Dubai’s residential market has reached record activity levels in November with its total transaction volumes hitting 10,505, up 60% over last year, mainly backed by a sharp rise in the off-plan and secondary market transactions, according to global property expert CBRE.

In the year to date to November 2022, a total of 81,919 residential transactions have been recorded, surpassing the record highs registered in 2009 over the same period, stated CBRE in its Dubai Residential Market Snapshot – December 2022.

In the 12 months to November 2022, average prices increased by 9.5%. Over this period, average apartment and villa prices increased by 9.0% and 12.7%, respectively, it added.

According to CBRE, Dubai’s average apartment prices stood at AED1,161 per sq ft, while average villa prices stood at AED1,374 per sq ft.

These average rates for apartments and villas remain below the highs recorded in 2014 by 22.0% and 4.9%, respectively, it stated.

Taimur Khan, the Head of Research (Mena), said: "Activity levels in Dubai’s residential market have reached record levels in the year-to-date to November with total transactions volume reaching 81,919, surpassing record highs of full year 2009, when transaction numbers totaled 81,182."

"This strong level of activity has continued to support increases in average prices, which for apartments and villas have risen by 9.0% and 12.7% in the 12 months to November 2022 respectively. However, we are seeing the rate of average price growth slowing, particularly in the villa market, a trend which we expect the apartment market to follow suit in the short run," he cautioned.

"That being said, certain prime markets will continue to record strong growth rates," he added.

According to him, in the apartment segment, Jumeirah registered the highest sales rate per sq ft at AED2,310, while in the villa segment of the market, Palm Jumeirah clocked the highest sales rate per sq ft at AED3,802.

Average asking rents rose by 27.3% in the year to November, with average apartment rents increasing by 27.6% and average villa rents by 25.4%, respectively.

In the rental market, Palm Jumeirah registered the highest average annual apartment and villa rents, where asking rents reached an average of AED243,219 and AED 982,047, respectively, he noted.

Khan pointed out that in the rental market, average rents were continuing to grow at near record highs.

"In response, tenants seem more likely to renew existing tenancies. That has been portrayed through Ejari data, which shows that the number of new contracts registered year-on-year in the year to date to November 2022 dropped by 5.8%, whereas renewals increased by 33.8%," he added.

Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).