Taimur Khan, Head of Research – MENA at CBRE in Dubai
Doha: In September 2022, the total transaction volumes in Dubai’s residential market reached 7,273, a 33.4% rise compared to the preceding year. Over this period, off-plan and secondary market sales increased by 51.4% and 17.3% respectively. In the year to September 2022, the total volume of transactions reached 62,396, the highest level recorded since 2009, over this same period.
In the 12 months to September 2022, average prices rose by 8.9%, with average apartment prices increasing by 8.0% and average villa prices by 14.3%. Average apartment prices in Dubai stood at AED 1,133 per square foot and average villa prices were at AED 1,350 per square foot. These average rates still have not surpassed the highs witnessed in late 2014, where apartments and villas, remain 23.8% and 21.6%, respectively, below this peak.
Jumeirah recorded the highest average sales rate per square foot, in the apartments segment of the market, at AED 2,156, whereas in the villas segment of the market, Palm Jumeirah registered the highest average sales rate per square foot at AED 3,597.
Average rental rates, in the year to September 2022, increased by 26.6%, with average apartment rents increasing by 26.7% and average villa rents by 25.5%. As at September 2022, the average yearly apartment and villa rents reached AED 89,986, and AED 268,758, respectively.
The highest average yearly apartment and villa rental rates were respectively seen in Palm Jumeirah, where average rents reached AED 231,397, and in Al Barari, where average rents reached AED 946,270.
Taimur Khan, Head of Research – MENA at CBRE in Dubai, comments: “Rental rate growth in Dubai has reached record highs with average rents in the city increasing by 26.6% in the year to September 2022, with apartment and villa rents increasing by 26.7% and 25.5% respectively over the same period. In the apartment and villa communities that we track, rents in 6.5% and 28.0% of these respective communities now sit above their last peak.
Furthermore, rents in 22.6% of apartments communities and in 96.0% of villa communities, in September 2022, are higher than the same period five years earlier. Given this, the rate of growth in certain typologies and neighbourhoods may start impact affordability in the city very significantly. This in turn may impact its competitiveness and lead a negative spill over into other sectors, particularly amidst a high cost of living and softer global economic backdrop.”
