• APARTMENT PRICES: Downtown Dubai rose by 0.2 per cent month-on-month in March to Dh1,963 per square foot. Reuters
    APARTMENT PRICES: Downtown Dubai rose by 0.2 per cent month-on-month in March to Dh1,963 per square foot. Reuters
  • Jumeirah: Dh1,908 per square foot — up 2.7 per cent a month. The National
    Jumeirah: Dh1,908 per square foot — up 2.7 per cent a month. The National
  • The Palm Jumeirah: Dh1,789 per square foot — down 2.7 per cent a month. Antonie Robertson / The National
    The Palm Jumeirah: Dh1,789 per square foot — down 2.7 per cent a month. Antonie Robertson / The National
  • DIFC: Dh1,589 per square foot — up 0.1 per cent a month. Jeff Topping / The National
    DIFC: Dh1,589 per square foot — up 0.1 per cent a month. Jeff Topping / The National
  • Jumeirah Beach Residence: Dh1,508 per square foot — up 0.6 per cent a month. Photo: LuxuryProperty.com
    Jumeirah Beach Residence: Dh1,508 per square foot — up 0.6 per cent a month. Photo: LuxuryProperty.com
  • Mohammed bin Rashid City: Dh1,435 per square foot — down 1 per cent a month. Satish Kumar / The National
    Mohammed bin Rashid City: Dh1,435 per square foot — down 1 per cent a month. Satish Kumar / The National
  • Business Bay: Dh1,421 per square foot — up 0.4 per cent a month. Sarah Dea / The National
    Business Bay: Dh1,421 per square foot — up 0.4 per cent a month. Sarah Dea / The National
  • Dubai Hills: Dh1,415 per square foot — up 0.2 per cent a month. Photo: Emaar Malls Management
    Dubai Hills: Dh1,415 per square foot — up 0.2 per cent a month. Photo: Emaar Malls Management
  • Dubai Marina: Dh1,391 per square foot — up 0.3 per cent a month. Victor Besa / The National
    Dubai Marina: Dh1,391 per square foot — up 0.3 per cent a month. Victor Besa / The National
  • The Greens and The Views: Dh1,084 per square foot — up 1.7 per cent month. Sarah Dea / The National
    The Greens and The Views: Dh1,084 per square foot — up 1.7 per cent month. Sarah Dea / The National
  • Jumeirah Lakes Towers: Dh997 per square foot — no change. Antonie Robertson / The National
    Jumeirah Lakes Towers: Dh997 per square foot — no change. Antonie Robertson / The National
  • Damac Hills: Dh966 per square foot — up 1.1 per cent a month. Pawan Singh / The National
    Damac Hills: Dh966 per square foot — up 1.1 per cent a month. Pawan Singh / The National
  • Jumeirah Village Circle: Dh885 per square foot — up 1.6 per cent a month. Razan Alzayani / The National
    Jumeirah Village Circle: Dh885 per square foot — up 1.6 per cent a month. Razan Alzayani / The National
  • Town Square: Dh865 per square foot — down 1.8 per cent a month.
    Town Square: Dh865 per square foot — down 1.8 per cent a month.
  • Motor City: Dh651 per square foot — up 1.3 per cent a month.
    Motor City: Dh651 per square foot — up 1.3 per cent a month.
  • Dubai Silicon Oasis: Dh618 per square foot — up 1.4 per cent a month. Chris Whiteoak / The National
    Dubai Silicon Oasis: Dh618 per square foot — up 1.4 per cent a month. Chris Whiteoak / The National
  • Dubai Sports City: Dh592 per square foot — down 1.4 per cent a month. Reem Mohammed / The National
    Dubai Sports City: Dh592 per square foot — down 1.4 per cent a month. Reem Mohammed / The National
  • Discovery Gardens: Dh543 per square foot — up 2.5 per cent a month. Pawan Singh / The National
    Discovery Gardens: Dh543 per square foot — up 2.5 per cent a month. Pawan Singh / The National
  • International City: Dh442 per square foot — up 0.5 per cent a month. Antonie Robertson / The National
    International City: Dh442 per square foot — up 0.5 per cent a month. Antonie Robertson / The National

Dubai property prices: where they are rising and falling


Ian Oxborrow
  • English
  • Arabic

Property prices in Dubai rose in most areas of the city during February, according to CBRE.

Transaction volume in the year to date to February reached 11,071 — the highest total recorded in the first two months of the year.

Average prices were up 10.7 per cent in the year to February, with average apartment prices rising 9.1 per cent and villa prices increasing 21 per cent.

Click through the slideshow above to see where apartment prices have risen and fallen.

Where were the highest price increases in Dubai?

The Green Community (DIP) recorded the biggest month-on-month rise in the apartment sector in February, with a 3 per cent gain, followed by Jebel Ali at 2.8 per cent and Jumeirah, Dubai Festival City and Meydan City at 2.7 per cent.

In the villa segment, Jumeirah Village Circle properties rose on average 3 per cent in February, while Palm Jumeirah villas — which are the most expensive in Dubai per square foot — were up 2.9 per cent.

Downtown Dubai is the most expensive area per square foot for apartments, CBRE's Residential Market Snapshot for March 2022 showed.

See the villa price rises and falls in the slideshow below.

What's driving the rise in prices?

The UAE property market has been rebounding on the back of government initiatives, such as residency permits for retirees and remote workers, as well as the expansion of the 10-year golden visa programme, and the economic boost from Expo 2020 Dubai.

The market has also been benefited by the country's widespread coronavirus vaccination programme, which has kept cases relatively low compared to other countries around the world.

Meanwhile, demand for extra space and additional amenities amid spells of working from home during the past 12 months have also boosted activity within the real estate sector.

“In 2022 we have seen payment plans tighten and post-promotion mortgage rates increase. Despite this, residential transaction activity in Dubai is at historic highs,” said Taimur Khan, head of research Mena at CBRE in Dubai.

Business conditions in Dubai's non-oil private sector economy improved sharply in February, with the emirate's seasonally adjusted IHS Markit Purchasing Managers' Index climbing to 54.1 from 52.6 in January.

A reading above the neutral 50 level indicates economic expansion, while one below points to contraction.

“New business growth in Dubai is a “promising sign that the Omicron [Covid-19] variant has had only a minor impact on the economy compared to previous waves of the pandemic,” David Owen, an economist at IHS Markit, said.

Dubai property prices have been rising for some time now …

The value of property deals in Dubai more than doubled last year and broke a 12-year record for value of sales.

The emirate registered 61,241 sales deals worth Dh151.07 billion ($41.1bn) in 2021, making it the best year for total transactions since 2013 and the highest in terms of value since 2009, according to listings portal Property Finder.

Meanwhile, luxury home sales hit their highest last year since 2015, property consultant Knight Frank said in a report.

A total of 93 homes each worth more than $10 million were sold as wealthy buyers tapped into the post-coronavirus recovery.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

UAE currency: the story behind the money in your pockets
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Avatar: Fire and Ash

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Updated: June 22, 2023, 1:08 PM