The Dubai residential market continued to post high levels of activity in 2022, with transaction volumes in January 2022 reaching 5,517, up 80.2 percent from January 2021, according to global commercial real estate services firm CBRE.
In the report, off-plan sales increased by 187.5 percent during this period, while secondary market sales increased by 32.5%.
Prices increased by 10.2 percent in the year to January 2022. In this period, average apartment prices increased by 8.5% and average villa prices by 21.8%. In January 2022, average apartment prices in Dubai stood at Dh1,085 per square foot and average villa prices at Dh1,250 per square foot. In comparison to the highs seen in late 2014, these rates per square foot are 27.1% and 13.5% below the peak, for apartments and villas.
Downtown Dubai has recorded the highest average sales rate per square foot in the apartments segment at Dh1,958. The Palm Jumeirah has the highest average sales rate per square foot in the villas segment of the market, at Dh 2,699.
The average rent in the 12 months to January 2022 increased by 10.1%, including increases of 8.3% for apartments and 22.8% for villas. Rents for apartments and villas stood at Dh76,347 and Dh230,275 per year, respectively, in January 2022.
In the rental market, the highest average annual rents were found in Downtown Dubai, where asking rents averaged Dh150,723, and in Al Barari, where asking rents averaged 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.