Dubai property boom: Dubai rents rise by 27.3%
As Dubai’s real estate market flourishes, the average price for property purchase has risen 9.2%
According to CBRE, the average price of Dubai property rental went up by more 27% due to a sharp rise in Dubai real estate demand. As renters become less inclined to move due to rising prices, the number of renewals has increased and the number of new contracts has fallen. CBRE’s monthly Dubai Residential Market Snapshot noted that the average rents have increased by 27.3% over the past year.
The average apartment rental price went up by 27.5%, while villa rentals rose 25.7%. The average rent for an apartment or villa in the UAE was AED91,795 per year, and AED273,740 per year, respectively, as of October.
The highest average annual rents for an apartment or villa were seen in Palm Jumeirah where rents averaged AED 242,250 and Al Barari where rents averaged AED 956,174.
Dubai Real Estate Sales
However for the sales market, the average price of a villa rose 9.2% in the year to Oct. Villas did slightly better, with an average rise of 13%, compared to 8.5% for apartments.
Average apartment prices in Dubai were AED 1,149/square foot and average villa prices AED 1,359/square foot.
8.269 transactions were registered in the sales market in October 2022, a 72.5% increase over the previous year. In the year to October 2022, 71,412 transactions total were recorded. This is a significant increase from the 29,394 transactions in 2019. The expected total number of transactions in 2022 will comfortably exceed the 2009 total.
Jumeirah was the most expensive place to live in an apartment, at an average of AED2,226 per sq. ft. Palm Jumeirah, on the other hand, is the most expensive area for villas in Dubai, at an average of AED 3,704/square foot.
Average rents increased by 27.3% in the twelve months to October 2022. Apartment rents increased 27.5%, while villa rents increased 25.7%.
The average rent for an apartment or villa in the UAE was AED 91.795 per year, and AED 273,740 per year, respectively, as of October 2022.
The highest average annual rents for an apartment or villa were seen in Palm Jumeirah where rents averaged AED 242,250 and Al Barari where rents averaged AED 956,174.
