Rent growth in Dubai continues to hold at historic highs, says CBRE

Year-to-date to August 2022, total transaction volume registered 55,108, the highest level recorded since 2009.

Doha: In August 2022, the total transaction volume in the Dubai residential market recorded 9,257, an increase of 70.5% compared to the previous year. Over the same period, off-plan sales and on the secondary market increased by 68.5% and 72.4% respectively. Year-to-date to August 2022, the total transaction volume recorded 55,108, the highest level recorded since 2009, over this period.

Average prices in the 12 months to August 2022 increased by 8.8%, with average apartment prices increasing by 7.7% and average villa prices by 15.8%. The average price of apartments in Dubai reached AED 1,120 per square foot and the average price of villas reached AED 1,339 per square foot. These average rates are still below the peak of 2014, where apartments and villas are respectively 24.7% and 7.3% below this peak.

In the apartment segment of the market, Jumeirah recorded the highest average sale rate per square foot at AED 2,152, while in the villa segment of the market, Palm Jumeirah recorded the highest average sale rate per square foot. square foot at AED 3,588.

In the year to August 2022, average rents increased by 24.8%. Over this period, average rents for apartments increased by 24.9% and average rents for villas by 24.2%. In August 2022, the average annual rents for apartments and villas reached AED 87,774 and AED 263,034 respectively.

The highest annual rents for apartments and villas were respectively observed in Palm Jumeirah, where average rents reached AED 222,870, and Al Barari, where average rents reached AED 935,046.

Taimur Khan (pictured), Head of Research – MENA at CBRE in Dubai, comments:

“Total transaction volume for August in the Dubai residential market reached 9,257, the fifth highest monthly total on record. Transaction activity in the sector continues to challenge both a difficult global economic environment and a generally more subdued period for transaction activity. With rising mortgage rates, both promotional and post-promotional, we saw average price growth slow to 8.8% in the year to August 2022 from 9.9% one month. earlier. Rents, on the other hand, continue to register near-record growth, with average rents rising 24.8% in the 12 months to August 2022, from 23.7% a month earlier. The growth rate of rents, on a monthly basis, has slowed for three consecutive months now, indicating that we may see the growth rate of rents begin to moderate in the not too distant future.

About Gene Schafer

Check Also

Fall Travel Tips

Fall is the perfect time to plan a getaway or vacation, with unique and affordable …