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Rental rates in Dubai continue to show almost record growth and may begin to decline after an increase in supply in the near future, real estate market experts predict.
According to CBRE, the average rent in Dubai increased year-on-year to 24.8% in August 2022, compared with 23.7% a month earlier. As of August 2022, the average annual rent for apartments and villas reached 87,774 dirhams and 263,034 dirhams.
The highest annual rents for apartments and villas were respectively recorded in Palm Jumeirah, where the average rent reached 222,870 dirhams, and in Al Barari, where the average rent reached 935,046 dirhams.
CBRE data shows that the total volume of transactions in the Dubai residential real estate market in August was 9,257, which is 70.5% more than the previous year. During the same period, unscheduled sales and sales in the secondary market increased by 68.5% and 72.4%, respectively. In the year to August 2022, the total volume of transactions registered during this period was 55,108, which is the highest level recorded since 2009.
Average prices for the 12 months to August 2022 increased by 8.8%, while average prices for apartments increased by 7.7%, and average prices for villas - by 15.8%.
The average prices for apartments in Dubai reached 1,120 dirhams per square meter, and the average prices for villas reached 1,339 dirhams per square meter. According to the CBRE report, these average rates are still below the peak of 2014, when prices for apartments and villas are respectively 24.7% and 7.3% below this peak.
