Residential rents in Dubai have risen at their fastest annual rate since 2014 this year, with price increases in premium areas such as the Palm Jumeirah touching 40%.

The new Dubai Residential Market Snapshot by CBRE showed soaring rent increases in Palm Jumeirah, reaching 39.8% year-on-year, while Downtown Dubai was up by 38.4% and Dubai Marina by 35.7%.

The average rent across all areas increased by 23.7%, broken down into apartments rising by 23.5% and villas by 24.8%, with the average price reaching AED 83,713 and AED 260,949 respectively.

Sales transaction volumes also grew by 58% YoY, with off-plan sales up by 59% and secondary market sales up by 57.1%, reaching 45,793, the highest total recorded since 2009. 

Average apartment sales prices increased by 8.7% and average villa prices by 17.8%, but prices are still 25.1% and 7.6% below the 2014 peak, for apartments and villas respectively, the report revealed. 

Jumeirah recorded the highest average sales rate per square foot for apartments at AED 2,082 while villas in Palm Jumeirah recorded the highest average sales per square foot at AED 3,521.

Taimur Khan, CBRE’s head of research for MENA, said the usually subdued summer period in Dubai’s residential market was seeing buoyant activity.

The CBRE report showed month-on-month grown in sales prices in many areas, with the Green Community and Dubailand seeing the highest growth in apartment prices to July, at 4.9%. Villa prices grew the fastest MoM in the Palm Jumeirah at 4.6%.

Rents grew fastest MoM for apartments in Arjan at 4.7%, and for Jumeirah Islands at Emirates Hills at 5%.

(Writing by Imogen Lillywhite; editing by Daniel Luiz)