Downtown Dubai and Old Town are the most expensive areas to buy and rent apartments, while Emirates Hills and Palm Jumeirah are the most expensive areas for villas
Downtown Dubai and the nearby Old Town community are the most expensive areas to rent and buy apartments, according to new research from Propertyfinder Group.
According to the research, the most expensive area to buy an apartment is downtown Dubai, with an average price per square foot of AED 117 ($31), followed by Old Town at AED 115 ($31), The Views at AED 109 ($29), DIFC at AED 102 ($27) and Dubai Marina at AED 99 ($26).
Similarly, Downtown Dubai and Old Town were found to be the most expensive areas to buy an apartment, with average prices of AED 2,132 ($580) and AED 1,965 ($534) per square foot, respectively, followed by Palm Jumeirah at AED 1,838 ($500), DIFC at AED 1,796 ($488) and Dubai Marina at AED 1,570 ($427).
For villas, Emirates Hills was found to be the most expensive community to rent, with an average price per square foot of AED 80 ($21), followed by Palm Jumeirah at AED 75 ($20), The Lakes at AED 74 ($20), The Springs at AED 62 ($16) and Dubai Land at AED 61 ($16).
Emirates Hills, Palm Jumeirah and The Lakes were also found to be the most expensive areas to buy villas, with average prices per square foot of AED 2,604 ($708), AED 2,437 ($663) and AED 1,369 ($372), respectively. The top five were rounded out by Jumeirah Islands with an average price per square foot of AED 1,313 ($357) and Meadows, with AED 1,220 ($332).
Modest declines in rent
Regarding rents, in the Propertyfinder report group chief commercial officer Lukman Hajje wrote that "while a few communities have witnessed modest increases, the majority have seen the low single digit percentage declines in asking prices over the past six months."
"This can be directly attributable to the level of new stock being handed over," he added. "Many of these developments were sold to investors, some of whom had hoped to make a capital gain and flip or sell at or prior to completion."
Hajje noted, however, that many of these speculators into buy to let investors, which affects not only individual developments but surrounding areas with similar price points.