As the Dubai real estate market continues at an upward momentum this year, real estate management company AirDXB has released the 2023 market review which revealed key trends including annual market occupancy increases, stock decreases and top performing areas.
Short-let market
Dubai’s short-let market has witnessed a substantial surge, with annual revenues soaring by 14 percent year-on-year (YoY) to an impressive average of AED159,1000.
Occupancy levels also climbed by 21 percent YoY, reaching an average of 57 percent, outshining global counterparts such as Hong Kong, Singapore, and Monaco.
The period from February to September saw a dip in short-let stock levels as homeowners shifted towards the long-term rental market due to rising rental prices. This transition allowed those remaining in the short-let sector to command higher Average Daily Rates (ADRs), as demand outpaced supply.
However, a resurgence in stock levels during November and December, fueled by COP28, presented lucrative opportunities for individual private listings.
Top performing areas for the short-let segment
- Green Community West
- Dubai Silicon Oasis
- Jumeirah Lakes Towers (JLT)
- Dubai Creek
Long-term rentals
The long-term rental market in the emirate witnessed a dramatic increase in yields throughout 2023, positioning the city well ahead of its global counterparts.
Rental renewals outpaced new rental contracts by 5 percent in average value, suggesting that, for some residents, moving accommodation might have been a more cost-effective option.
Top performing areas for the long-term rental segment
| AREA | HIGHEST RENT (AED) | AVERAGE RENT (AED) | LOWEST RENT (AED) |
|---|---|---|---|
| Dubai Marina | 250,000 | 110,000 | 44,000 |
| Downtown Dubai | 1,350,000 | 30,000 | 57,600 |
| Palm Jumeirah | 350,000 | 175,000 | 85,000 |
| Jumierah Lakes Towers (JLT) | 175,000 | 85,000 | 55,000 |
| Business Bay | 1,450,000 | 99,999 | 48,000 |
Most affordable areas for long-term rentals
| AREA | HIGHEST RENT (AED) | AVERAGE RENT (AED) | LOWEST RENT (AED) |
|---|---|---|---|
| Al Furjan | 110,000 | 65,000 | 43,000 |
| Jumeirah Village Circle (JVC) | 1,350,000 | 70,000 | 36,000 |
| Arjan | 138,000 | 67,400 | 46,000 |
| Al Warsan | 78,000 | 44,999 | 32,999 |
| Dubai Silicon Oasis | 609,000 | 54,995 | 39,999 |
| Dubai Sports City | 160,000 | 53,000 | 40,000 |
| Discovery Gardens | 70,000 | 55,000 | 39,000 |
Dubai: Affordable real estate, soaring transactions
The emirate continues to be one of the most affordable cities globally for real estate, particularly evident in the costs of purchasing an average one-bedroom apartment in the city center.
Transaction volumes and values experienced a significant spike in 2023, with March witnessing the highest number of sales at 12,157. December, on the other hand, marked the pinnacle in total sales value at AED41.3 billion. The mortgage market also flourished, showing a 30 percent YoY increase.
Top areas for property purchases included JVC, Business Bay, Dubai Marina, JLT, and Dubai Creek. Notably, 59 percent of all sale transactions were for off-plan properties, indicating that buyers are actively seeking deals and value in emerging developments.
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