While rent increases in Dubai’s residential real estate sector showed signs of slowing down in May 2023, sales prices continued to rise, surpassing average price levels during the last peak in 2014.
According to a report by property consultants CBRE, there were 10,934 residential property transactions in May 2023, up from 76.6% since May 2022, increasing by 107.2% in the off-plan sector and 52.7% in the secondary market.
The total volume of transactions in the year to May 2023 reached 47,850, the highest level on record for the period, CBRE said.
Average prices as a whole increased 15.9% in the year up to May 2023, with average home prices increasing 15.9% and average villa prices increasing 16% over the same period.
Average home sales rates per square foot are still 14.2% below the record values of 2014, although many neighbourhoods have long since exceeded their 2014 values. However, average villa sales rates are currently 5% above their 2014 peak, CBRE said.
Jumeirah recorded the highest sales rate per square foot in the apartment segment of the market at AED 2,410, while Palm Jumeirah recorded the highest sales rate per square foot in the villa segment of the market at AED 4,692.
Average rents in Dubai increased by 24.2% in the year to May 2023, compared to a growth rate of 25.8% in the year to April 2023.
During this period, average apartment rents increased by 24.1% and average villa rents increased by 24.8%.
The month-on-month, Palm Jumeirah saw the largest increase in home sales prices, up 4.9%, while prices fell the most in Damac Hills Akoya, down 3.1%.
For villa sales, month-on-month prices rose the most in the Meadows, up 5%, and fell the most in the city of Mohammed bin Rashid, down 3.1%.
Apartment rents rose the fastest month-on-month in Deira, where they rose 4.5%, and fell the fastest in Jumeirah Beach Residence, down 2%.