Prices continue to soar in Dubai’s residential market in July 2023, says CBRE

Dubai:– In July 2023, the total volume of residential transactions in Dubai reached 10,080, a year-on-year growth of 53. 4%. This has been supported by a 78.

4% increase in off-plan market sales and a 33. 8% rise in secondary market sales. The total transaction volumes in the year to date to July 2023 reached 67,818.

This is the highest total ever recorded over this period. Dubai’s residential sales market continues to register strong levels of price growth, where in the year to July 2023, average prices increased by 18. 1%, up from the 16.

9% rate of growth recorded in June 2023. Over the same period, average apartment prices increased by 18. 5%, reaching AED 1,320 per square foot, and average villa prices increased by 16.

2%, reaching AED 1,552 per square foot. Average apartment sales rates still sit at 11. 3% below the record levels witnessed in late 2014, although a number of core and prime submarkets have long outperformed their 2014 levels.

Average villa prices are now above their 2014 comparable peak by 7. 4%. In both the apartment and villa segments of the market, Palm Jumeirah registered the highest price points, with average sales rates per square foot reaching AED 2,463 and AED 4,943, respectively.

The rental market continued to experience moderation for the sixth consecutive month, where Dubai’s average residential rents grew by 22. 0% in the year through July 2023, down from the 22. 8% increase registered in June 2023.

Over this period, average apartment rents grew by 21. 9%, and average villa rents rose by 22. 6%.

As of July 2023, the average yearly apartment and villa asking rents reached AED 105,691 and AED 319,994, respectively. The highest average annual apartment and villa rents were found in Palm Jumeirah, where asking rents reached an average of AED 256,785, and in Al Barari, where asking rents stood at an average of AED 1,094,034. Taimur Khan, Head of Research – MENA at CBRE in Dubai, comments: “Activity levels remain elevated in Dubai’s residential market, notwithstanding the summer lull, where in July 2023, a total of 10,080 transactions were registered, marking a 53.

4% increase compared to a year earlier. In the year to date to July 2023, the volume of transactions totalled 67,818. This is the highest level registered over this period, comfortably outperforming the previous 2022 record-high figure of 46,883.

On the back of the prevailing fundamentals, we expect that the 2023 total transaction volumes will likely surpass the historic level registered in 2022. This strong level of activity continues to underpin price growth, where average sales prices accelerated at the fastest pace since late 2014, increasing by 18. 1% in the year to July 2023, up from the 16.

9% rate registered a month earlier. Residential rents in Dubai registered a year-on-year increase of 22. 0% in July 2023, down marginally from 22.

8% in June 2023. Demand in the rental market has also increased further, where year-on-year in the year to date to July 2023, the total number of rental registrations has grown by 8. 8%.

Although, over this period, new rental contracts registered substantially dropped by 12. 6%, renewed rental registrations increased by 29. 0%.

Given the current market backdrop, vis-à-vis the lack of supply and exacerbated demand levels, we expect that rents in Dubai will continue to increase moving forward, albeit at a slower pace. ” -Ends- About CBRE Group, Inc. CBRE Group, Inc.

(NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2022 revenue). The company has approximately 115,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.

Please visit our website at www. cbre. com .

Mehdi Aliouat Head of Marketing & Communications – MENA CBRE | Middle East Region Level Five | Building Six | EMAAR Square PO Box 506961 | DUBAI, UNITED ARAB EMIRATES mehdi. aliouat@cbre. com | LinkedIn.