Dubai Real Estate at the highest growth rate since 2014

Palm Jumeirah and Downtown Dubai have been marked as the best-performing areas in villas and apartment sales.

Palm Jumeirah is the area with the highest apartment rent at AED 58,335 yearly.

The real estate market in Dubai saw a rise of 18.8 percent in June 2023, when compared to the same period last year, as the number of transactions reached 9,876.

Off-Plan transactions have risen by 44.9 percent, while secondary market transactions declined slightly by 0.5 percent.

The total number of residential transactions recorded till June 2023 was 57,737, which is the highest number registered over the first two quarters of the year.

An expert said: “The upward trend of the prices has been seen in Dubai’s residential market over the past few months till June 2023; average prices grew by 16.9 percent, with the average villa and apartment prices rising by 15.1 and 17.2 percent, respectively.”

“This rate of growth is supported by greater activity levels, where mid-way through the year, the total number of transactions has hit the greatest level on record with 57,737 transactions.”

He added: “When we look at the average price of villa and apartment, we see growth by 96.8% in the villa and 97.1% in the apartment of the communities when compared to the prices a year ago. The main residential areas are seeing a rise in demand and great price growth.”

Dubai residential real estate prices

The average prices saw a great deal of growth since 2014, increasing by 16.9% in the year through June 2023, up from the 15.9% growth registered during the earlier month.

Average villa prices grew by 15.1%, whereas average apartment prices grew by 17.2% in this period.

The average apartment prices in Dubai stay below the 2014 level, averaging AED 1,294 per sq. ft.

Many communities have already surpassed their peak levels; average villa prices stand at AED 1,525 per sq. ft., exceeding their 2014 figures by 5.5%.

Downtown Dubai is one of the best-performing areas in apartment sales, with prices reaching AED 2,440 per sq. ft.

Palm Jumeirah has the highest villa sales rate, with prices at AED 4,845 per sq. ft.

On the rental front, average rents had an increase of 22.8 % in the year till June 2023, which is a little lower than the previous month’s 24.2 % rise.

Average villa and apartment rents grew by 23.1% and 22.7%, respectively.

Palm Jumeirah emerged as the location with the highest average annual apartment rents, reaching AED 58,335, whereas Al Barari topped the list for villas, with an average annual rent of AED 1,042,931.