Investing in the Dubai real estate market is an excellent opportunity for those looking to achieve
- a stable rental income,
- and a portfolio with a steadily increasing value.
In this articlel, we take a detailed look at the indicators you should be tracking, based on data from DXB Interact.
1. Volume of property sales
In Dubai, there are two main types of property to invest in:
- off-plan: property projects still under construction (shown in blue)
- ready: completed properties (shown in green).
The above chart shows the sales volume of these properties since 2011. It can be clearly seen that at the beginning of the last decade there were more completed properties on the market, but today this has completely reversed. There is a huge increase in the number of properties on the market that are still in the project phase but have already been sold, meaning that a huge wave of investment has started in Dubai.
2. Property price
And the price index shows that the growth we have seen in recent years has been (and continues to be) driven by demand, with property project prices (in blue) rising steadily and steeply, so the value of a well-designed Dubai property portfolio is also rising steadily.
3. Top performing areas
In the last quarter of 2023, the most popular area in terms of volume was JVC, Jumeirah Village Circle, closely followed by Business Bay. These two areas also represent the largest weight in Dubai Estate's portfolio.
4. Rental yields
In addition to property appreciation, stable rental yields are another focus for foreign investors. As the chart above shows, the decline seen before and during the COVID-19 epidemic has been replaced by stable average rental growth. Moreover, according to analysts at DXB Interact, we could see an even more massive increase by 2026.