Doha: The total volume of transactions in Dubai’s residential market recorded 8,269 in October 2022, marking an increase of 72.5 percent over the previous year. This increase has been supported by a 133.5% increase in off-plan sales, while secondary market sales increased by 29.4%. In the year to October 2022, total transaction volumes reached 71,412, which remains the highest total recorded since 2009.
Average prices rose 9.2 per cent in the year to October 2022, with average apartment prices up 8.5 per cent and average villa prices up 13.0 per cent. In Dubai, average apartment prices reached AED 1,149 per square meter and average villa prices reached AED 1,359 per square meter. Compared to peaks recorded in 2014, these average rates are still 22.8% and 6.0% below that peak for apartments and villas respectively.
In the apartment segment of the market, Jumeirah recorded the highest average sales rate per square foot at AED 2,226, while in the villa segment of the market, Palm Jumeirah recorded the highest average sales rate per square foot with AED 3,704.
In the 12 months to October 2022, average rents rose by 27.3%, with average apartment rents up 27.5% and average villa rents up 25.7%. As of October 2022, the annual average asking rents for apartments and villas reached AED 91,795 and AED 273,740, respectively.
The highest average annual rents for apartments and villas were respectively observed in Palm Jumeirah, where average rents reached AED 242,250 on average, and Al Barari, where average rents recorded AED 956,174.
Taimur Khan (pictured), Head of Research – MENA at CBRE in Dubai, comments:
“Residential rents in Dubai increased by 27.3 percent in October 2022 compared to the previous year, extending the record annual growth we saw the previous month. Ejari data shows that the the number of new contracts registered year-on-year in the year to October 2022 fell by 4.7%, while renewals rose by 33.6%, indicating that tenants are less willing to move given current market conditions, not surprising given that the number of listings is down 6.7 percent month-on-month. We expect the rate of change in the rental market to begin to slow by the end of 2022. In the sales market , 8,269 transactions were recorded in October 2022, up 72.5 percent from the previous year.A total of 71,412 transactions were recorded in the year to October 2022, for to put it in context, in 2019 this figure was 29,394. Regarding transaction volumes of e year, we expect total transactions in 2022 to comfortably exceed 2009’s total.”