According to Bayut & dubizzle, budget-friendly apartments witnessed an uptick of up to 24%, whilst the rental value of luxury units grew by 24–54%. When it came to villas, affordable properties recorded a growth of 2-23%, whereas rental rates for prime units increased by a whopping 54%.
The most popular budget-friendly accommodation options included Jumeirah Village Circle and Bur Dubai for apartments, whereas affordable villas were in great demand in DAMAC Hills 2 and Mirdif. In the upscale segment, Dubai Marina and Business Bay maintained their leading positions, and Al Barsha and Jumeirah were popular with those seeking to rent high-end villas.
If you are interested in buy-to-let properties, you will be keen to learn that Dubai International City offered an impressive ROI of 9.22% for affordable apartments last year (2022). At the same time, Dubai Marina is a worthy option for investing in luxury apartments, since it offered a 7.04% rental yield – the highest in Dubai. The most attractive rental returns for budget-friendly villas/townhouses were recorded in Jumeirah Village Circle, with 6.9%, while DAMAC Hills had the highest project ROI of 6.95% for upscale villas.
As a result of an influx of HNWIs, the upscale market is set to witness higher rental values, since the supply is insufficient to satisfy the demand. Most of the upcoming handovers are located in affordable areas, and there will be very few villa/townhouse communities completed this year. As a result, rental rates of well-located properties, especially larger ones, will continue to grow during this year (2023), and in particular, beachfront units, residences with skyline views and gated communities will be in strong demand.
