Dubai celebrates best year for residential property sales since 2009
Dubai’s booming residential property market marked its best year ever in terms of overall sales, with the total number of transactions reaching 90,881, eclipsing the previous benchmark set in 2009 by 9,699 sales.
The impressive performance, revealed by analyst CBRE in its latest Dubai Residential Market Snapshot report, highlighted the unprecedented strength of Dubai’s property sector, and its popularity among international investors.
According to CBRE, average property prices rose by 9.5% in the year to December 2022, with average apartment prices rising by 9.0% and average villa prices by 12.8% over the same period. As of December, prices reached US$377 per square foot.
The total volume of residential property transactions in Dubai reached 8,662 in December, up 63% from the previous year. The number of off-plan properties sold during the month was up a remarkable 92.5% year on year (YoY), while secondary sales rose 35.4% YoY.
Jumeirah hottest market for sales
In terms of the city’s hottest markets for sales, Jumeirah registered the highest sales rate per square foot for apartments at US$632, while in the villa category, Palm Jumeirah led the market with this figure reaching US$1,067.
Meanwhile, CBRE revealed that average residential rental rates increased by 26.9% YoY in 2022, with apartment and villa rents increasing by 27.1% and 24.9% respectively.
Palm Jumeirah recorded the highest average annual apartment and villa rents, with asking rents reaching an average of AED 248,452 and AED 1,016,956 per annum, respectively.
Foreign investors eye opportunities
International investors rushed to capitalise on the market’s impressive growth trajectory in 2022, with Indians accounting for the largest proportion of sales to foreigners, followed by British nationals, Russians, Italians and Canadians, according to Betterhomes data cited by Reuters.
The level of demand seen in 2022 is expected to continue in 2023, according to Betterhomes, however prices are forecast to stabilise, with the YoY increase expected to slide to 5% compared to the 9.5% registered last year.