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Residential transactions in Dubai to hit new high in 2022, report says

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According to leading real estate service provider CB Richard Ellis, the total number of transactions in Dubai will reach 8,662 in December 2022, a 63% increase from the previous year, mainly driven by a 92.5% increase in off-the-plan sales and a 35.4% increase in second-hand companies.

For the full year, residential transactions totaled a record 90,881 in 2022, eclipsing the previous record high of 81,182 set in 2009, it said.

According to CBRE, the average home price rose 9.5 percent in the year to December, with apartment prices up 9 percent and the average house price up 12.8 percent over the same period.

As of December 2022, average apartment prices in Dubai reached AED 1,168 per sq ft and villas at AED 1,385 per sq ft.

However, CBRE said in its report that these average prices have yet to surpass the all-time highs reached in 2014, with the average price of apartments and houses 21.5% and 4.2% below this peak.

In the apartment market, Jumeirah had the highest sales rate per square foot at AED 2,324, while in the villa market, Palm Jumeirah had the highest sales rate per square foot at AED 3,921.

Average rents rose 26.9 per cent in the year to December. Average rents for apartments and houses rose by 27.1 per cent and 24.9 per cent, respectively, during the period. As of December, the average annual apartment rent was AED 95,168 and the average villa rent was AED 282,150.

It added that Palm Jumeirah had the highest average annual rent for apartments and villas, with average annual asking rents reaching Dh248,452 and Dh1,016,956 respectively.

Head of Research (Mena) Taimur Khan said: “Dubai’s residential market has broken multiple records during 2022. The number of residential transactions for the year reached 90,881, a new record and almost 10,000 more than the 2009 high.”

“Residential rent growth is also at historical levels, with apartment and villa rents increasing by 27.1% and 24.9% respectively in 2022. Due to the lack of villa inventory available for rent and the growing level of demand for such inventory, villa rents are now at 45.3% Percent higher than in 2019, the average rent for villas was AED 282,150, another record high. During the same period, the average rent for apartments rose by 17.2% to AED 95,168,” he noted.

While the figures are likely to be good news for landlords, who have seen nearly six years of weak rents by 2022, rapid growth will continue to weigh on demand, with the total number of new registrations in Ejari down by 7% by 2022, Khan said. %.

Overall, Ejari transactions totaled 540,758, up 10.8 percent year-on-year, he added.

Regarding the future outlook, Khan said: “Over the coming year, we expect the average growth rate of prices and rents to remain positive, however, we expect the growth rates to moderate and in certain emerging communities with strong supply pipelines. ,decline.”-TradeArabia News Service

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