Dubai’s residential rents slacken, but sales prices continue to grow

Dubai’s residential rents slacken, but sales prices continue to grow

While rent increases showed signs of moderation in May 2023 in Dubai’s residential real estate sector, sales prices continued to grow, surpassing average price levels during the last peak in 2014.

A report by real estate consultant CBRE shows that there were 10,934 residential real estate transactions in May 2023, up 76.6% since May 2022, increasing by 107.2% in the offplan sector and 52.7% in the secondary market.

The total volume of transactions in the year up to May 2023 reached 47,850, the highest level on record over this period, CBRE said.

Average prices overall were up 15.9% in the year up to May 2023, with average apartment prices increasing by 15.9% and average villa prices by 16% over the same period.

Average apartment sales rates per square foot are still 14.2% below the record highs of 2014, although many neighbourhoods have long surpassed their 2014 figures.

However, average villa sales rates are currently 5% above their 2014 peak, CBRE said

Jumeirah recorded the highest sales rate per square foot in the apartment segment of the market, at AED 2,410, while Palm Jumeirah recorded the highest sales rate per square foot in the villa segment of the market at AED 4,692.

Average rents in Dubai grew by