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Dubai real estate market hits new high in November

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As per CBRE, the average price of a Dubai apartment was AED 1,161 per square foot

According to US-based CBRE Group, a global real estate expert, Dubai’s residential market was busier than ever in November, 2022, with 10,505 transactions, up 60% from 2021. A sharp rise in off-plan and secondary market transactions primarily drove this increase.

As per CBRE’s “Dubai Residential Market Snapshot, December 2022”, some 81,919 residential transactions were reported in the year to date through November 2022, breaking the previous record highs set during the same period in 2009.

The average price rose by 9.5% during the year ending in November 2022. The average cost of an apartment increased by 9.0%, while the villa price hiked by 12.7%.

As per CBRE, the average price of a Dubai apartment was AED 1,161 per square foot, while the average cost of a villa was AED 1,374 per square foot.

The apartment and villa prices are however, still 22.0% and 4.9% lesser than the 2014 highs.

Head of Research at Mena, Taimur Khan, said, “Activity levels in Dubai’s residential market have reached record levels in the year-to-date to November with total transactions volume reaching 81,919, surpassing record highs of full year 2009, when transaction numbers totaled 81,182.”

“The average price of flats and villas increased by 9.0% and 12.7%, respectively, in the 12 months leading up to November 2022 thanks to this high level of activity. However, we are observing a decrease in the rate of average price growth, notably in the villa market, and in the near future, we anticipate the apartment market to follow suit,” Taimur Khan added.

He continued, “That being said, certain prime markets will continue to record strong growth rates.”

As per Khan, Jumeirah had the highest sales rate per square foot in the apartment market at AED 2,310, while Palm Jumeirah had the highest sales rate per square foot in the villa market at AED 3,802.

In the year leading up to November, average asking rentals increased by 27.3%, with average apartment rents rising by 27.6% and average villa rents rising by 25.4%, respectively.

Taimur Khan emphasized that typical rents in the rental sector rose at rates very close to records.

“In reaction, tenants appear more likely to extend their current leases. As a result, the number of new contracts registered year over year ending in November 2022 decreased by 5.8%, while renewals grew by 33.8%, according to Ejari statistics, which illustrates this,” Taimur Khan remarked.

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