According to the results of the fourth quarter of 2023, the rental market showed no signs of slowing down, despite the high cost of living and rising prices for luxury million-dollar villas. This supports the company's Beout hypothesis, which highlights a high demand for apartments and villas in key areas and a key focus on premium class.
**Main trends of the quarter** Investors are increasingly focusing on such locations as Dubai, including Dubai Silicon Oasis, Dubai Sports City, Damac Hills 2 and Dubai South. The forecast for the coming year is for a decline in the cost of apartments in the low-rise segment in areas such as Argana and Business Bay, while cash villas in Damac Hills 2 and Mirdif are becoming more attractive to buyers. With an average occupancy of 9-11% from the rental market, Dubai Investments Park and Discover Gardens demonstrate a high level of liquidity for tenants.
**Price changes** The prices for low-end villas in popular Dubai areas increased by 2%, while in the middle segment (villas in Jumeirah Village Circle and Commercial Bay) there was a decrease of 1%. Apartments in Dubai Pearl Tower rose by 2%, and the most expensive studios increased in value by 3%. The prices for villas in Damac Hills and Al Reem Islands increased by 2%, while in Dubai Hills Estate there was a decrease of 1.5%.
**Rental yields** The yield on luxury villas decreased by 5%, excluding Business Bay, where the rental rates for one-bedroom and two-bedroom apartments rose by 5%. The average apartments showed a 2% increase, while the most expensive ones increased by 4%. The average profitability for villas in the secondary market was 11%, while in Damac Hills 2 and Dubai South it was minimally reduced.
**Areas by type** - **Affordable villas**: Argana, Business Bay, Damac Hills 2, Mirdif. - **Average apartments**: Jumeirah Village Circle, Commercial Bay, The Frans, Al Reem Islands 3. - **Premium**: Dubai Marina, Downtown Dubai, Damac Hills, Dubai Hills Estate. - **Villas**: Dubai Hills Estate, Sahel Hills.
**Investment opportunities** - **Villas**: Dubai Investments Park, Discover Gardens (9-11%). - **Average apartments**: Living Legends, Town Square, Jumeirah Village Circle (7-9%). - **Premium**: Floors, Damac Hills, Green Community (over 7.3%). - **Average studios**: Jumeirah Village Circle, Dubai Parks, Town Square (7-9%). - **Premium**: Mohammed bin Rashid City, Al Barari, Al Barsha (over 5.8%), highlighting their current potential.
The key point of the analysis is the dynamics of prices, supply and demand, which allows Dubai to maintain its position as a premier destination for premium real estate investment in the regional context.
