The most popular areas of Dubai at the end of the first half of 2022 were the premium Dubai Marina, Downtown Dubai and Business Bay. The top three, with a slight lag, are followed by Palm Jumeirah, Jumeirah Village Circle and Jumeirah Lake Towers. Arabian Ranches, Dubai Hills Estate, Damac Hills, MBR City and Dubai Land are also striving for leadership.
All these areas are elite places to move and relax with an extremely high price tag for real estate. Their popularity confirms the continued high popularity of the emirate among large investors and wealthy buyers from abroad. However, according to the latest data, this category of buyers is increasingly being captured by citizens of Europe, Russia and Ukraine, displacing other categories from the premium sector.
In this aspect, Dubai Marina occupies a special position, including due to its location close to the coast, piers and yacht clubs, other elite areas such as Jumeirah Beach Residence (JBR) and Beach. At the same time, Downtown Dubai is an unofficial city center, on the territory of which there are many points of interest for both expats and tourists, including Burj Khalifa and Dubai Mall.
With this comparison, Business Bay is a little out of this league, since its strongest side is the role of a key commercial district, a business hub with a residential sector adapted exclusively to the needs of the actively working population and businesses, from small to large.
Nevertheless, regardless of the purposes for which the mass tenant moves or visits the designated areas, the growth figures remain impressive in any case. The three leaders demonstrated an increase in rental rates in the second quarter of 2022 by 24%, 23% and 21% for Downtown, Marina and Business Bay.
Today, the monthly payment for renting a studio in Dubai Marina will be about $10,900. This is one of the cheapest offers in the top three. At the same time, a tenant with a fortune can easily find a three-bedroom apartment in Downtown with a monthly rate of about $81,700. Most of all, the rental growth was established by the segment of villas and townhouses. In this context, Dubai Hills Estate, Palm Jumeirah and Arabian Ranches showed the most impressive results in the second quarter — 42%, 41% and 30%.
Separately, it deserves to be noted that the rental of residential real estate month by month captures an increasing share in the total number of rental contracts in Dubai. So, in July 2022, the residential segment accounted for 72.97% of the total number of lease contracts. A month earlier, this share was 67.3%.