CBRE: Dubai sees record total of residential transactions in 2022
90,881 residential transactions registered of the year, beating the historic high of 81,181, which was set in 2009
Dubai saw a record total of 90,881 residential transactions registered over the course of 2022, exceeding the historic high of 81,182 which was set in 2009, a CBRE report has revealed.
CBRE said that the total volume of transactions in Dubai reached 8,662 in December 2022 – a growth of 63% from the previous year. This was supported by a 92.5% increase in off-plan sales and a 35.4% jump in secondary sales, it added.
Taimur Khan, Head of Research – MENA at CBRE in Dubai commented, “Dubai’s residential market saw a number of records being broken over the course of 2022. Residential transactions volumes beat the 2009 high by almost 10,000 transactions. Residential rental growth also reached historic levels, with apartment and villa rents increasing by 27.1% and 24.9%, in 2022, respectively. Due to the lack of available villa stock for rent and growing demand levels for such stock, villa rents are now 45.3% higher than in 2019, with average villa rents standing at US $77,000, once again the highest level on record. Over the same period, average apartment rents are 17.2% higher and stand at $26,000.”
The report pointed out that average property prices rose by 9.5% in the year to December 2022, while average apartment prices rose by 9.0%. Average villa prices increased by 12.8% over the same period. As of December 2022, Dubai’s average apartment prices reached $318 per sqft, and average villa prices reached $377 per sqft.
In late December 2022, the DLD unveiled its new strategic plan for 2023-26.
These average rates have not yet surpassed the record highs of 2014, with the average apartment and villa prices being 21.5% and 4.2% below this peak.
In the apartment segment of the market, Jumeirah has registered the highest sales rate per sqft at $632, whereas, in the villa segment of the market, Palm Jumeirah registered the highest sales rate per square foot at $1,067. In the year to December 2022, average rents increased by 26.9%. Over this period, average apartment and villa rents increased by 27.1% and 24.9%, respectively.
The Palm Jumeirah recorded the highest average annual apartment and villa rents, with asking rents reaching an average of $67,644 and $277,000 per annum, respectively.
“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%. Overall, the number of Ejari transactions totalled 540,758, an increase of 10.8% year-on-year,” said Khan.
In early January 2023, Realiste predicted that Dubai’s real estate boom would continue in 2023.
He concluded, “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.”
Also in early January 2023, Knight Frank said that the Burj Khalifa enjoyed a 16% increase in residential sales in 2022.
