In January, rentals and property prices in Dubai increased by more than 10%. The most demanded districts are Downtown Dubai, Palm Jumeirah, and Al Barari.
According to CBRE’s January 2022 Dubai residential market snapshot, overall property prices grew by 10.2 percent. Dubai’s property market maintained its robust increasing momentum in January, with residential prices and rents rising at the quickest rate since early 2015.
Last month, transaction volumes in the residential market increased by 80.2 percent year over year. With off-plan and secondary markets, sales increased by 187.5 percent and 32.5 percent, respectively.
Last month, the real estate consultancy saw an 8.5 percent increase in average apartment prices. In addition, a 21.8 % increase in average villa prices. The price of an apartment remained stable at DH 1085 per square foot, while the price of a villa increased to DH 1250 per sq. ft.
“For apartments and villas, these rates per sq. ft. are 27.1 % and 13.5 percent below the high, respectively.” If we compare it to the late-2014 highs, it’s a tie,” according to CBRE.
According to the real estate consultant, the average sales rate per sq. ft. for flats in Downtown Dubai was DH 1958. In the villa segment, Palm Jumeirah had the largest average sales rate per sq. ft. at DH 2699 per square foot.
Rents are increasing
Average rentals climbed by 10.1 percent in the 12 months leading up to January 2022, with apartment and villa rents growing by 8.3 % and 22.8 %. In January, the average annual rents for apartments and villas were DH 76347 and Dh 230275, respectively.
The most popular region for apartments remained in Downtown Dubai, with average asking rents rising to Dh 150723 per year. While Al Barari appeared as the most demanded location for villas, with an average demand rate of Dh 798374 per year.
Getting close to the top
“Dubai real estate has begun the year on a strong note, with a 33.4 percent surge in home prices in January. This suggests that the momentum that began in 2021 will continue in 2022,” Shobeiry told Khaleej Times on Wednesday.
“The villa category will maintain its leadership. The apartment market, on the other hand, will grow more stable. Expat-friendly policies and visa modifications, in my opinion. And the transition from Expo 2020 to District 2020 will be crucial factors in driving the upward trend,” he said.
The cycle of the stock market
“Our new annual growth prediction for the residential share price in Dubai in 2022, based on our valuation-based inflation figures, VPI, is between 5% and 10% when compared to 2021,” says the report. Villa prices have already risen by up to 30%, although are still well below their 2014 heights.
Apartment prices have risen by single digits, but they are still deemed inexpensive, according to Tuaima, who spoke to Khaleej Times on Wednesday.
Also Read: What If The Buyer Is Unable To Pay All Installments Of The Property Purchased In Dubai?
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