The Dubai Property Market Report for Q1 2023 revealed the most searched areas in the emirate’s real estate sector, indicating that prices in the industry have increased across popular neighbourhoods, favouring sellers and landlords. Downtown Dubai, known for its luxury apartment rentals, observed a spike in rentals following the handover of the Burj Royale units.
Other areas popular among potential tenants in search of luxury apartment rentals included the Palm Jumeirah and Mohammed Bin Rashid City, which witnessed noticeable increases in rental costs, particularly for three-bedroom units, which were further buoyed by a limited inventory.
Further down Sheikh Zayed Road, Dubai Marina also witnessed an appreciation in rental costs by nearly 39 percent. According to Bayut, in Q1 2023, the asking rent for apartments in Dubai Marina averaged at AED 91,000 for a one-bedroom unit, AED 139,000 for a two-bedroom and AED 207,000 for three-bedroom units. The real estate market report also reported a spike in luxury villa rentals across popular neighbourhoods in Dubai, which witnessed significant appreciations in annual costs during Q1 2023.
Umm Suqeim emerged as the top choice for luxury villa rentals in the emirate, with properties there experiencing upticks of 25 percent to 50 percent across all bed types. In Q1 2023, the average rent stood at AED 271,000 for a four-bedroom, AED 315,000 for a five-bedroom and AED 474,000 for six-bedroom units.
Neighbouring Jumeirah remained a favoured option for high-income tenants. The asking rents for villas appreciated up to 54 percent. During Q1 2023, the rental costs for four-bedroom houses in Jumeirah averaged AED 273,000. The five-bedroom houses were rented out for AED 331,000, whereas the six-bedroom houses were priced at AED 460,000.
Dubai Hills Estate, Palm Jumeirah and Arabian Ranches 2 also reported price increases from 5 percent to 89 percent, with landlords pricing their properties higher to benefit from increasing demand. The highest appreciation in rental costs was recorded for properties in Dubai Hills Estate.
