House prices in Dubai have surged by up to 34 percent and rents by 46 percent in some areas over the past year as the real estate market booms with high buyer demand, new research finds.
Villas and apartments in popular communities like Dubai Hills and Palm Jumeirah are commanding substantial premiums, according to Chestertons MENA’s data for Q3 2023.
In Dubai Hills, villas saw the biggest price surge, averaging AED2,409 per sq. ft. – a 34 percent jump from the same period last year. Apartment prices in the area were up 25 percent to AED1,882 per sq. ft.
Apartments in Palm Jumeirah, however, rose 17 percent to AED2,632 per sq. ft., while prices for other locations like Downtown Dubai and Dubai Marina also registered double-digit growth.
Average sales prices for Dubai residential property Q3
| AREA | PROPERTY TYPE | Q3 2023 (AED/sq. ft.) | Y-o-Y % DIFFERENCE Q3 2023 vs Q3 2022 | Q-o-Q % DIFFERENCE Q3 2023 vs Q3 2022 |
|---|---|---|---|---|
| Dubai Hills | Apartment | 1,882.00 | Up by 25% | Up by 6% |
| Dubai Hills | Villa | 2,409.00 | Up by 34% | Up by 9% |
| Downtown | Apartment | 2,236.00 | Up by 14% | Up by 3% |
| Palm Jumeirah | Apartment | 2,632.00 | Up by 17% | Up by 9% |
| Palm Jumeirah | Villa | 5,094.00 | Down by 2% | Down by 2% |
| MBR City | Apartment | 1,760.00 | Up by 25% | Up by 4% |
| MBR City | Villa | 1,874.00 | Down by 19% | Up by 10% |
| Dubai Marina | Apartment | 1,562.00 | Up by 15% | Up by 2% |
Dubai rents surging rapidly
Sustained price growth has also flowed through to rental valuations. Chestertons MENA’s research found annual hikes of up to 46 percent for residential lease rates across the emirate’s premier communities.
A three-bed villa in Dubai Hills now fetches an average AED279,000 in rent per year, almost half more than 2022 levels. Meanwhile, two-bed apartments in prime areas like Palm Jumeirah and Downtown Dubai are leasing for up to 27 percent higher yearly rents.
Average rent prices in Dubai residential real estate market
| AREA | PROPERTY TYPE | AVERAGE RENT Q3 2023 (AED) | AVERAGE RENT Q3 2022 (AED) | Y-o-Y % DIFFERENCE Q3 2023 vs Q3 2022 |
|---|---|---|---|---|
| Dubai Hills | 2-bed apartment | 123,000 | 96,000 | Up 28 % |
| Dubai Hills | 3-bed villa | 279,000 | 191,000 | Up 46 % |
| Downtown | 2-bed apartment | 157,000 | 138,000 | Up 14 % |
| Palm Jumeirah | 2-bed apartment | 179,000 | 152,000 | Up 18 % |
| Palm Jumeirah | 4-bed villa | 660,000 | 497,000 | Up 33 % |
| MBR City | 2-bed apartment | 120,000 | 93,000 | Up 29 % |
| MBR City | 4-bed villa | 861,000 | 606,000 | Up 42 % |
| Dubai Marina | 2-bed apartment | 132,000 | 109,000 | Up 21 % |
The surging demand and prices reflect the emirate’s growing attractiveness as a residential market.
“Dubai’s real estate sector continues to flourish, with residential and commercial property in significant demand,” said Nicky Witty, CEO of Chestertons MENA.
“Dubai Hills has seen the strongest growth in both apartment and villa prices, with impressive year-on-year increases also seen a Mohamed bin Rashed City apartments – a reflection of the popularity and evolution of these communities as they mature.”
All metrics point to a thriving real estate sector as global firms and expat workforce continue flowing into the emirate.
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