Rental growth rises in Dubai’s residential market, despite dropping price growth: CBRE
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Rental growth rising in Dubai’s residential market, despite price growth moderating: CBRE

Rental growth rising in Dubai’s residential market, despite price growth moderating: CBRE

Average rents in the 12 months to June increased by 21.7 per cent, with average apartment and villa rents increasing by 21.2 per cent and 24.7 per cent, respectively

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Dubai Rental Market on the uptick in June GettyImages-1392301478

Commercial real estate and investment company, CBRE has revealed that the total volume of transactions in Dubai’s residential market reached 7,941 in June, up 33.3 per cent from a year earlier. Off-plan sales increased by 46.7 per cent and secondary market sales by 24.4 per cent.

Total transaction volumes in the year-to-date to June reached 38,901, which is the highest total recorded since 2009, over this period.

Average prices increased by 10.1 per cent in the year to June. Over this period, average apartment prices increased by 8.7 per cent and average villa prices by 19.3 per cent. As of June 2022, average apartment prices in Dubai stood at Dhs1,103 per square foot and average villa prices stood at Dhs1,324 per square foot.

Compared to the highs witnessed in late 2014, these rates per square foot are 25.8 per cent and 8.3 per cent below the peak, for apartments and villas respectively.

In the apartments segment of the market, Jumeirah recorded the highest average sales rate per square foot at Dhs2,079. Whereas in the villas segment of the market, Palm Jumeirah recorded the highest average sales rate per square foot at Dhs3,365.

Average rents in the 12 months to June increased by 21.7 per cent, with average apartment and villa rents increasing by 21.2 per cent and 24.7 per cent respectively. As at June 2022, average apartment and villa rents stood at Dhs85,294 and Dhs255,437 per annum, respectively.

In the rental market, the highest average annual apartment and villa rents respectively were found in Palm Jumeirah, where asking rents on average were Dhs218,413, and in Al Barari, where asking rents on average were Dhs889,225.

Taimur Khan, head of research – MENA at CBRE in Dubai, said: “Transaction activity in Dubai’s residential market continues to remain near historic highs, with total transactions in the year-to-date to June 2022 reaching 38,901 this is the highest total recorded since 2009, over this period. More so, while the rate of price growth has tapered to 10.1 per cent in the year to June 2022, the rate of rental growth continues to accelerate, where rents increased by 21.6% over the same period. Rents, on average, are increasing at the fastest rate since mid-2014.”

Looking for more information on the best places to rent and buy property in Dubai?
Read Mo’asher 2022: The latest updates from Dubai’s official residential real estate performance index

 

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