Dubai residents have been forced to move to the outskirts due to rising rents. Due to the growing price of rental units in Dubai, Many people are choosing to live in Jumeirah Village Circle (JVC). Residents looking for affordable housing in Dubai prefer to live in this area.
As a result, the community is booming and properties are significantly less expensive than those in other city neighborhoods. Bayut and Dubizzle report that rental costs are also increasing in JVC at a rate of 7% to 16%. In the UAE, the average cost of a studio apartment is AED 34K (USD 9K). The price of a one bedroom apartment was 48K (USD 13K), while the price for a two bedroom apartment was 70K (USD 19K).
Several of Dubai’s most popular areas, including Al Nahda, Bur Dubai, Business Bay, and Deira, experienced a 21% rise in prices for moderately priced apartments, while luxury apartments rose by 43%.
During the first half of 2022, several changes occurred in the region and throughout the world, according to Haider Ali Khan, chief executive officer of Bayut & dubzzle and head of EPMG MENA. Since Dubai is known for its safety and security, foreigners seeking to move to the emirate or make a profitable investment remain attracted to it. During his presentation, he stated that Bayut & Dubizzle held over 35 million sessions with property seekers interested in Dubai.
During the first half of 2022, several changes occurred in the region and throughout the world, according to Haider Ali Khan, chief executive officer of Bayut & dubzzle and head of EPMG MENA. Since Dubai is known for its safety and security, foreigners seeking to move to the emirate or make a profitable investment remain attracted to it. During Bayut & Dubzzle’s sessions with property seekers interested in Dubai, more than 35M sessions were conducted.
The rental prices in Mirdif have only increased by 7% since last year, making it one of the most affordable areas. Four- and five-bedroom villas in DAMAC Hills 2 have seen a rise in rental prices, while three-bedroom units have remained largely unchanged.
Rental units tend to be most popular in Dubai’s most prominent neighborhoods, like Dubai Marina and Al Barsha. Accordingly, Dubai Marina rentals are up between 16% and 22% compared to H1 2022. Approximately 24K USD was spent per year on one-bedroom apartments at Dubai Marina. AED 74K (USD 20.1K) per year was the starting price for four- to five-bedroom units in Al Barsha. Due to the rise in rental rates, Downtown Dubai has continued to attract tenants. A one-bedroom apartment in Downtown Dubai costs AED 105K (USD 29K), or 15% more than it did a year ago, while two-bedroom apartments cost AED 222K (USD 60K), or 43% more than it did a year ago.
Jumeirah is known for having premium properties, which makes it a popular choice for villa rentals. There was an increase between 14% and 17% in the price of three-bedroom villas per year, with the average cost of AED 200K (USD 54.5K). There are also Dubai Hills Estate, Umm Suqeim, and Arabian Ranches that are popular among villa seekers.
After falling for the first time in a year in July, Dubai’s real estate prices have become even more popular in terms of investment. There was an 8.04% increases in yields in Dubai Sports City units, while Dubai Marina and DAMAC Hills had a 6.97% rise and 6.53% rise in yields, respectively, in Dubai Marina and DAMAC Hills. For investors seeking premium properties to rent out, the Dubai Marina area has an ROI of 6.9%. For those seeking affordable Dubai real estate, Jumeirah Village Circle remains a top choice. A one-bedroom unit in JVC has a return rate of 7%, and residential properties in the area are affordable.