While rent increases showed signs of moderation in May 2023 in Dubai’s residential real estate sector, sales prices continued to grow, surpassing average price levels during the last peak in 2014.

A report by real estate consultant CBRE shows that there were 10,934 residential real estate transactions in May 2023, up 76.6% since May 2022, increasing by 107.2% in the offplan sector and 52.7% in the secondary market.

The total volume of transactions in the year up to May 2023 reached 47,850, the highest level on record over this period, CBRE said.

Average prices overall were up 15.9% in the year up to May 2023, with average apartment prices increasing by 15.9% and average villa prices by 16% over the same period.

Average apartment sales rates per square foot are still 14.2% below the record highs of 2014, although many neighbourhoods have long surpassed their 2014 figures. 

However, average villa sales rates are currently 5% above their 2014 peak, CBRE said

Jumeirah recorded the highest sales rate per square foot in the apartment segment of the market, at AED 2,410, while Palm Jumeirah recorded the highest sales rate per square foot in the villa segment of the market at AED 4,692. 

Average rents in Dubai grew by 24.2% in the year to May 2023, compared with the 25.8% growth rate registered in the year to April 2023.  

Over this period, average apartment rents rose by 24.1% and average villa rents by 24.8%. 

Month on month, the largest sales price increase for apartments was for the Palm Jumeirah, at 4.9%, while prices fell the most in Damac Hills Akoya by 3.1%. 

For villa sales month on month, prices grew by the most in the Meadows, by 5%, and fell the most in Mohammed bin Rashid City by 3.1%. 

Apartment rents grew the fastest month-on-month in Deira, where they increased by 4.5%, and fell fastest in Jumeirah Beach Residence, by 2%. 

For villa rents, they grew the fastest m-o-m in Emirates Hills, by 4.9%, but fell the fastest by 4.9% in Al Furjan. 

(Reporting by Imogen Lillywhite; editing by Seban Scaria)

(imogen.lillywhite@lseg.com)