According To CBRE, Residential Rentals in Dubai Are Rising At the fast Rate since Late 2014
According to analysts, the total volume of transactions in Dubai’s residential market reached a 13-year high in May as investors. High-net-worth people and entrepreneurs intend to relocate their businesses to the city. As per CBRE’s newest research, overall transaction volumes in Dubai’s residential market increased by 33% to 5,542 in May 2022. With total transaction volumes for the year to far to May reaching 30,903, the highest total since 2009.
Off-plan sales soared by 55.4% in May, according to the real estate consultant. While secondary market sales jumped by 18 percent. According to the CBRE, typical property rates climbed by 10.9 percent in the year ending in May 2022. Real estate consultant said, typical apartment prices and villa rates had risen by 9.6% and 19.8%, respectively, this year.
“As of May, the average apartment price in Dubai was Dh1,102 per square foot. While the average villa price was Dh1,307 per square foot. In comparison to late-2014 highs, these rates per square foot are 25.9% and 9.5 percent lower. Respectively, for apartments and villas, according to CBRE’s Dubai residential market snapshot issued on Tuesday.
According to Taimur Khan, head of research at CBRE in Dubai, transaction activity in residential market has remained robust. With total transaction volumes hitting 30,903 in the year to May 2022, the highest number since 2009.
“Price growth has also remained strong, despite a little decrease in the rate of rise from a month before. When average sales prices increased by 10.9 percent in the 12 months to May 2022,” Khan added.
Most Preferred Destinations
As per CBRE research, Downtown Dubai apartment sector, had the highest average sales rate per square foot at Dh2,045. In addition, remained the most popular destination for purchasers. Palm Jumeirah maintained its lead in the villa sector, with the highest average sales rate per square foot of Dh3,207.
Since the beginning of the year, month-on-month price increase for Dubai’s villas and townhouses has moderated. While apartment prices have remained nearly flat, according to another property consultant, ValuStrat. Villas had 33.4 percent year-over-year price rise, while yearly capital gains for citywide flats averaged 8.2% last month.
According to Ata Shobeiry, from Zoom Property, property market will continue to develop at a sustainable rate in 2022. With 30,903 sales transactions in the year to May due to increased investor demand.
“Despite the likelihood of a worldwide recession, the large growth of roughly 11% and 19% in pricing and rent, respectively, demonstrates that the market will provide high numbers in 2022,” Shobeiry told Khaleej Times on Tuesday.
According to the latest Henley Global Citizens report, 4,000 millionaires will migrate to the UAE this year because of the successful hosting of Expo 2020 Dubai and handling of the Covid-19 pandemic, which boosted the trust and confidence of high net worth individuals, foreign investors, and entrepreneurs, who injected billions of dirhams into the Dubai real estate sector.
Dubai is the new real estate capital of the globe, according to Imran Farooq, Cthe EO of Samana Developers, and the city is also growing as a new financial centre.
According to recent statistics, Dubai recruited a record 4000 new billionaires between February and May 2022, the biggest number of new rich citizens in the world in a five-month period.
“The crisis between Russia and Ukraine has sparked a fresh migratory surge. However, the United Arab Emirates, particularly Dubai, is not reliant on such wars since it has well-established commercial and trading infrastructures. “Even before the Russia-Ukraine war, the UAE maintained its status as the Middle East’s financial powerhouse,” he added. The UAE’s cheap tax system, the world’s quickest vaccination rates, and Dubai’s accomplishment in staging the World Expo during the toughest times of Covid-19, he added, are the primary attractions for international investors and families.
“At Samana Developers, we’re seeing an increase in new purchasers from China, Europe, Africa, and Commonwealth of Independent States (CIS) citizens, in addition to typical buyers from India, Pakistan, and the United Kingdom.” “Dubai’s increased attraction to overseas investors is reflected in the spike in new investors,” Farooq told Khaleej Times on Tuesday.
Rents Picking Up
Residential rentals climbed at the quickest rate since late 2014, according to CBRE’s Dubai residential market snapshot, with average rents growing by 19.1 percent in the 12 months to May 2022, with average apartment and villa rents jumping by 18.3 percent and 24.3 percent, respectively. The average apartment and villa rents in May 2022 were Dh83,485 and Dh249,677 per year, respectively.
According to the CBRE research, “the highest average annual apartment and villa rentals were discovered in Palm Jumeirah, where asking rates on average were Dh213,761,” and “the highest average annual apartment and villa rents were found in Al Barari, where asking rents on average were Dh874,171.”
“The pace of rent rise has continued to accelerate on a year-over-year basis, with average rents increasing by 19.1 percent in the year to May 2022, up from 16.2 percent a month earlier, the quickest rate of growth since October 2014,” Khan added.