Dubai’s residential market continues to showcase strong levels of demand with the average housing prices posting a 15.9% growth in the year through May, according to leading property expert CBRE.
A total of 10,934 transactions were registered in Dubai’s residential market in May, thus highlighting a growth of 76.6% compared to the previous year. Over this period, off-plan sales surged by 107.2%, and secondary market sales by 52.7%.
The total volume of transactions in the year to date to May 2023 reached 47,850, the highest level on record over this period.
Average apartment prices increased by 15.9% and average villa prices by 16% over the same period.
In May, average apartment prices stood at AED1,277 per sq ft, and average villa prices stood at AED1,517 per sq ft. Average apartment sales rates per square foot are still 14.2% below the record highs of 2014, although a number of neighbourhoods have long surpassed their 2014 figures.
Conversely, average villa sales rates are currently 5.0% above their 2014 peak.
According to CBRE, Jumeirah recorded the highest sales rate per sq ft in the apartment segment of the market, at AED2,410, whilst Palm Jumeirah recorded the highest sales rate per sq ft in the villa segment of the market at AED4,692.
Average rents in Dubai grew by 24.2% in the year to May 2023, down from the 25.8% growth rate registered in the prior month.
Over this period, average apartment rents rose by 24.1% and average villa rents by 24.8%. As of May, the average apartment and villa asking rents reached AED103,646 and AED311,655 per annum, respectively.
The highest average annual apartment and villa rents were respectively seen in Palm Jumeirah, where rents reached an average of AED262,018, and in Al Barari, where average rents stood at AED1,006,881.
On the robust growth, Taimur Khan, Head of Research (Mena), said: "In the year to date to May, a total of 47,850 transactions have been registered, marking a year-on-year growth of 49.6%. This is the highest total ever recorded over this period – for reference, this figure was only around 12,888 in 2019."
"Given these robust activity levels, average apartment and villa prices grew by 15.9% and 16% respectively and we expect that the strong levels of demand will keep on supporting price growth," he added.-TradeArabia News Service
