In 2022, a total of 90,881 real estate transactions were registered in Dubai, exceeding the historic record high in 2009 of 81,182 transactions, according to a CBRE report.
In December 2022 alone, over 8000 transactions were made, leading to a 63 percent in increase from the previous year.
Off-plan property sales witnessed an increase of 92.5 percent while secondary sales saw a 32.4 percent rise.
During the year until December 2022, the average property prices rose by 9.5 percent. Villas rose by 12.8 percent and apartment prices increased by 9 percent. The rates however, have not surpassed the record numbers of 2014, with the average apartment and villa prices being 21.5 percent and 4.2 percent below this peak.
Palm Jumeirah registered the highest sales rate of 2022 with per square foot priced at AED2,324 for the apartment segment and AED3,921 in the villa segment.
Palm Jumeirah has recorded the highest average annual rents, with asking rents reaching an average of AED 248,452 and AED 1,016,956 per year.
“Dubai’s residential market saw a number of records being broken over the course of 2022. Residential transactions volumes reached 90,881 for the year, a new record, beating the 2009 high by almost 10,000 transactions. Residential rental growth also reached historic levels, with apartment and villa rents increasing by 27.1 percent and 24.9 percent, in 2022, respectively,” said Taimur Khan, Head of Research – MENA at CBRE, Dubai.
“Due to the lack of available villa stock for rent and growing demand levels for such stock, villa rents are now 45.3 percent higher than in 2019, with average villa rents standing at AED282,150, once again the highest level on record. Over the same period, average apartment rents are 17.2 percent higher and stand at AED 95,168.”
“While these figures may be welcome news for landlords who had seen almost six years of softening rents until 2022, the rapid rate of growth will continue to impact demand, where in 2022 the total number of new Ejari registrations fell by 7.0 percent. Overall, the number of Ejari transactions totalled 540,758, an increase of 10.8 percent year-on-year,” he added.
“In the year ahead, we expect that both the average rates of price and rental growth will remain positive, however, we expect the rates to moderate and in certain more nascent communities with strong supply pipelines, to decline,” Khan concluded.
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