Dubai Real Estate Transactions In Dubai Jump To All-Time Highs In Q1 2022
According to experts, Dubai Real Estate and Dubai’s Residential Market remain at historic highs in spite of rising financing costs and high inflation. The spike in transaction volumes reveals that the soaring demand and inflationary economic pressures seem to have a very limited effect on Dubai real estate transactions.
In the first four months of 2022, the total volume of transactions in the emirate reached 25,351, marking the highest amount ever seen in the emirate so far.
Residential real estate transactions in Dubai reached 6,342 in April 2022, an increase of 43 percent year over year. Sales of off-plan homes have also increased by 32.4 percent and those of secondary markets increased by 51.2 percent over the same period as well.
As of the first quarter of 2022, transaction volumes rose despite an 11 percent increase in average prices. A 9.6 percent increase in average apartment prices and a 20.4 percent increase in average villa prices were recorded during this period. However, Dubai’s residential market continues to display historic high levels of activity despite growing concerns about the global macroeconomic backdrop, namely higher financing costs and inflation rates.
Within the first four months of 2022, transactions totaled 25,351 – the highest level ever recorded for the first four months of a year. Rent growth during the year up to April 2022 accelerated at its fastest rate since October 2014 (16.2 percent) while price growth tapered (+11.0 percent).AED1,097 per square foot was the average apartment price in Dubai as of March 2022, while AED1,291 per square foot was the average villa price. These rates per square foot, for apartments and villas respectively, are 26.3 percent and 10.6 percent lower than the peak seen in late 2014.
With an average of AED2,034, Downtown Dubai scored the highest average per square foot sales rate in the apartments segment of the market. In contrast, Palm Jumeirah registered the highest average sales rate per square foot at 3055 AED in the villa segment of the market.
From the past 12 months to April this year, the average cost of renting apartments rose by 15.1% while the cost of renting villas rose by 23.5%. Overall, the average rent rose by 16.2% in the first four months of 2022.
According to the latest figures for April 2022, the average rent for a villa was AED244,836 a year and for an apartment AED81,653. The highest average rental rates were found respectively in Palm Jumeirah, where ask-rents averaged AED205,816, and in Al Barari, where rents averaged AED833,103.
The real estate market in Dubai has certainly retained its appeal. A growing number of investors and residents are interested in both villas for rent or apartments for rent in Dubai. The majority of rental properties they are eyeing include one-bedroom apartments, two-bedroom apartments, three-bedroom villas, and four-bedroom villas amongst others.
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