Dubai and Abu Dhabi Real Estate Market Booming

A new study shows that demand for property in Dubai and Abu Dhabi is increasing. Rental yields are high. The resilient real estate sector offers investors, residents, and tourists opportunities.

The study is by a major property platform, dubizzle. It looks at 2023 data on on-site visits and user behavior. The findings are positive, driven by a strong economic outlook in the UAE. Dubai and Abu Dhabi remain attractive places to live and work.

Over 77 million page views were logged on dubizzle for Dubai listings. Almost 14 million were for Abu Dhabi. This shows the property market is strengthening.

2023 was the “Year of Affordable Villas” in Dubai. More people rented standalone homes. Demand for affordable villas went up 16.64%. Damac Hills 2 was most popular for rental villas under Dh100,000. Areas like Mirdif, JVC, and Dubailand also saw steady interest for villas under Dh200,000.

Al Barsha remained popular for larger villas, at over Dh300,000 per year. Jumeirah and Dubai Hills Estate were also desired locations. Rent hikes were seen in Dubailand (42%) and Al Barsha (31%). Luxury flats were still in demand. Dubai Marina’s average rent hit Dh148,000. Downtown Dubai and Business Bay also saw rental growth of over 20%. Downtown became the third most sought-after area for apartments.

Jumeirah Village Circle led in affordable flats. Dubai Silicon Oasis and International City followed. Luxury units in Dubai Marina, Business Bay, and Downtown grabbed attention. Some areas had returned over 9%.

In Abu Dhabi, rents fell in places like Al Mushrif, Al Raha Gardens, and Khalifa City. This makes the emirate attractive for affordable housing.

But luxury living is emerging in Abu Dhabi too. Al Reem Island saw a 5% rise in luxury flat rents. More growth was seen in Al Raha Beach and the Corniche. This indicates growing demand for high-end spaces.

For returns, Abu Dhabi led the way. Al Mariyah Island returned over 10% for luxury units. Affordable flats in Al Reef gave 8%. Masdar City and Al Ghadeer also offered good returns. Hydra Village topped in affordable villas at nearly 7%.

The data shows booming Dubai and Abu Dhabi property markets. Prices are rising but returns remain healthy. More demand is expected going forward.