RIYADH: Dubai property market continues to grow at an unprecedented rate, with the transaction volumes reaching record highs of 11,597 in March alone, cumulating a total volume of 29,323 in the first quarter of 2023, according to a new report.
In its Dubai Residential Market Snapshot, the global property consultancy firm CBRE pointed out that the March figure is the highest monthly total that the emirate has ever recorded, marking a growth rate of 47.3 percent compared to the year prior.
‘This increase has been supported by a 96.1 percent growth in off-plan market transactions and a 12.4 percent increase in secondary market transactions,” the report said, adding that the total transaction volume recorded in the first quarter of 2023 is also the highest total ever registered.
This comes despite the fact that Dubai property prices are continuing to rise, with average residential prices increasing by 12.8 percent in the year through March 2023.
The report noted that the average apartment and villa prices also increased by 12.4 percent and 14.8 percent respectively, over the same period.
As of March 2023, average apartment prices in Dubai stood at 1,234 dirhams ($336) per square foot, noted CBRE, adding that average villa prices were 1,455 dirhams per square foot.
However, CBRE said average apartment sales rates are still 17.1 percent below the highs of 2014. Although, it added that there are a number of premium locations where the rates are now above their 2014 levels. In terms of the average villa sales rates, those have now surpassed their 2014 high and sit 0.7 percent above that figure.
Consequently, Dubai’s average residential rents have also grown by 26.3 percent in a year-on-year comparison ending in March 2023, with average apartment and villa rents rising by 26.3 percent and 26.2 percent respectively.
As of March 2023, the average yearly apartment and villa rents have reached 101,044 dirhams and 300,984 dirhams respectively.
Despite rental rates also reaching significant levels, we have started to observe a slight moderation in the rental market,” said Taimur Khan, Head of Research – MENA at CBRE in Dubai.
In the year to March 2023, he pointed out that the pace of rental growth has slowed to 26.3 percent, down from the 27.7 percent increase registered the prior month. “This moderation trend is likely to continue and can be seen in the increasing number of listings reducing their rental rates in key residential areas such as Downtown Dubai, Dubai Marina, and Palm Jumeirah,” added Khan.
