Dubai property prices jump 14.5% in April on back of off-plan market momentum
▶ A record 36,946 residential property deals were completed in the first four months of the year, CBRE says
Property prices in Dubai increased on an average by 14.5 per cent annually in April as sales of residential units continued to rise, driven by the off-plan market.
Average apartment prices rose by 14.5 per cent to Dh1,256 ($342) per square foot and average villa prices by 14.9 per cent to Dh1,484 per square foot in the year to April, property consultancy CBRE said in its latest Dubai Residential Market Snapshot report.
Sales prices also rose on a monthly basis, with apartments up 1.8 per cent and villa prices growing 2 per cent, it said.
While average apartment sales prices across the emirate are still 15.6 per cent below the record level posted in late 2014, several neighbourhoods have already crossed that mark.
Average villa sales prices, meanwhile, are now 2.7 per cent above their 2014 peak, the study showed.
Jumeirah remains the most expensive area to buy apartments, with the price per square foot at Dh2,367, the report said. This is, however, down 3.1 per cent from March.
Palm Jumeirah registered the highest square-foot sales price for villas at Dh4,635, which is up 4 per cent on a monthly basis.
Downtown Dubai, Palm Jumeirah, Dubai Hills Estate and The Old Town made up the five most expensive areas for apartments, while Jumeirah, Emirates Hills, District One and Jumeirah Islands were the highest for villas, CBRE said.
Property transactions in April stood at 7,615, which is a 16.2 per cent increase from the period a year ago. That brought this year’s total to 36,946, a 43.2 per cent rise compared with the same month in 2022 – a record for the first four months of any year so far, CBRE said.
The growth was underpinned by activity in the off-plan market, which posted a 42.5 per cent growth in sales. This offset weakness in the secondary market, where sales declined by 2.4 per cent.
“Activity levels in Dubai’s residential market remain steadfast,” Taimur Khan, CBRE’s head of research for Mena, said.
“On a monthly basis, a deceleration in activity levels has been witnessed following the record figure registered in March 2023. Despite this – and on the back of this elevated demand – average residential prices in Dubai continue to register significant increases.”
Dubai’s property market made a strong recovery from the coronavirus pandemic last year as the emirate’s economy rebounded on higher oil prices and government policies, including changes to visa rules to attract more investment.
Last year, the value of property deals in the market reached a new high of Dh528 billion, up 76.5 per cent annually, while the number of transactions rose by 44.7 per cent to 122,658.
The property sector’s “exceptional performance” will help Dubai to achieve its vision to be “one of the world’s top three cities”, Crown Prince Sheikh Hamdan bin Mohammed said in January.
“The results also support the goal of the Dubai Economic Agenda D33 … to double the size of Dubai’s economy by 2033. The sector is a pillar of Dubai’s strategy for sustainable development and a vital driver of its 2040 Urban Master Plan.”
Dubai remains one of the world’s most attractive investment destinations because of its stable economy, strong financial fundamentals and ability to find opportunities for growth, Sheikh Hamdan said.
In the rental market, average rents this year until April jumped by more than a quarter, as average apartment and villa rents surged by 25.7 per cent and 26.1 per cent, respectively.
The average annual apartment and villa rents in the emirate stood at Dh102,675 and Dh308,616, respectively, in April. Palm Jumeirah reported the highest average annual apartment rents at Dh263,762.
Al Barari reported peak average rents at nearly Dh1.008 million, CBRE said.
Rents have been rising due to an influx of high-net-worth people into the city, as well as the introduction of new visa programmes that encourage residents to stay longer or move from abroad.
“We have started to see a slight moderation [in the rental market], where the growth rate has tapered off for the third consecutive month,” Mr Khan said.
Downtown Dubai, Palm Jumeirah, Dubai Hills Estate and The Old Town top the list of expensive areas for apartments