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The number of residential transactions in Dubai fell in April from March’s record high, to 7,615, but still saw 16.2% year-on-year growth, according to a new report.
The growth in residential sales has been underpinned by a 42.5% increase in off-plan market sales, whilst secondary market sales have dropped by 2.4%, CBRE said in a report.
In the year-to-date April 2023, 36,946 transactions have been registered, the CBRE said, the highest total ever recorded over this period, with average apartment prices increasing by 14.5% and average villa prices by 14.9%.
Whilst average apartment sales rates across Dubai still are still at 15.6% below the record levels registered in late 2014, several neighbourhoods have surpassed 2014 levels. Average villa sales rates are 2.7% above their 2014 peak, the CBRE said.
Jumeirah saw the highest sales rate per square foot, reaching AED 2,367. For villas, Palm Jumeirah registered the highest sales rate per square foot at AED 4,635.
In the rental market, average rents in the year through April 2023 increased by 25.8%, where average apartment and villa rents grew by 25.7% and 26.1, respectively.
The average annual apartment and villa rents stood at AED 102,675 and AED 308,616, respectively, in April 2023. The highest average annual apartment and villa asking rents were found in Palm Jumeirah, with average rents reaching AED 263,762, and in Al Barari, with average rents reaching AED 1,007,938.
Taimur Khan, head of research, MENA at CBRE in Dubai, said: “To put recent price growth into perspective, average prices in all villa communities and in 72.7% of apartment communities that CBRE monitors now sit above their 2019 levels (as of April 2023).
“Looking at the rental market, we have started to see a slight moderation, where the growth rate has tapered off for the third consecutive month. Average rents increased by 25.8% in the year to April 2023, down from 26.3% a month earlier.”
(Reporting by Imogen Lillywhite; editing by Seban Scaria)
