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