According to CBRE research, Dubai has had “record levels” of demand for residential properties, with transaction volumes reaching 8,515 in February 2023. This represented a 43.8% increase from the prior year and was the highest February figure ever.
The average yearly asking rent for flats was AED99,737 and that for villas was AED295,436 as of February 2023. Average rentals in Dubai have increased significantly from the prior year by 27.7%, with apartments seeing a slightly greater increase than villas (26.3% vs. 27.9%).
A 78.1% increase in off-plan market sales and an 18.8% increase in secondary market sales have supported this expansion. The number of residential transactions reported in the year as of February 2023 is 17,741, which is a record high for the first two months of a year.
The most significant sales per square foot were recorded for apartments in Jumeirah, hitting AED2,388. The greatest sales per square foot for villas were recorded at Palm Jumeirah, reaching AED4,300. The research stated that as of February 2023, Palm Jumeirah had the highest rental rates for both flats and villas, with average yearly rents reaching AED260,467 and AED1,017,614, respectively.
While average villa prices increased by 13.6%, average apartment prices increased by 11.2%. The survey also stated that in February 2023, the average price of an apartment in Dubai was AED1,211 per square foot, while the average price of a villa was AED1,432 per square foot.
These average rates are still below the highs reached in late 2014, the researchers noted, adding that numerous communities have now eclipsed 2014 statistics for both apartments and villas, which are correspondingly 18.6% and 0.9% below this peak.
