Dubai saw a record number of real estate transactions in the first four months of the year
The real estate sector in Dubai has experienced a significant upswing, with average sales prices skyrocketing by 14.5 percent at the beginning of the year. Rents for apartments and villas have also risen by more than 25 percent, reflecting the growing demand for high-quality residential real estate in the city.
Despite a decline in the secondary market, residential transactions in Dubai have been impressively stable overall, as CBRE reports. In April 2023, the total volume of residential transactions reached 7,615, an increase of 16.2 percent compared to the previous year.
This growth is driven by the increasing popularity of sales on the off-plan market, which have increased by 42.5%. In contrast, sales on the secondary market recorded a slight decline of 2.4%. The cumulative effect of this robust market activity has resulted in a historic total of 36,946 transactions recorded so far this year – the highest figure ever recorded in this period.
The price increase was particularly notable, as average prices rose by 14.5% in the year to April 2023. There were notable price increases for both apartments and villas, with average prices for apartments rising by 14.5 percent and villas by 14.9 percent.
To give you an idea of the current market prices, the average price per square meter for apartments in Dubai reached AED 1,256, while for villas it reached AED 1,484. Although average sales prices for apartments are still 15.6 percent below the record levels of the end of 2014, some neighborhoods have already surpassed 2014 prices. On the other hand, average sales prices for villas are now 2.7 percent above their 2014 peak.
In terms of the highest sales prices per square meter, Jumeirah leads the residential segment with AED 2,367, while Palm Jumeirah takes the top spot in the villa segment with AED 4,635.
As far as the rental market is concerned, average rents have risen remarkably. From last year to April 2023, rents rose by 25.8 percent, with apartments and villas recording significant growth rates of 25.7 percent and 26.1 percent respectively.
In April 2023, the average annual rent for apartments was AED 102,675, while it reached AED 308,616 for villas. Palm Jumeirah had the highest average annual rent for apartments at AED 263,762 and Al Barari led the villa segment with an average rent of AED 1,007,938.
Taimur Khan, Head of Research – MENA at CBRE in Dubai, emphasizes the continued robustness of the residential market. A record-breaking 36,946 transactions were recorded in the first four months of 2023, an increase of 43.2% compared to the previous year.
Source: www.arabianbusiness.com
