Press Release

CBRE releases its Dubai Residential Market Snapshot – March 2023

Record levels of demand recorded in Dubai’s residential market during first two months of 2023

March 13, 2023

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In February 2023, total transaction volumes in Dubai’s residential market reached 8,515, a 43.9% increase from the previous year and the highest February figure on record. This growth has been underpinned by a 78.1% increase in off-plan market sales, along with an 18.8% increase in secondary market sales. 17,741 residential transactions have been recorded in the year to date to February 2023, the most on record during the first two months of the year.

In the year to February 2023, average prices rose by 11.5%, where average apartment prices rose by 11.2% and average villa prices by 13.6%. As of February 2023, average apartment prices in Dubai reached AED 1,211 per square foot, and average villa prices reached AED 1,432 per square foot. These average rates still sit below the highs witnessed in late 2014, with apartments and villas remaining 18.6% and 0.9% below this peak. However, several communities have already surpassed their 2014 figures.
In the apartment segment of the market, Jumeirah registered the highest sales rate per square foot, reaching AED 2,388, whereas, in the villa segment of the market, Palm Jumeirah registered the highest sales rate per square foot, reaching AED 4,309.

In the year through February 2023, average rents in Dubai have increased by 27.7%. Over this period, average apartment and villa rents have increased by 27.9% and 26.3%, respectively. The average annual apartment and villa asking rents reached AED 99,737 and AED 295,436, respectively, as of February 2023.

The highest rental rates for both apartments and villas have been seen in Palm Jumeirah, with average annual rents reaching AED 260,467 and AED 1,017,614, respectively.
  

“In February, we have seen the strong start to the year, in demand terms, continue in Dubai’s residential market, with the total volume of transactions reaching the highest total recorded in the first two months of the year. 17,741 residential transactions have been registered in the year to date to February 2023. This record level of activity is supporting growth in average prices, where in the year through February 2023, average apartment and villa prices have increased by 11.2% and 13.6%, respectively.

In the rental market, average rents have continued to register significant growth, where we have seen rental rates growing by an average of 27.7% in the year through February 2023. As a result, we have seen that tenants are more likely to renew their existing leases; where based on Ejari figures, the number of new registrations year-on-year in the year to date to February 2023 has decreased by 13.0%, whilst the number of renewals has grown by 30.7%.”


Taimur Khan, Head of Research – MENA at CBRE in Dubai
 
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