Dubai’s popular residential areas record hike in price, demand

Jumeirah Village Circle, Business Bay, and Dubai Marina are the most preferred areas to buy property in Dubai as the market remains on track for a strong first quarter with February proving to be a record-breaking month with a total of 8,515 transactions, real estate analysts said.

Damac Lagoons, Arabian Ranches 3, Al Yelayiss 2. Nad Al Sheba First, and The Valley remained popular among villa buyers while for apartments JVC, Dubai Marina, Business Bay, and Dubai Creek Harbour are the preferred choice, according to Zoom Property Insights.

Jumeirah, Palm Jumeirah, and Downtown Dubai recorded the highest increase in the apartment market while Palm Jumeirah, Emirates Hills, and Jumeirah recorded the highest jump in terms of price per square foot for villas.

The off-plan market is driving Dubai real estate as it recorded a little over 78 per cent increase in sales. In comparison, the secondary market jumped by 18.8 per cent, Zoom Insights report said.

The Insights data also disclosed that a total of 17,741 transactions had been recorded so far in 2023. In terms of price, the market witnessed a 10.5 per cent and 11.5 per cent increase in January and February, respectively.

HNWIs key factor

Ata Shobeiry, CEO of Zoom Property, credited the rising demand and increased interest from HNWIs as the major reasons for the high performance of Dubai real estate. “Despite facing global challenges in the form of inflation, the Dubai property market continues its upward trend, attracting foreign investors and HNWIs. Going by the recent trends, both the prices and demand are expected to increase as the year progresses,” he said.

The average price per square foot for apartments has reached Dh 1,211, while for villas, it is recorded at Dh1,432. The highest sale transactions were recorded in Damac Lagoons, Arabian Ranches 3, and Al Yelayiss 2. Nad Al Sheba First and The Valley also gained popularity among villa buyers in February 2023.

In terms of price per square foot, Jumeirah, Palm Jumeirah, and Downtown Dubai recorded the highest increase for apartments with Dh2,388, Dh2,311, and Dh2,278, respectively. For villas, Palm Jumeirah (Dh4,309), Emirates Hills (Dh2,428), and Jumeirah (Dh2,325) recorded the highest jump in terms of price per square foot.

“With several new developments launched in recent times, the Dubai property market continues to grab the attention of HNWIs and foreign investors and pose tough competition for other advanced metropolises. I am hopeful that this upward trend will continue throughout the year, making it another record-break year for Dubai real estate.”

Top performing areas included Jumeirah Village Circle (with nearly 1,000 transactions worth Dh774 million), Business Bay (with 770 transactions worth Dh1.327 billion), and Dubai Marina (with 767 transactions worth Dh2.727 billion) are the top areas to buy property in Dubai, according to the Zoom Property Insights for February 2023.

Rising demand

Madhav Dhar, co-founder, and COO of ZaZEN Properties, said the UAE’s real estate sector is fuelled by expats who are looking to stay in the country long term. Data shows that in February, 41 per cent were searching for one-bedroom units while 33 per cent were looking for two-bedroom units.

“We have seen similar trends with our flagship development ZaZEN One which launched last year and sold out in 6 months, as well as in our most recent project ZaZEN Gardens in Al Furjan, near the Gardens metro, which has been very well received.”

According to ZaZEN, Dubai’s residential market witnessed a 43.8 per cent increase in demand last month with 9,020 sales transactions compared to 6,310 in February 2022. The off-plan market has been a driving factor in fuelling the UAE’s real estate growth.

Off-plan transactions in Dubai grew 77.8 per cent year-over-year in February 2023. Over 4,500 transactions were registered, compared to 2,533 in the same period last year. The growth of this segment kept with its trend of underpinning the strength of Dubai’s overall real estate market.

— issacjohn@khaleejtimes.com

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