Dubai Property Rents Climb 21.6% In Past Year
The Dubai real estate sector has seen sale prices increase more than 19 per cent and rents up by over 21 per cent in the past year, according to CBRE analysis. The total volume of transactions in Dubai’s residential market stood at 11,328 in August 2023.This is the second-highest monthly figure ever registered, up by 22 per cent compared to the previous year. Over this period, off-plan sales increased by 58.7 per cent, while secondary market sales dropped by 10.2 per cent. In the year to date to August 20231, a total of 79,605 transactions were registered, the highest on record over this period. In the sales market, price growth continues to accelerate. In the 12 months to August 20232, average prices rose by 19.6 per cent, up from 18.1 per cent a month earlier. Over this period, average apartment prices rose by 20 per cent, and average villa prices rose by 17.3 per cent. As at August 2023, average apartment prices reached AED1,344 per square foot, and average villa prices reached AED1,571 per square foot. Average apartment sales rates sit 9.6 per cent below their 2014 comparable peak; although several communities have already topped their 2014 peak benchmarks. Average villa sales rates, on the other hand, now sit at 8.7 per cent above their 2014 level. In the apartment segment of the market, Downtown Dubai registered the highest sales rate per square foot at AED2,460, whereas, in the villa segment of the market, Palm Jumeirah registered the highest sales rate per square foot at AED4,915.In the rental market, there is a slight moderation in the rate of growth. Average rents in Dubai rose by 21.7 per cent in the year to August 2023, down marginally from 22 per cent in July 2023.Over this period, average apartment rents increased by 21.5 per cent, and average villa rents rose by 22.6 per cent. In August 2023, the average apartment and villa rents stood at AED106,674 ($29,000) and AED322,573 ($88,000) per annum, respectively. The highest yearly apartment and villa asking rents have been registered in Palm Jumeirah, with average rents reaching AED257,173 ($70,000) and in Al Barari, with average rents reaching AED1,108,164 ($302,000). Taimur Khan, Head of Research – MENA at CBRE in Dubai, said: “Dubai’s residential market continues to register substantial levels of growth.”
Tags : Dubai real estate CBRE analysis residential market transactions growth apartment villa prices communities sales Downtown Dubai