June was yet another busy month for Dubai’s residential real estate market which witnessed a notable increase of 18.8 percent compared to the same period the previous year. Transaction volumes for the month reached an impressive 9,876. Off-plan transactions in particular experienced even more impressive growth of 44.9 percent. Overall, there were a total of 57,737 residential transactions recorded this year marking the highest ever figure for this period.
Average prices on the other hand grew by an impressive 16.9 percent from the previous year. Looking at the figures in more detail apartment prices rose by 17.2 percent and villa prices by 15.1 percent. The strong rate of growth can be attributed to strong population growth, elevated activity levels and the resulting increased demand in prime residential areas. Certain popular Dubai communities have now surpassed their previous peak levels, with average villa prices reaching AED1,525 per square foot.
Not surprisingly Downtown Dubai emerged as the top-performing area in terms of apartment sales, with prices reaching AED2,440 per square foot. Palm Jumeirah claimed the highest villa sales rates, with prices reaching AED4,845 per square foot. Considering the everlasting popularity of this community this was not a surprising statistic.
In the rental market, average rents saw a significant increase of 22.8 percent in the year leading up to June 2023. However, much to the relief of would-be tenants, rental growth rates in several major areas are starting to moderate, leading to reduced asking rents in some communities. The average annual rent for apartments currently stands at AED104,685, while villas have an average annual rent of AED14,552. As expected Palm Jumeirah recorded the highest average annual apartment rent at AED58,335, whilst Al Barari topped the list for villas with an average annual rent of AED1,042,931.
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