A recent survey revealed that residential rents in Dubai are rising at the fastest rate since late 2014. The total transaction volume in Dubai’s residential market reached 5,542 in May 2022, up 33% from the last year.
According to the June 2022 edition of the “Dubai Residential Market Snapshot” report published by Coldwell Banker Richard Ellis (CBRE), off-plan sales increased by 55.4% and secondary market sales by 18%.
CBRE Group, Inc. is an American commercial real estate services and investment company.
The report indicates that the total volume of transactions from the beginning of the year until May 2022 reached 30,903, and this is the highest total recorded since 2009 over this period. Average prices increased by 10.9% in the year to May 2022.
What are the average prices for apartments and villas?
In May 2022, the average rents for apartments and villas amounted to 83,485 Dh and 249,677 Dh respectively per year.
In the rental market, the study found that the highest average annual rents for apartments and villas were in Palm Jumeirah, where asking rents averaged Dh213,761, and Al Barari, where asking rents on average were 874,171 Dh.
During this period, average apartment prices increased by 9.6% and average villa prices by 19.8%. In May 2022, the average price of apartments in Dubai was Dh1,102 per square foot and the average price of villas was Dh1,307 per square foot.
Compared to the peaks seen at the end of 2014, these rates per square foot are 25.9% and 9.5% below the peak for apartments and villas, respectively. In the apartment segment of the market, Downtown Dubai recorded the highest average sale rate per square foot at Dh2,045.
While in the villa segment of the market, Palm Jumeirah recorded the highest average sale rate per square foot at Dh3,207.
Average rents in the 12 months to May 2022 increased by 19.1%, with average rents for apartments and villas increasing by 18.3% and 24.3% respectively.
A month ago, a similar study by Asteco indicated that rents in several areas such as Dubai Marina, Jumeirah Breach Residence, Jumeirah Lake Towers and Palm Jumeirah were increasing at a double-digit rate.
Interestingly, rents in affordable areas such as Deira, Dubai Sports City and Jumeirah Village are also rising at a double digit rate as the population continues to grow with more and more job seekers looking for more pasture. green, according to the Asteco study.
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