Dubai’s residential properties posted a double-digit growth in both sales prices and rents on the back of strong demand, according to the latest data.

In the year to March 2024, average prices surged by 20.7%, with villa rates surging by 22.1% and flats posting a 20.4% growth, CBRE Middle East reported on Wednesday.

The cost of apartments in Dubai stood at AED 1,486 per square foot as of March 2024, while villas cost around AED 1,776 per square foot.

Overall, the headline average sales rates are still marginally below the 2014 highs by 0.1%, although several premium neighbourhoods have surpassed their 2014 figures.

Rents across Dubai went up by an average of 21.2% in March 2024, surpassing the 20.4% increase registered a month earlier.

Apartments led the increase, registering an average growth of 22.1%, while villas posted a 14.5% increase in rates.

From January to March, total transaction volumes in Dubai reached 35,310, the highest total ever recorded in the first quarter of the year, marking an increase of 20.5% from the year prior. Off-plan deals went up by 23.9%, while secondary market deals rose by 15.2%.

More residents have secured tenancy contracts as well, with the total number of rental registrations rising by 5.8% to 159,941 in the year to March 2024, data from the Dubai Land Department showed.

(Writing by Cleofe Maceda; editing by Seban Scaria)