Average residential rents in Dubai increased by 23.7% in the the 12 months to July 2022, representing the highest annual rate of growth since May 2014, a report said
Average apartment and villa rents increased by 23.5% and 24.8%, respectively, said the CBRE report.
As at July 2022, average apartment and villa rents stood at AED86,713 and AED260,949 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 AED219,769, and in Al Barari, where asking rents on average were AED925,010.
Meanwhile, the total volume of transactions in Dubai’s residential market reached 6,524 in July 2022, up 58% from a year earlier. Over this period, off-plan sales increased by 59% and secondary market sales by 57.1%. Total transaction volumes in the year to date to July 2022 reached 45,793 this is the highest total recorded since 2009, over this period, said the report.
Average prices increased by 9.9% in the year to July 2022. Over this period, average apartment prices increased by 8.7% and average villa prices by 17.8%.
As at July 2022, average apartment prices in Dubai stood at AED1,114 per sq ft and average villa prices stood at AED1,335 per sq ft. Compared to the highs witnessed in late 2014, these rates per square foot are 25.1% and 7.6% below the peak, for apartments and villas, respectively.
In the apartments segment of the market, Jumeirah recorded the highest average sales rate per square foot at AED2,082. Whereas in the villas segment of the market, Palm Jumeirah recorded the highest average sales rate per square foot at AED3,521.
Taimur Khan, Head of Research – MENA at CBRE in Dubai, commented: “Despite the summer period, which usually sees more subdued activity levels, sales activity in Dubai’s residential market remained buoyant in July 2022, with 6,524 units transacting in the month, up 50.8% from a year earlier. Total transaction volumes in the year to date to July 2022 reached 45,793 this is the highest total recorded since 2009, over this period.
"Notwithstanding this strong activity, average price growth slowed, albeit it marginally to 9.9%, in the year to July 2022. In terms of the top three locations for apartment rental growth, in the 12 months to July 2022, rents in Palm Jumeirah, Downtown and Dubai Maria saw rents increase by 39.8%, 38.4% and 35.7% on average, respectively,” Khan said. - TradeArabia News Service