Centric to Bur Dubai, Deira, Barsha
Dubai’s real estate market performance has been on the rise over the past 12 months, with booming demand for buying and leasing villas. Valustrat reports that the primary cause for the surge in real estate transactions from Q3 2020 onwards is the UAE’s efficient and successful Covid-19 response, as well as innovative government initiatives, which boosted buyer confidence and attracted overseas investors.
The first quarter of 2021 reflected the positive market sentiment that we’ve continued to witness throughout the year; villa transactions rose by 137% when compared to the same period last year. These soaring villa prices have been a predominant housing trend across Dubai’s communities. Property buyers and tenants are seeking out larger living spaces on account of the rise in remote work for residents, as well as foreigners who have traveled to the city in search of day-to-day freedom alongside regulated health & safety practices.
The neighbourhood of Al Barsha is among those displaying this trend—Property Monitor reported that the average residential rental price in Al Barsha climbed steadily from the end of this year’s second quarter, particularly in the villa/townhouses sector, where demand is booming for 5- and 4-bedroom villas.
In certain communities, magnified tenant demand is focused on larger properties and comprises villas more so than apartments. Property Monitor’s records indicate that the average residential rental price in Bur Dubai for 2-bedroom apartments has steadily lowered from 71,923 AED in Feb 2021 to 62,806 AED in August 2021. Meanwhile, the average value for rental transactions for villas rose to 200,000 AED in August 2021 after a temporary dip to 122,500 AED in May 2021, and 4-bedroom villas are attracting the highest demand as of July 2021.
The historic community of Deira demonstrated a comparatively stable fluctuation in property rental prices between Q2 and Q3, revealing itself as a reliable choice for prospective tenants. According to Property Monitor’s records, the average rental price for a 2-bedroom apartment in the residential neighbourhood only rose from 57,688 AED in March 2021 to 58,617 AED by August 2021. Similarly, the average rental price for a 5-bedroom villa climbed from 118,333 AED to 120,000 AED in the same time frame.
Although the villas/townhouse sector garnered mass interest, tenants city-wide are still seeking rental opportunities in apartments, and the volume of rental transactions continues to escalate in various neighbourhoods as 2021’s third quarter progresses. DLD reported that in July 2021, Al Barsha Fourth alone registered 183 apartment transactions, totaling 119,001,712.81 AED in value—an increase from 163 recorded transactions in June 2021.
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