A recent survey revealed that residential rents in Dubai are increasing at the fastest rate since late 2014. The total volume of transactions in Dubai’s residential market reached 5,542 in May 2022, up a whopping 33 per cent from a year earlier.
According to the June 2022 edition of the ‘Dubai Residential Market Snapshot’ report published by Coldwell Banker Richard Ellis (CBRE), off-plan sales increased by 55.4 per cent and secondary market sales by 18 per cent.
CBRE Group, Inc. is an American commercial real estate service and investment firm.
The report said total transaction volumes in the year to date to May 2022 reached 30,903, and this is the highest total recorded since 2009 over this period. Average prices increased by 10.9 per cent in the year to May 2022.
WHAT ARE AVERAGE APARTMENT AND VILLA PRICES?
As of May 2022, average apartment and villa rents stood at Dh 83,485 and Dh 249,677 per year, respectively.
In the rental market, the study found that the highest average annual apartment and villa rents in Palm Jumeirah, where asking rents on average were Dh 213,761, and in Al Barari, where asking rents on average were Dh 874,171.
Over this period, average apartment prices increased by 9.6 per cent and average villa prices by 19.8 per cent. As of May 2022, average apartment prices in Dubai stood at Dh 1,102 per square foot, and average villa prices stood at Dh 1,307 per square foot.
Compared to the highs witnessed in late 2014, these rates per square foot are 25.9 per cent and 9.5 per cent 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 Dh 2,045.
Whereas in the villas segment of the market, Palm Jumeirah recorded the highest average sales rate per square foot at Dh 3,207.
Average rents in the 12 months to May 2022 have increased by 19.1 per cent, with average apartment and villa rents rising by 18.3 per cent and 24.3 per cent, respectively.
A month ago, a similar study from Asteco said rents in several areas such as Dubai Marina, Jumeirah Breach Residence, Jumeirah Lake Towers and Palm Jumeirah are growing at a double-digit rate.
Interestingly, rents in affordable areas such as Deira, Dubai Sports City and Jumeirah Village are also increasing at a double-digit rate as the population continues to expand with more job-seekers coming in search of greener pastures, said the Asteco study.