Gulf Today, Staff Reporter

dubizzle’s much-awaited Dubai and Abu Dhabi Annual Property Market Report has revealed strong demand backed by high rental yields across both emirates. Primary data gathered by the leading property platform in the UAE from site visits and user behaviour throughout 2023 showcase positive trends across the board, driven by the UAE’s strong economic outlook and attractiveness as a place to live and work.

Commenting on the findings in the reports, Haider Khan, CEO of dubizzle, said: “Our 2023 Annual Property Market Reports for Dubai and Abu Dhabi not only highlight dubizzle’s leading position among real estate platforms but also shed light on the booming nature of the UAE’s leading property markets. It’s a well documented fact that 2023 has been a defining year for UAE real estate.

The data gathered from property seekers who generated over 77M page views for listings on dubizzle for Dubai and nearly 14M page views for Abu Dhabi in 2023, provides further evidence that the UAE’s property market is going from strength to strength. This high online engagement, coupled with the strong numbers shared by both DLD and DARI for transactions in 2023, reflects the prevailing positive sentiment in the market. We will have to wait and see how the market performs over the course of this year, however early indicators suggest that this positive sentiment will remain strong in 2024 as well.”

In 2023, Dubai’s real estate sector marked another prosperous year, with business-friendly policies attracting more tenants to the market.

The upward trends in the rental segment is welcome news for investors with a keen interest in the city, known for its attractive investment options, abundant employment opportunities and unique futuristic lifestyle.

The report highlights 2023 as the ‘Year of Affordable Villas’, with Dubai residents renting standalone homes in greater numbers. Affordable villa rentals increased by 16.64%, with DAMAC Hills 2 emerging as the most popular affordable area for villa rentals, with an average yearly rent of Dhs96,000. Other areas like Mirdif, JVC, and Dubailand also maintained a steady popularity, offering villas with annual rents below Dhs 200,000. Al Barsha, meanwhile, remained popular with those wanting larger, private spaces, boasting an average annual rental price of Dhs 388,000, followed by Jumeirah and the newer Dubai Hills Estate.

Dubai also witnessed some of the most significant rent increases in recent years, with areas like Dubailand and Al Barsha seeing the biggest spikes (42.54% and 31.08% respectively). JVC saw a rise of 32% in the average year rent for apartments, and Damac Hills experienced a substantial increase of 66.67% in annual rental prices.

The trend for luxury apartments held sway in 2023, with Dubai Marina maintaining its status as the top luxury area for apartment rentals, with average annual rents surging to Dhs 148,000. Business Bay and Downtown Dubai also saw substantial increases in average yearly rent for apartments. Business Bay witnessed the highest increase in average rental prices for luxury apartments, with a rise of 21.05%. Downtown Dubai became the third most popular area for apartment rentals, with an average annual rent of Dhs 214,000 in 2023, indicating a growing demand for high-end living in Dubai.

As per user search trends on dubizzle, DAMAC Hills 2 has emerged as the top area for affordable villas in Dubai, followed by Dubailand and Jumeirah Village Circle. Meanwhile, with an overall increase of 14.37%, Dubai Hills Estate has become the most-searched area among buyers interested in luxury villas.

The dubizzle Abu Dhabi Annual Property Rental and Sales Market Reports for 2023 similarly revealed an array of opportunities emerging for both renters and investors, highlighting an upwardly mobile year for the real estate sector in the UAE’s capital.

According to its rental market report, Abu Dhabi is the only emirate where popular areas registered rent decreases, making it an appealing destination for those looking for more affordable rents. Areas such as Al Mushrif, Al Raha Gardens, Yas Island, Khalifa City, and Al Khalidiya all experienced drops in rental prices.

Meanwhile, luxury living is making a mark in Abu Dhabi, with Al Reem Island witnessing a 5.33% increase in average annual rent for luxury apartments. This trend indicates a growing demand for high-end living spaces. Other areas, including Al Raha Beach and the Corniche Area, also saw significant increases in luxury apartment rentals, further solidifying the city’s appeal for luxury lifestyles. Yas Island and Saadiyat Island are also gaining traction for luxury apartment rentals.

The villa market in Abu Dhabi is on an upward trajectory as well. Al Raha Gardens, despite a slight decrease in average annual rent, remains a prime location for luxurious villas. In contrast, Mohammed Bin Zayed City saw a notable 7.87% increase in average annual rents for villas, marking it as an up-and-coming area for villa rentals.

The Corniche emerged as one of top areas of focus for luxury apartments in Abu Dhabi, with a staggering 15.91% rise in annual rent, reflecting its growing desirability as a central location at the heart of the city.