Dubai: Dubai’s residential market continues to record strong levels of activity in 2022, with transaction volumes in January 2022 reaching 5,517, up 80.2 per cent from January 2021, according to global commercial real estate services firm CBRE.
According to the report, over this period, off-plan sales increased by 187.5 per cent and secondary market sales by 32.5 per cent.
Average prices increased by 10.2 per cent in the year to January 2022. Over this period, average apartment prices increased by 8.5 per cent and average villa prices by 21.8 per cent. As at January 2022, average apartment prices in Dubai stood at Dh1,085 per square foot and average villa prices stood at Dh1,250 per square foot. Compared to the highs witnessed in late 2014, these rates per square foot are 27.1 per cent and 13.5 per cent below the peak, for apartments and villas respectively.
In the apartments segment of the market, Downtown Dubai has recorded the highest average sales rate per square foot at Dh1,958. Whereas in the villas segment of the market, Palm Jumeirah recorded the highest average sales rate per square foot at Dh 2,699.
Average rents in the 12 months to January 2022 have increased by 10.1per cent, with average apartment and villa rents increasing by 8.3 per cent and 22.8 per cent respectively. As at January 2022, average apartment and villa rents stood at Dh76,347 and Dh230,275 per annum respectively.
In the rental market, the highest average annual apartment and villa rents were found in Downtown Dubai, where asking rents on average were Dh150,723, and in Al Barari, where asking rents on average were Dh798,374.
“Growth momentum for both transactions volumes and prices increased in January, as Dubai’s residential market continues to register record levels of activity. Looking ahead, we expect that market activity will continue to be robust, however, we do expect the rate of price growth to moderate,” said Taimur Khan, Head of Research – MENA at CBRE in Dubai.
