With a total volume of 7,865 transactions in March 2022, Dubai experienced its best-ever first quarter in terms of residential transactions, up 83.4 percent from the previous quarter.
Off-plan sales surged by 94.6 percent in the quarter, while secondary market sales increased by 76.1 percent. Overall transaction volumes in the first quarter of 2022 reached 19,009, which is the highest number ever recorded in the first quarter.
Strong Rental Returns
According to real estate experts, the market offers strong rental returns. Following a relatively quiet third quarter, average apartment rents in Dubai jumped by 4% in Q4 2021, the largest increase since 2014. Dubai’s status as a global commercial hub, competitive real estate pricing, high rental returns, and expanded residency options, according to Chestertons’ Research, make it ideal for new home buyers.
Strong returns on investment (ROI) are no longer limited to core sites like Downtown Dubai or Dubai Marina, according to the real estate consultant, but can now be found in vibrant outlying districts including Sports City, Jumeirah Village Circle, Arjan, Arabian Ranches, and Al Barsha South.
Prices for Apartments and Villas
Average prices increased by 11.3 percent in the year preceding up to March 2022, according to CBRE research. During this time, the average price of an apartment increased by 10%, while the average price of a villa increased by 20%. In March 2022, the average apartment in Dubai cost Dh1,118 per square foot, while the average villa cost Dh1,267 per square foot. These rates per square foot for apartments and villas are 26.2 percent and 12.3 percent lower, respectively, than late-2014 highs.
The highest average sales rate per square foot in the apartment market is in Downtown Dubai, which has a Dh2,021 average sales rate per square foot. In the villas category of the market, Palm Jumeirah had the highest average sales rate per square foot, at Dh2,910.
Average rents increased by 13.1 percent in the year leading up to March 2022, with average apartment and villa rents increasing by 11.7 percent and 22.5 percent, respectively. In March 2022, the average apartment and villa rents were Dh80,000 and Dh238,441, respectively.
According to CBRE, the highest average annual apartment and villa rates in the rental market were found in Palm Jumeirah, where asking rents were Dh197,482, and Al Barari, where asking rents were Dh801,940.
Source: Property News AE
