In response to a dramatic increase in demand for Dubai real estate, CBRE reports that the average price of rental properties in Dubai increased by more than 27%. The number of renewals has increased while the number of new contracts has decreased as renters become less likely to move due to rising costs. The average rent increased by 27.3% over the previous year, according to CBRE’s monthly Dubai Residential Market Snapshot.
While villa rentals increased by 25.7%, the average cost of renting an apartment increased by 27.5%. The average rent for an apartment or villa in the UAE was AED91,795 per year, and AED273,740 per year, respectively, as of October.
Property Sales in Dubai
However for the sales market, the average price of a villa rose 9.2% in the year to Oct. Villas did slightly better, with an average rise of 13%, compared to 8.5% for apartments.
Average apartment prices in Dubai were AED 1,149/square foot and average villa prices AED 1,359/square foot.
8.269 transactions were registered in the sales market in October 2022, a 72.5% increase over the previous year. In the year to October 2022, 71,412 transactions total were recorded. This is a significant increase from the 29,394 transactions in 2019. The expected total number of transactions in 2022 will comfortably exceed the 2009 total.
With an average price of AED2,226 per square foot, Jumeirah was the most expensive place to rent an apartment. In contrast, Palm Jumeirah commands the highest price per square foot for villas in Dubai, at AED 3,704 on average.
In the year ending in October 2022, average rents rose by 27.3%. While villa rents rose 25.7%, apartment rents rose 27.5%.
As of October 2022, the average annual rent in the UAE for an apartment or villa was AED 91.795 and AED 273,740, respectively.
The Palm Jumeirah neighborhood and Al Barari had the highest average annual rents for an apartment or villa, at AED 242,250 and AED 956,174, respectively.
