase in price-per-square-foot to AED 626. 

The median price for 3-bed homes was AED 1.12M, compared to the average for 5-bed and 4-bed homes, which were 1.45 and 1.45M and AED 1.92M, respectively. Jumeirah Village Circle attracted investors with small budgets, with a 10.17 percent boost in sales prices for each square meter.

Luxury Villas

Dubai Hills Estate and Arabian Ranches were top options for buyers of luxury villas. Dubai Hills Estate recorded a sale volume of 2,536 transactions totaling AED 12.5 billion. 

These properties provided lavish living and guaranteed huge returns on investments.