Dubai: Average residential property prices increased 15.9% in May 2023, according to a report by CB Richard Ellis (CBRE), a global real estate advisory.
A total of 10,934 transactions were registered in Dubai’s residential market in May 2023, highlighting a growth of 76.6% compared to the previous year. Average residential prices in Dubai grew by 15.9% in the year through May 2023, the report says.
In May 2023, average apartment prices stood at Dh 1,277 per square foot, and average villa prices stood at Dh 1,517 per square foot. Average apartment sales rates per square foot are still 14.2% below the record highs of 2014, although a number of neighbourhoods have long surpassed their 2014 figures. Conversely, average villa sales rates are currently 5.0% above their 2014 peak.
The highest average apartment price per square foot in Dubai is in Jumeirah, at Dh2,410 whereas the highest average villa price per square foot in Dubai in Jumeirah is Dh4,692. The average annual rent for an apartment in Dubai Dh104,000 and average annual rent for a villa in Dubai Dh312,000. The highest average annual apartment rent in Dubai in Palm Jumeirah stands at Dh262,000 and the highest average annual villa rent in Dubai in Palm Jumeirah stands at Dh1,000,000.
Over this period, off-plan sales increased by 107.2 percent and secondary market sales by 52.7 percent. Average rents in Dubai grew by 24.2 percent in the year to May 2023, down from the 25.8 percent growth rate registered in the prior month. Over this period, average apartment rents rose by 24.1 percent and average villa rents by 24.8 percent. As of May 2023, the average apartment and villa asking rents reached Dh103,646 and Dh311,655 per annum, respectively.
Jumeirah recorded the highest sales rate per square foot in the apartment segment of the market, at Dh2,410, whilst Palm Jumeirah recorded the highest sales rate per square foot in the villa segment of the market at Dh4,692.
“We have witnessed slight moderation in the growth rate in the rental market for the fourth consecutive month, with average rents growing by 24.2 percent in the year through May 2023 compared to 25.8 percent registered a month earlier. This is due to the reduction in asking rents in a number of key residential areas, particularly in the apartment segment, where rents in several prime communities are now heading towards a single-digit growth. However, multiple secondary areas are still recording significant increases in their rental rates, albeit these areas are behind the curve compared to the wider market.’’ Taimur Khan, Head of Research – MENA at CBRE in Dubai, said.
According to other market reports these figures are on the higher side.
