According To CBRE, Average Villa Rents Will Increase By 25.4% And Average Apartment Rents Will Rise By 27.6% In The Year To November 2022.
Dubai real estate industry extended its golden run throughout the year due to high demand from investors and end users. Because of significant business and visa changes, and the Dubai rental market had strong double-digit growth this year. “As of November 2022, the average yearly rent for apartments was Dh93359. While for villas, it was Dh278546. According to CBRE’s Dubai Residential Market Snapshot – December 2022, Palm Jumeirah had the highest average annual apartment and villa rents. With average asking rents of Dh243219 and Dh982047, respectively.
A Record Year In 2022
According to Taimur Khan, head of research for Mena at CBRE in Dubai, the number of transactions in Dubai’s residential market has hit a new high for the year as of November 2022. Totaling 81,919, breaking the previous record of 81,182 set for the entire year of 2009.
“This high level of activity has continued to sustain rises in average prices, which have increased by 9.0% and 12.7% for apartments and villas, respectively, in the year leading up to November 2022. However, we are observing a reduction in the rate of average price rise, notably in the villa market, and we anticipate that this trend will be followed in the near future by the apartment market, according to a statement given by Khan to Khaleej Times on Tuesday.
He predicted that several of the top markets would continue to experience rapid development. He said that typical rents in Dubai rental market are rising at rates that are very close to records. “As a result, renters are more willing to extend their current leases. The number of new contracts registered year over year in the year to date through November 2022 decreased by 5.8%. While renewals grew by 33.8%, according to Ejari statistics, which illustrates this.
Traders Pour Into Dubai
According to Ata Shobeiry, CEO of Zoom Property, 2022 proved to be a fantastic year for the Dubai real estate market. Because to the influx of investors attracted by the government’s successful Covid-19 pandemic plan.
“As more individuals choose Dubai as their second home. There is an increase in demand for rental apartments. Rent costs have increased significantly because of this. Although it is undoubtedly a good indication for landlords, renters are reluctant to switch residences. Because of an increase in rent, according to Shobeiry, who spoke to Khaleej Times.
The average home rent “is projected to climb further as Dubai is all ready to welcome more guests in 2023,” he said.
According to him, Dubai’s well-liked neighborhoods continue to draw renters because they fuel the rental market. While Business Bay, Downtown Dubai, and Al Barsha continue to be the top neighborhoods for tenants. He claimed that Palm Jumeriah has had the greatest increase in the national average rent.
According to Ayman Youssef, vice-president of Coldwell Banker UAE, the rental market graph has seen a significant uptick this year. As rentals have risen across all property types. “The growth yield grew from 5.7% last year to 6.5% this year. Dubai rental market is still holding up well and shows no indications of slowing down in the near future. As of now, the market, particularly in premium districts, has been able to absorb the extra supply of units with a strong occupancy rate.
November Was a Banner Month
According to CBRE statistics, Dubai’s overall transaction volumes in November were 10,505, up 60.8% from the same month the previous year. Off-plan transactions increased by 63.3%, while secondary market deals increased by 58.4 percent. All of which contributed to this robust expansion.
As per CBRE’s Dubai Residential Market Overview December 2022, a total of 81,919 residential transactions were reported in the year to date through November 2022, breaking the previous year’s record highs.”
The average price rose by 9.5% during the course of a year, ending in November 2022. Prices for apartments and villas rose on average by 9% and 12.7%, respectively, over this time. The average price of an apartment in Dubai was Dh1161 per square foot. While the average price of a villa was Dh1374. According to CBRE, “These average rates for apartments and villas remain below the highs reached in 2014 by 22% and 4.9%, respectively.
According to a CBRE analysis, Palm Jumeirah had the highest sales rate per square foot in the market for villas. While Jumeirah had the highest sales rate per square foot in the market for apartments, at Dh2,310.
Key Takeaways for Dubai Real Estate
9.5% Average prices will rise in the year leading up to November 2022
27.3% Average rents will rise in the year leading up to November 2022
1. Apartment Portion
Dh1,161 Average cost per square foot of an apartment
Dh2310 Jumeirah has the highest average apartment price per square foot in Dubai
Dh93k Dubai’s typical yearly apartment rent
Dh243k Palm Jumeirah has the highest average yearly rent in Dubai
2. Villa Section
Dh1374 Dubai’s typical villa price per square foot
Dh3802 Palm Jumeirah has the highest average home price per square foot in Dubai
Dh297k Dubai’s typical yearly villa rent
Dh982k Palm Jumeirah has the highest yearly average villa rent in Dubai