Dubai’s real estate market experienced robust growth, with sale prices surging by more than 19 percent and rents rising over 21 percent in the past year, according to CBRE analysis. August 2023 marked the second-highest monthly transaction volume ever recorded, with off-plan sales soaring by 58.7 percent. In contrast, secondary market sales declined by 10.2 percent. Average apartment prices increased by 20 percent, reaching AED1,344 per square foot, while villa prices rose by 17.3 percent to AED1,571 per square foot. Rental rates also climbed, with the highest rates in Palm Jumeirah. The market continues to exhibit substantial growth.
Dubai’s real estate sector has experienced a significant surge in sale prices, with an increase of more than 19 percent, and rents have risen by over 21 percent in the past year. In August 2023, the total number of transactions in Dubai’s residential market reached 11,328, marking the second-highest monthly figure ever recorded. This represents a 22 percent increase compared to the previous year. During this period, off-plan sales saw a substantial growth of 58.7 percent, while secondary market sales declined by 10.2 percent.
From the beginning of the year to August 2023, a total of 79,605 transactions were registered, marking a record high for this time frame. Price growth in the sales market continues to accelerate, with average prices increasing by 19.6 percent in the 12 months leading up to August 2023, up from 18.1 percent a month earlier.
During this timeframe, the average prices of apartments increased by 20 percent, while the average prices of villas saw a rise of 17.3 percent. As of August 2023, the average price per square foot for apartments reached AED1,344, while for villas, it reached AED1,571. Apartment sales rates, on average, are 9.6 percent lower than their peak in 2014, although several communities have already exceeded their 2014 peak benchmarks. In contrast, average villa sales rates are now 8.7 percent higher than their 2014 levels.
In the apartment segment, Downtown Dubai recorded the highest sales rate per square foot at AED2,460, while in the villa segment, Palm Jumeirah had the highest sales rate per square foot at AED4,915. Additionally, there is a slight slowdown in the rate of growth in the rental market.
The average rental prices in Dubai increased by 21.7 percent in the period leading up to August 2023, which was slightly lower than the 22 percent increase observed in July 2023. During this time, the average rents for apartments went up by 21.5 percent, while average villa rents saw a 22.6 percent increase. As of August 2023, the average annual rents for apartments and villas were AED106,674 ($29,000) and AED322,573 ($88,000), respectively.
Palm Jumeirah registered the highest yearly apartment and villa asking rents, with average rents reaching AED257,173 ($70,000) and in Al Barari, where average rents reached AED1,108,164 ($302,000). Taimur Khan, Head of Research – MENA at CBRE in Dubai, noted that the residential market in Dubai continues to show significant growth.
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