Dubizzle, the UAE’s biggest online property platform, has released a report providing insight into the Dubai residential market and recent trends.
The findings highlight an increase in popularity for mid-market housing in the city, consequently leading to an increase in mortgaged property purchases.
Dubizzle, which receives an average of 3.7 million visits each month, concluded that the top five searched villa communities for sale in 2017 were: Arabian Ranches with almost two million searches; The Springs and Akoya Oxygen at joint second with 1.3 million searches; Mira, from Reem Community with one million searches; and The Villa with 795K searches.
Taking a closer look at the communities, dubizzle compared the sale prices from Q1 2016 against Q3 2017. The sale price per sq ft for three to five-bedroom villas in The Springs now averages at AED 1,272, representing a six percent increase.
Following the same trend, sale price per sq ft for Mira-Reem increased for three and four-bedroom villas over the same period. These properties currently average at AED 905 per sq ft, showing a 22 percent increase.
At a similar cost to the Mira-Reem villas, The Villa Project by Dubai Properties averaged at AED 983 per sq ft, showing an increase of 11 percent for three and four-bedroom villas. Both villas saw a rise in prices by nine and 13 percent per sq ft respectively.
The current sale price of Arabian Ranches and Akoya Oxygen have decreased, now standing at AED 1,132 and AED 672 per sq ft respectively. This indicates a respective three percent and 34 percent decline during this period.
The top five searched apartment communities in 2017 were Dubai Marina with 5.8 million searches, Jumeirah Lake Towers with 3 million searches, Downtown Dubai with 2.5 million searches, Jumeirah Village Circle with 2 million searches and International City with 2 million searches.
Meanwhile, Dubai Marina and Downtown Dubai experienced a decrease in sales prices.
Areas such as Jumeirah Village Circle and International City experienced an increase of one percent and three percent respectively.
Overall, the prices in Jumeirah Lake Towers remained unchanged; however, one-bedroom apartments in the same area saw a five percent increase, while three and four-bedroom apartments saw a decrease.
Commenting on the findings, Ann Boothello, Senior Product Marketing Manager for Property at dubizzle said: “We can deduce that mid-market apartments are making their way into the Top 5 searched communities on dubizzle by observing search volume data of buyers browsing our property for sale section.
“The demand for these properties is further proven through our data identifying an increase in price per sq ft in Jumeirah Village Circle and International City.
“Furthermore, the data shows that apartment communities such as Jumeirah Lake Towers are preferred by young couples or business people, based on the increase and demand for one-bedroom apartments as opposed to larger units.”
Overall, the rise of the mid-market property segment indicates a shift from a predominantly cash-based investor market to one for the mortgaged end-users.
As Dubai transforms into a more mature marketplace, dubizzle’s user interface is being revamped to allow for a new and improved buyer and tenant property search experience across all devices and apps on iOS and Android.
For more information, please find the tutorial link here.