Press release
Dubai’s residential market reaches record highs in the first quarter of 2023
CBRE releases its Dubai Residential Market Snapshot – April 2023
April 14, 2023
In March 2023, 11,597 residential transactions were registered in Dubai, the highest monthly total ever recorded, marking a growth rate of 47.3% compared to the year prior. This increase has been supported by a 96.1% growth in off-plan market transactions and a 12.4% increase in secondary market transactions. In the year to date to March 2023, the total transaction volume reached 29,323, which is the highest total ever registered during the first quarter of the year.
Average residential prices in Dubai have increased by 12.8% in the year through March 2023, with average apartment prices increasing by 12.4% and average villa prices by 14.8% over the same period. As at March 2023, average apartment prices stood at AED 1,234 per square foot, and average villa prices stood at AED 1,455 per square foot. Average apartment sales rates are still 17.1% below the highs of 2014, although there are a number of submarkets where these rates are now above their 2014 levels. Average villa sales rates across Dubai have now surpassed their 2014 high and now sit 0.7% above this figure.
Jumeirah has recorded the highest sales rate per square foot in the apartment segment of the market, reaching AED 2,441, whilst Palm Jumeirah has recorded the highest sales rate per square foot in the villa segment of the market, reaching AED 4,457.
Dubai’s average residential rents have grown by 26.3% in the year to March 2023, with average apartment rents rising by 26.3% and average villa rents by 26.2%. As at March 2023, the average yearly apartment and villa rents have reached AED 101,044 and AED 300,984, respectively.
The highest average apartment and villa rents have been registered in Palm Jumeirah, where average rents reached AED 264,537 and AED 1,000,489 per annum, respectively.
Average residential prices in Dubai have increased by 12.8% in the year through March 2023, with average apartment prices increasing by 12.4% and average villa prices by 14.8% over the same period. As at March 2023, average apartment prices stood at AED 1,234 per square foot, and average villa prices stood at AED 1,455 per square foot. Average apartment sales rates are still 17.1% below the highs of 2014, although there are a number of submarkets where these rates are now above their 2014 levels. Average villa sales rates across Dubai have now surpassed their 2014 high and now sit 0.7% above this figure.
Jumeirah has recorded the highest sales rate per square foot in the apartment segment of the market, reaching AED 2,441, whilst Palm Jumeirah has recorded the highest sales rate per square foot in the villa segment of the market, reaching AED 4,457.
Dubai’s average residential rents have grown by 26.3% in the year to March 2023, with average apartment rents rising by 26.3% and average villa rents by 26.2%. As at March 2023, the average yearly apartment and villa rents have reached AED 101,044 and AED 300,984, respectively.
The highest average apartment and villa rents have been registered in Palm Jumeirah, where average rents reached AED 264,537 and AED 1,000,489 per annum, respectively.
The Dubai residential market has continued its record start to the year. March 2023 recorded a total of 11,597 transactions, the highest monthly total ever registered. More so, during the first quarter, a total of 29,323 sales transactions were registered. This is the highest total ever recorded in the first quarter of the year. Given this elevated level of activity, we have seen average price growth accelerate to 12.8% in the year to March 2023, up from 11.5% a month earlier. During this period, average apartment and villa prices rose by 12.4% and 14.8%, respectively.
Despite rental rates also reaching significant levels, we have started to observe a slight moderation in the rental market. In the year to March 2023, the pace of rental growth has slowed to 26.3%, down from the 27.7% increase registered the prior month. This moderation trend is likely to continue and can be seen in the increasing number of listings reducing their rental rates in key residential areas such as Downtown Dubai, Dubai Marina, and Palm Jumeirah. In these selected markets, 16.1%, 14.9%, and 12.6% of listed properties reduced their rental rates respectively, a marked change from last month and a signal that the peak may have been reached.