Rental rates in Dubai continue to amass impressive growth rates in the city’s soaring real estate market. Average rental rates rose by 26.6% on a year-to-year basis in September 2022. The average rent for apartments and villas also rose, but by 26.7% and 25.5%, respectively. The international real estate services and investment firm, CBRE, convey this in its latest insights within its ‘Dubai Residential Market Snapshot’ research.
SALES DATA FROM THE DUBAI RESIDENTIAL MARKET SNAPSHOT
The total volume of transactions in Dubai's residential market reached 7,273 in September 2022. This is an increase of 33.4% over the previous year. Within this same period, off-plan and secondary market sales grew by 51.4% and 17.3%, respectively. The overall transaction volume in the year ending in September 2022 increased to 62,396, the highest level since 2009.
Average prices also increased over the year leading up to September 2022, but by 8.9%. The average increase in prices for apartments and villas was 8.0% and 14.3%, respectively. Equally, on a square foot basis, average villa and apartment prices were AED 1,350 per square foot and AED 1,133 per square foot. These average rates are still lower than the highs reached in late 2014. Apartment and villa prices are still 23.8% and 21.6% below this peak, respectively.
AREAS WITH THE HIGHEST AVERAGE SALES PRICE
Dubai’s highest average sales price per square foot was in Jumeriah in the market for apartments. This average price equated to AED 2,156 per square foot. While Palm Jumeirah had the highest average sales price per square foot in the market for villas at AED 3,597 per square foot.
Putting the sale prices in Palm Jumeirah into perspective is the recent sale of Casa Del Sole. The eight-bedroom villa on Palm Jumeirah’s Billionaire’s Row recently sold for AED 302.5 million. This makes the property the most expensive villa to be sold in Dubai.
AREAS WITH THE HIGHEST AVERAGE YEARLY RENTAL RATES
Dubai’s highest average apartment rental rates were in Palm Jumeirah, where the average yearly rent equated to AED 231,397. While the highest average villa rental rates were in Al Barari, where the average yearly rent equated to AED 946,270.
These rental rates are both considerably higher than the average rental rates for the whole of Dubai during September 2022. The average yearly rental rate for an apartment in Dubai was AED 90,000, while the average yearly rental rate for a villa in Dubai was AED 269,000.
