Affordable apartments in areas like Dubai Investments Park (DIP) and Discovery Gardens stood out in 2024, delivering some of the highest rental yields.
Dubai’s real estate sector experienced another record-breaking year, achieving a remarkable 180,900 transactions valued at $142.1 billion. Prices in popular neighborhoods continued to climb, supported by strong demand and consistent availability of new inventory.
A mix of government policies, economic growth, and rising global interest—particularly from high-net-worth individuals—has fueled Dubai’s real estate boom. The city’s emphasis on sustainable and technologically advanced developments has only added to its global appeal.
Together, these factors position Dubai’s real estate market among the world’s best for investment, with some of the highest returns on investment globally.
Dubai’s ROI Trends in 2024
According to Bayut’s latest market report, affordable apartments in areas such as DIP, Discovery Gardens, and Liwan offered impressive rental yields of 9% to 11%. Mid-tier communities like Living Legends, Motor City, and Al Furjan delivered returns exceeding 8.7%, while luxury apartments in Al Sufouh, Green Community, and Al Barari saw rental yields between 7% and 9%.
For villa investments, affordable areas like Dubai Industrial City, International City, and DAMAC Hills 2 recorded returns above 6%. Mid-range villa communities such as Jumeirah Village Circle, Al Furjan, and Jumeirah Village Triangle achieved yields of 6% to 8%. Meanwhile, luxury villa communities like The Sustainable City, Al Barari, and Tilal Al Ghaf delivered ROIs above 6%.
Investor Preferences in Property Buying
Bayut’s data also revealed significant price increases in both apartment and villa markets. For instance, villas in Arabian Ranches saw prices surge by up to 56%.
Investors seeking affordable options gravitated toward neighborhoods such as Dubai Silicon Oasis, Dubai Sports City, DAMAC Hills 2, and Dubailand. Mid-range buyers favored Jumeirah Village Circle, Business Bay, Al Furjan, and The Springs, while luxury investors targeted Dubai Marina, Downtown Dubai, Dubai Hills Estate, and DAMAC Hills.
Dubai’s dynamic real estate environment—featuring lucrative off-plan projects, robust rental yields, and strong potential for long-term capital growth—continues to attract investors worldwide.
With the expat population expected to exceed 4 million by 2025, demand for housing is expected to remain strong, presenting exciting opportunities for real estate investors.
Property Prices on the Rise
Dubai’s property prices saw significant growth last year. Transaction prices for affordable apartments increased by up to 26%, while villa prices more than doubled in some areas, with Dubailand leading the surge due to its appeal to budget-conscious buyers.
In the mid-range segment, both apartments and villas experienced price growth of 7% to 40%, with Jumeirah Lake Towers (JLT) standing out as inventory prices were adjusted upward to meet the increasing demand for centrally located apartments.
The luxury property market also saw price hikes of 7% to 31%, with Dubai Hills Estate recording the most significant increases.
Rental Market Trends
Rental prices across Dubai’s real estate market rose sharply in response to growing demand. Affordable apartment rents increased by up to 48%, with 2-bedroom flats in Deira experiencing the largest hikes.
Mid-tier apartment rents grew by as much as 41%, particularly in high-demand areas like JLT. Luxury apartments saw rental increases of 5% to 25%.
For villas, affordable rentals rose by 44%, while mid-tier villa rents surged by 45%, driven by demand for 4-bedroom units in suburban, self-sustaining communities like Town Square. Upscale villa rentals saw the steepest increases, with prices climbing by up to 60% in neighborhoods such as Jumeirah.
For 2024, the most sought-after areas for affordable apartment rentals included Deira and Bur Dubai, while DAMAC Hills 2 and Mirdif were preferred for villas. Mid-tier renters favored Jumeirah Village Circle (JVC) and Business Bay for apartments, and JVC and Town Square for villas.
Luxury apartment seekers continued to prioritize Dubai Marina and Downtown Dubai, while Dubai Hills Estate and Al Barsha remained top choices for luxury villas.
Across the board, rental prices increased by 5% to 19% in affordable areas, with mid-tier and luxury segments seeing rises of up to 16%.
