In June 2023, the volume of transactions in Dubai’s residential market totalled 9,876, marking an 18.8% increase from the year prior. Over the same period, off-plan transactions grew by 44.9%, whereas secondary market transactions marginally declined by 0.5%. In the year to date to June 2023, a total of 57,737 residential transactions were recorded. This is the highest figure registered over the year’s first two quarters.
Dubai’s average prices grew at the strongest pace since late 2014, increasing by 16.9% in the year through June 2023. This is up from the 15.9% growth registered a month earlier. Over this period, average apartment prices grew by 17.2% and average villa prices by 15.1%. As of June 2023, average apartment prices reached AED 1,294 per square foot, and average villa prices reached AED 1,525 per square foot. These average apartment sales rates remain 13.1% below the 2014 levels. That being said, several communities have already surpassed their peak. On the other hand, average villa sales rates currently sit 5.5% above their 2014 figures.
Average rents increased by 22.8%
Downtown Dubai registered the highest sales rate per square foot in the apartment segment of the market, reaching AED 2,440, while Palm Jumeirah registered the highest sales rate per square foot in the villa segment of the market, reaching AED 4,845.
In the rental market, average rents increased by 22.8% in the year to June 2023, down from the 24.2% increase recorded a month earlier. Over the same period, average apartment and villa asking rents grew by 22.7% and 23.1%, respectively. In June 2023, the average annual apartment and villa rents stood at AED 104,685 and AED 314,552, respectively.
Average apartment and villa asking rents grew by 22.7% and 23.1%
The highest average annual apartment and villa asking rents were respectively seen in Palm Jumeirah, with average apartment rents reaching AED 258,335, and in Al Barari, with average villa rents reaching AED 1,042,931.
Taimur Khan, Head of Research – MENA at CBRE in Dubai, comments:
“A strengthening rate of price growth has been witnessed in Dubai’s residential market over the past few months, where in the year through June 2023, average prices across the city grew by 16.9%, with average apartment and villa prices rising by 17.2% and 15.1%, respectively. This stronger rate of growth has been supported by the elevated activity levels, where mid-way through the year, the total transaction volumes hit the highest level on record over this period with 57,737 transactions. Looking at average apartment and villa prices, we have seen price growth in 97.1% (apartment) and 96.8% (villa) of the communities that CBRE monitors compared to a year ago. Prime and key residential areas are capturing an elevated level of demand and seeing significant price growth.
Average annual apartment and villa rents stood at AED 104,685 and AED 314,552
Conversely, we continue to experience softening in the rental market – a trend we expect to be maintained over the upcoming period, particularly since rental growth rates in several major areas are moderating, and many listings within these communities are reducing their asking rents.”