Doha: The total volume of transactions in Dubai’s residential market registered 8,269 in October 2022, highlighting an increase of 72.5 percent from the prior year. This increase has been underpinned by a 133.5 percent increase in off-plan market sales while secondary market sales rose by 29.4 percent. In the year to date to October 2022, the total transaction volumes reached 71,412, this continues to be the highest total recorded since 2009.
Average prices rose by 9.2 percent, in the year to October 2022, where average apartment prices rose by 8.5 percent and average villa prices by 13.0 percent. In Dubai, average apartment prices reached AED 1,149 per square foot, and average villa prices AED 1,359 per square foot. In comparison with the highs recorded in 2014, these average rates are still 22.8 percent and 6.0 percent, below this peak, for apartments and villas, respectively.
In the apartment segment of the market, Jumeirah registered the highest average sales rate per square foot at AED 2,226, whilst in the villa segment of the market, Palm Jumeirah recorded the highest average sales rate per square foot at AED 3,704.
In the 12 months to October 2022, average rents increased by 27.3 percent, where average apartment rents rose by 27.5 percent and average villa rents by 25.7 percent. As of October 2022, the average annual apartment and villa asking rents reached AED 91,795 and AED 273,740, respectively.
The highest average annual apartment and villa rents were respectively seen in Palm Jumeirah, where average rents reached AED 242,250 on average, and in Al Barari, where average rents registered 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 a year earlier, extending on the record high annual growth we saw in the month prior. Ejari data shows that the number of new contracts registered year-on-year in the year to date to October 2022 fell by 4.7 percent, whereas renewals have increased by 33.6 percent, indicating that tenants are less willing to move given current market conditions, not surprising given that the number of listings are down 6.7 percent month-on-month. We expect the rate of change in the rental market to start tapering off by the end of 2022. In the sales market, 8,269 transactions were recorded in October 2022 a 72.5 percent increase from the year prior. A total of 71,412 transactions were recorded in the year to date to October 2022, to put this into context, in 2019 this figure totalled 29,394. In terms of transaction volumes for the year, we expect 2022 total transactions to comfortably surpass the 2009 total.”
