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Residential rents in Dubai increase at the fastest rate since late 2014, says CBRE

 

The total volume of transactions in Dubai’s residential market reached 5,542 in May 2022, up 33.0% from a year earlier

 

Filed under
Property Management
 
UAE
June 15, 2022
 
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Residential rents in Dubai increase at the fastest rate since late 2014, says CBRE
 

The total volume of transactions in Dubai’s residential market reached 5,542 in May 2022, up 33.0% from a year earlier. Over this period, off-plan sales increased by 55.4% and secondary market sales by 18.0%. Total transaction volumes in the year to date to May 2022 reached 30,903, this is the highest total recorded since 2009, over this period.

Average prices increased by 10.9% in the year to May 2022. Over this period, average apartment prices increased by 9.6% and average villa prices by 19.8%. As of May 2022, average apartment prices in Dubai stood at AED 1,102 per square foot and average villa prices stood at AED 1,307 per square foot. Compared to the highs witnessed in late 2014, these rates per square foot are 25.9% and 9.5% below the peak, for apartments and villas respectively.

In the apartments segment of the market, Downtown Dubai recorded the highest average sales rate per square foot at AED 2,045. Whereas in the villas segment of the market, Palm Jumeirah recorded the highest average sales rate per square foot at AED 3,207.

Average rents in the 12 months to May 2022 have increased by 19.1%, with average apartment and villa rents increasing by 18.3% and 24.3% respectively. As of May 2022, average apartment and villa rents stood at AED 83,485 and AED 249,677 per annum respectively.

In the rental market, the highest average annual apartment and villa rents respectively were found in Palm Jumeirah, where asking rents on average were AED 213,761, and in Al Barari, where asking rents on average were AED 874,171.

Taimur Khan, Head of Research – MENA at CBRE in Dubai, comments, "Transaction activity in Dubai’s residential market continues to remain on a strong footing, with total transactions volumes in the year to date to May 2022 reaching 30,903, the highest total recorded since 2009. Price growth has also remained robust, despite the rate of growth slowing marginally from a month earlier, where average sales prices grew by 10.9% in the 12 months to May 2022. The rate of growth for rents has continued to increase on a year-on-year basis. In the year to May 2022 average rents increased by 19.1%, up from 16.2% recorded a month earlier, this is the fastest rate of growth since October 2014.”