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  • 16-04-23

    Dubai's Property Market Booms Despite Rising Prices in Q1 2023

    (MENAFN) Dubai's property market continues to surge, with transaction volumes reaching a record high of 11,597 in March 2023, according to a report by CBRE, the global property consultancy firm. The report highlights that this figure is the highest monthly total that the emirate has ever recorded, marking a growth rate of 47.3 percent compared to the year prior. Furthermore, the total transaction volume recorded in the first quarter of 2023 is also the highest total ever registered, totaling 29,323.

    The growth is supported by a 96.1 percent increase in off-plan market transactions and a 12.4 percent increase in secondary market transactions. Despite the rising prices, average residential prices in Dubai have increased by 12.8 percent in the year through March 2023, with the average apartment and villa prices increasing by 12.4 percent and 14.8 percent, respectively, over the same period.

    As of March 2023, the average apartment prices in Dubai stood at 1,234 dirhams (USD336) per square foot, while the average villa prices were 1,455 dirhams per square foot. However, the report notes that average apartment sales rates are still 17.1 percent below the highs of 2014, while there are a number of premium locations where the rates are now above their 2014 levels. In terms of average villa sales rates, those have now surpassed their 2014 high and sit 0.7 percent above that figure.

    Dubai's average residential rents have also grown by 26.3 percent in a year-on-year comparison ending in March 2023, with average apartment and villa rents rising by 26.3 percent and 26.2 percent, respectively. As of March 2023, the average yearly apartment and villa rents have reached 101,044 dirhams and 300,984 dirhams, respectively.

    Despite the high rental rates, CBRE's Head of Research – MENA in Dubai, Taimur Khan, points out that the pace of rental growth has slowed to 26.3 percent in the year to March 2023, down from the 27.7 percent increase registered the prior month. Khan believes that this moderation trend is likely to continue, as an increasing number of listings are reducing their rental rates in key residential areas such as Downtown Dubai, Dubai Marina, and Palm Jumeirah.

    MENAFN16042023000045014228ID1106019379

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