The Dubai real estate sector has witnessed a remarkable recovery and growth in the past year, as CBRE analysis reveals. Sale prices have surged by more than 19 percent and rents have soared by over 21 percent, reflecting the strong demand and limited supply in the market.
The residential market in Dubai has recorded an impressive volume of transactions, reaching 11,328 in August 2023. This is the second-highest monthly figure ever registered, up by 22 percent compared to the same month last year.
Dubai real estate boom The off-plan segment of the market has been particularly active, with sales increasing by 58.7 percent year-on-year, while secondary market sales declined by 10.2 percent.
From January to August 2023, a total of 79,605 transactions were registered, the highest on record over this period.
The sales market has also experienced significant price appreciation. In the 12 months to August 2023, average prices rose by 19.6 percent, up from 18.1 percent a month earlier.
Over this period, average apartment prices rose by 20 percent, and average villa prices rose by 17.3 percent.
As of August 2023, average apartment prices reached AED1,344 per square foot, and average villa prices reached AED1,571 per square foot.
Average apartment sales rates are still 9.6 percent below their peak level in 2014; however, some communities have already surpassed their previous highs.
Average villa sales rates, on the other hand, are now 8.7 percent above their peak level in 2014.
In the apartment segment of the market, Downtown Dubai registered the highest sales rate per square foot at AED2,460, whereas, in the villa segment of the market, Palm Jumeirah registered the highest sales rate per square foot at AED4,915.
The rental market has also seen robust growth, albeit at a slightly slower pace.
Average rents in Dubai rose by 21.7 percent in the year to August 2023, down marginally from 22 percent in July 2023.
Over this period, average apartment rents increased by 21.5 percent, and average villa rents rose by 22.6 percent.
In August 2023, the average apartment and villa rents stood at AED106,674 ($29,000) and AED322,573 ($88,000) per annum, respectively.
The most expensive apartment and villa rents were recorded in Palm Jumeirah, with average rents reaching AED257,173 ($70,000) and in Al Barari, with average rents reaching AED1,108,164 ($302,000).
Taimur Khan, Head of Research – MENA at CBRE in Dubai ¹, said: “Dubai’s residential market continues to showcase its resilience and attractiveness to both local and international investors.
“In the year to date to August 2023, the total volume of transactions reached 79,605, the highest on record over this period, marking an increase of 41.7 percent from the previous year.
“These strong activity levels within the sales market are driving higher price growth, where in August 2023, average prices registered a year-on-year increase of 19.6 percent, up from the 18.1 percent increase recorded in July 2023.
“However, we are also observing some signs of moderation in the prime segment of the market, where price growth is slowing down in some core and prime residential areas.
“Although demand remains high, we are seeing that the rate of rental growth continues to moderate, making this the seventh consecutive month in which this has occurred.
“A total of 376,211 rental transactions were registered in the year to date to August 2023, marking an 8.7 percent increase compared to the year prior, and a 48 percent increase from the comparable 2019 period.
“This growth has been supported by a 28 percent growth in renewed registrations, while new rental contracts registered have dropped by approximately 12 percent.
“This significant decline in new rental registrations arises from the elevated costs that can be incurred when relocating or taking on new leases, which as a result has created substantial bifurcations between new and renewed rental rates .”
The Dubai real estate sector has witnessed a remarkable recovery and growth in the past year, as CBRE analysis reveals. Sale prices have surged by more than 19 percent and rents have soared by over 21 percent, reflecting the strong demand and limited supply in the market.
The residential market in Dubai has recorded an impressive volume of transactions, reaching 11,328 in August 2023. This is the second-highest monthly figure ever registered, up by 22 percent compared to the same month last year.
Dubai real estate boom The off-plan segment of the market has been particularly active, with sales increasing by 58.7 percent year-on-year, while secondary market sales declined by 10.2 percent.
From January to August 2023, a total of 79,605 transactions were registered, the highest on record over this period.
The sales market has also experienced significant price appreciation. In the 12 months to August 2023, average prices rose by 19.6 percent, up from 18.1 percent a month earlier.
Over this period, average apartment prices rose by 20 percent, and average villa prices rose by 17.3 percent.
As of August 2023, average apartment prices reached AED1,344 per square foot, and average villa prices reached AED1,571 per square foot.
Average apartment sales rates are still 9.6 percent below their peak level in 2014; however, some communities have already surpassed their previous highs.
Average villa sales rates, on the other hand, are now 8.7 percent above their peak level in 2014.
In the apartment segment of the market, Downtown Dubai registered the highest sales rate per square foot at AED2,460, whereas, in the villa segment of the market, Palm Jumeirah registered the highest sales rate per square foot at AED4,915.
The rental market has also seen robust growth, albeit at a slightly slower pace.
Average rents in Dubai rose by 21.7 percent in the year to August 2023, down marginally from 22 percent in July 2023.
Over this period, average apartment rents increased by 21.5 percent, and average villa rents rose by 22.6 percent.
In August 2023, the average apartment and villa rents stood at AED106,674 ($29,000) and AED322,573 ($88,000) per annum, respectively.
The most expensive apartment and villa rents were recorded in Palm Jumeirah, with average rents reaching AED257,173 ($70,000) and in Al Barari, with average rents reaching AED1,108,164 ($302,000).
Taimur Khan, Head of Research – MENA at CBRE in Dubai ¹, said: “Dubai’s residential market continues to showcase its resilience and attractiveness to both local and international investors.
“In the year to date to August 2023, the total volume of transactions reached 79,605, the highest on record over this period, marking an increase of 41.7 percent from the previous year.
“These strong activity levels within the sales market are driving higher price growth, where in August 2023, average prices registered a year-on-year increase of 19.6 percent, up from the 18.1 percent increase recorded in July 2023.
“However, we are also observing some signs of moderation in the prime segment of the market, where price growth is slowing down in some core and prime residential areas.
“Although demand remains high, we are seeing that the rate of rental growth continues to moderate, making this the seventh consecutive month in which this has occurred.
“A total of 376,211 rental transactions were registered in the year to date to August 2023, marking an 8.7 percent increase compared to the year prior, and a 48 percent increase from the comparable 2019 period.
“This growth has been supported by a 28 percent growth in renewed registrations, while new rental contracts registered have dropped by approximately 12 percent.
“This significant decline in new rental registrations arises from the elevated costs that can be incurred when relocating or taking on new leases, which as a result has created substantial bifurcations between new and renewed rental rates .”