Dubai Property Market Flourishes At Strongest Rate In Almost 9 Years
Dubai’s property market is flourishing at the strongest rate in almost nine years. Palm Jumeirah and Downtown Dubai came out as the top-performing areas in terms of villa and apartment sales.
As the transaction volumes reached 9,876, the residential property market in Dubai experienced an increase of 18.8 per cent in June 2023 in comparison to the same month last year. During the same tenure, off-plan transactions in Dubai surged by 44.9 per cent. On the other hand, secondary market transactions experienced a minor drop of 0.5 per cent.
As of June 2023, there have been 57,737 residential transactions registered, making it the highest number over the first two quarters of the year. The residential property market has witnessed a strengthening rate of price growth in recent months, with average prices rising by 16.9 per cent through June 2023. While apartment prices and villa prices increased by 17.2 per cent and 15.1 per cent, respectively.
At mid-year, the total number of transactions reached the highest level on record over this period with 57,737. This was the highest level on record during this period.
Glancing at the average villa and apartment rates, experts have noticed a price increase of 96.8 per cent (villa) and 97.1 per cent (apartment) of the neighbourhoods that CBRE monitors in comparison to a year ago. Key and prime residential areas in Dubai are seeing remarkable price growth and are capturing a raised level of demand.
Dubai Residential Real Estate Prices
Experiencing a 16.9 per cent hike in the year through June 2023, increased from 15.9 per cent growth registered a month earlier, average prices saw a powerful momentum since late 2014.
Average villa rates in Dubai surged by 15.1 per cent. Average apartment rates in Dubai by 17.2 per cent in this period. Averaging AED1,294 per square foot, average apartment rates in Dubai are still below 2014 levels.
Several neighbourhoods have already crossed their previous peak levels. However, villa rates on average reached AED1,525 per square foot, exceeding their 2014 numbers by 5.5 per cent.
Palm Jumeirah emerged as the area with the highest apartment rents in Dubai with an average annually rent of AED58,335. Al Barari stood first in the list for villas with an average per annum rent of AED1,042,931. Moreover, with rates touching AED4,845 per square foot, Palm Jumeirah claimed the highest villa sales prices. Downtown Dubai came out as the top-performing area in terms of unit sales with rates touching AED2,440 per square foot.
According to the rental market, average rents increased by 22.8 per cent in the year leading up to June 2023. Although this is slightly lower than the previous month when they jumped 24.2 percent. In the same period, average villa and apartment rents in Dubai surged by 23.1 percent and 22.7 percent, respectively. At present time, the average yearly rent for villas is AED14,552, whereas apartments have a yearly rent of AED104,685.
Meanwhile, the rental market in Dubai continues to soften – a trend we expect to continue for the foreseeable future. particularly because many rental listings in these areas are lowering their asking rents as rental growth rates moderate in several major areas, experts believe.
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