The real estate market in Dubai has been demonstrating an outstanding performance lately, with strong yields and growing property prices. This can be clearly seen in the Dubai Property Market Report by Bayut, which also revealed the top searched neighbourhoods in the emirate, and the areas with the highest returns in Q1 2023.

According to the DLD, in the first three months of 2023, the emirate registered 30,767 residential real estate sales deals worth AED 87.9B (USD 23.9B). Sales values grew by 24% and rental rates of luxury villas increased by 89%.

Dubai Marina was the top most popular area for luxury apartments, as reported by Bayut. The average price per sq. ft here went up by 12.5%, amounting to AED 1,529 (USD 416) during Q1 2023.

Palm Jumeirah was the top choice for upscale villas in Dubai. The price per sq. ft here rose by 23.3%, averaging at AED 3,711 (USD 1,010).

As of Q1 2023, International City boasted the best yields on investment for landlords. In fact, the average ROI in this area reached 9.16%.

Umm Suqeim was the most popular for prime villa rentals, with upticks of up to 50% across all configuration types. In Q1 2023, the average rental price was AED 271,000 (USD 74,000), AED 315,000 (USD 86,000) and AED 474,000 (USD 129,000) for 4, 5 and 6-bedroom units respectively. Other of the top most searched neighbourhoods for luxury villa rentals included Dubai Hills Estate, Palm Jumeirah and Arabian Ranches 2. Bayut registered a price increase of up to 89% in these areas.

Haider Ali Khan, CEO of Bayut and dubizzle and the Head of EMPG MENA, said Dubai’s popularity is attributed to its safety, infrastructure, government support and overall positive image. The Bayut portal has over 7,000,000 visits per month for real estate in Dubai alone, which clearly demonstrates how strong the demand is for property in the emirate.