Dubai – June 12, 2023 – A total of 10,934 transactions were registered in Dubai’s residential market in May 2023, highlighting a growth of 76.6% compared to the previous year. Over this period, off-plan sales increased by 107.2%, and secondary market sales by 52.7%. The total volume of transactions in the year to date to May 2023 reached 47,850, the highest level on record over this period. Average residential prices in Dubai grew by 15.9% in the year through May 2023, with average apartment prices increasing by 15.9% and average villa prices by 16.0% over the same period. In May 2023, average apartment prices stood at AED 1,277 per square foot, and average villa prices stood at AED 1,517 per square foot. Average apartment sales rates per square foot are still 14.2% below the record highs of 2014, although a number of neighbourhoods have long surpassed their 2014 figures. Conversely, average villa sales rates are currently 5.0% above their 2014 peak. Jumeirah recorded the highest sales rate per square foot in the apartment segment of the market, at AED 2,410, whilst 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 grew by 24.2% in the year to May 2023, down from the 25.8% growth rate registered in the prior month. Over this period, average apartment rents rose by 24.1% and average villa rents by 24.8%. As of May 2023, the average apartment and villa asking rents reached AED 103,646 and AED 311,655 per annum, respectively. The highest average annual apartment and villa rents were respectively seen in Palm Jumeirah, where rents reached an average of AED 262,018, and in Al Barari, where average rents stood at AED 1,006,881. Taimur Khan, Head of Research – MENA at CBRE in Dubai, comments: “Dubai’s residential market continues to showcase strong levels of demand. In the year to date to May 2023, a total of 47,850 transactions have been registered, marking a year-on-year growth of 49.6%. This is the highest total ever recorded over this period – for reference, this figure was only around 12,888 in 2019. Given these robust activity levels, average apartment and villa prices grew by 15.9% and 16.0% respectively and we expect that the strong levels of demand will keep on supporting price growth. On the other hand, we continue to witness a slight moderation in the growth rate in the rental market for the fourth consecutive month, with average rents growing by 24.2% in the year through May 2023 compared to 25.8% registered a month earlier. This is due to the reduction in asking rents in a number of key residential areas, particularly in the apartment segment, where rents in several prime communities are now heading towards a single-digit growth. However, multiple secondary areas are still recording significant increases in their rental rates, albeit these areas are behind the curve compared to the wider market.”
