Dubai has seen "record levels" of residential spaces in 2023

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According to a report by CBRE, Dubai has seen “record levels” in residential spaces, with transaction volume reaching 8,515 in February 2023. This showed 43 percent .That's an 8 percent increase from a year earlier, the highest in February, the report said. “Off-plan market sales increased by 78.1 percent with an 18.8 percent increase in secondary market sales to account for this growth

 

.In the year to February 2023, 17,741 residential transactions were recorded, the most recorded in the first two months of the year. Average apartment prices rose by 11.2 percent, while average villa prices grew by 13 percent.6 percent. In February 2023, the average apartment price in Dubai reached 1,211 dirhams per square foot, while prices for villas averaged 1,432 dirhams per square foot, the report noted. These average rates are still below the highs seen in late 2014, with 18 apartments and villas remaining.At 6 percent and 0.9 percent below this peak, respectively, most communities have already surpassed 2014 figures, the report said.

 

Palm Jumeirah recorded the highest rental rates for both apartments and villas, with average annual rents reaching AED 260,467 and AED1,017,614 respectively by February 2023, the report said.“We have seen rental rates grow by an average of 27.7 per cent in the year to February 2023. As a result, we've seen tenants more likely to renew their existing leases.

 

Based on Ejari statistics, the number of new registrations has decreased by 13 year-on-year to February 2023. From 0 per cent, the number of renewals has grown by 30.7 per cent,” said Taimur Khan, head of research, MENA at CBRE in Dubai. As Khan said, the report noted that Dubai's rental market saw a significant increase of 27.7 percent in average rents over the previous year, with a slightly higher increase of 27 apartments.9 percent compared to Villa at 26.3. percent.

Source : Joycelyn Marigold - Africa Home Building News