Dubai – The total volume of transactions in Dubai’s residential market stood at 11,328 in August 2023. This is the second-highest monthly figure ever registered, up by 22.0% compared to the previous year. Over this period, off-plan sales increased by 58.7%, while secondary market sales dropped by 10.2%. In the year to date to August 20231, a total of 79,605 transactions were registered, the highest on record over this period.

In the sales market, price growth continues to accelerate. In the 12 months to August 20232, average prices rose by 19.6%, up from 18.1% a month earlier. Over this period, average apartment prices rose by 20.0%, and average villa prices rose by 17.3%. As at August 2023, average apartment prices reached AED 1,344 per square foot, and average villa prices reached AED 1,571  per square foot. Average apartment sales rates sit 9.6% below their 2014 comparable peak; although several communities have already topped their 2014 peak benchmarks. Average villa sales rates, on the other hand, now sit at 8.7% above their 2014 level.

In the apartment segment of the market, Downtown Dubai registered the highest sales rate per square foot at AED 2,460, whereas, in the villa segment of the market, Palm Jumeirah registered the highest sales rate per square foot at AED 4,915.

In the rental market, we continue to witness a slight moderation in the rate of growth. Average rents in Dubai rose by 21.7% in the year to August 2023, down marginally from 22.0% in July 2023. Over this period, average apartment rents increased by 21.5%, and average villa rents rose by 22.6%. In August 2023, the average apartment and villa rents stood at AED 106,674 and AED 322,573 per annum, respectively.

The highest yearly apartment and villa asking rents have been registered in Palm Jumeirah, with average rents reaching AED 257,173 and in Al Barari, with average rents reaching AED 1,108,164.

Taimur Khan, Head of Research – MENA at CBRE in Dubai, comments:

“Dubai’s residential market continues to register substantial levels of growth. In the year to date to August 2023, the total volume of transactions reached 79,605, the highest on record over this period, marking an increase of 41.7% from the previous year. These strong activity levels within the sales market are underpinning stronger price growth, where in August 2023, average prices registered a year-on-year increase of 19.6%, up from the 18.1% increase recorded in July 2023. That being said, this increase hides some softening of growth in the prime segment of the market, where we are still seeing the pace of price growth slowing within a number of core and prime residential areas.

Although demand remains steadfast, we are seeing that the rate of rental growth continues to moderate, making this the seventh consecutive month in which this has occurred. A total of 376,211 rental transactions were registered in the year to date to August 2023, marking an 8.7% increase compared to the year prior, and a 48.0% increase from the comparable 2019 period. This growth has been supported by a 28.0% growth in renewed registrations, while new rental contracts registered have dropped by approximately 12.0%. This significant decline in new rental registrations arises from the elevated costs that can be incurred when relocating or taking on new leases, which, as a result, has created substantial bifurcations between new and renewed rental rates.”

1 Refers to the time period between January 2023 and August 2023
2 Refers to the time period between August 2022 and August 2023

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2022 revenue). The company has approximately 115,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.