Property prices across Dubai continued to rise in March, driven by an increase in investor demand, CBRE says.
The total volume of transactions reached 7,865 last month — an increase of 83.4 per cent compared to a year earlier, while off-plan sales were up 94.6 per cent and secondary market sales up 76.1 per cent.
Total transaction volumes in the first three months reached 19,009.
Average residential property prices rose by 11.3 per cent in the first quarter of this year, CBRE said in its market snapshot. Average apartment prices were up by 10 per cent and villa prices by 20.2 per cent.
Click through the slideshow above to see where apartment prices have risen and fallen.
Where were the highest price increases in Dubai?
In the apartment sector, Green Community saw the biggest month-on-month increase in sales prices in March at 4.9 per cent.
It was followed by Dubai Sports City (4.5 per cent increase), Jebel Ali (4.2 per cent), Remraam (4 per cent) and Business Bay (3.9 per cent).
Palm Jumeirah was up 3 per cent, as was Downtown Dubai, which is the most expensive area for apartments in the city by square foot.
In the villa segment, prices on Palm Jumeirah rose the most at 4.8 per cent, along with Jumeirah, on a monthly basis in March. District One and Jumeirah Islands also had notable price increases of 3.8 per cent.
See the apartment 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 benefited from the country's widespread coronavirus vaccination programme, which has kept cases relatively low.
“Despite the continued increase in the cost of financing and further tightening of payment plans, we have yet to see this impact transactional activity in Dubai’s residential market," said Taimur Khan, Mena head of Research at CBRE.
"In fact, the total number of transactions in March reached 7,865, up from 5,598 a month earlier. As a result, this has been the strongest first quarter on record for Dubai in terms of residential transactions.
"While average prices and average rents continue to increase, we are seeing a moderation in both sales and rental growth rates in the villa segment of the market.”
The UAE economy is expected to grow 4.9 per cent in 2022, Japan's largest lender MUFG Bank said, while Emirates NBD forecasts growth of 5.7 per cent and Abu Dhabi Commercial Bank estimates a 5 per cent expansion.
Meanwhile, S&P Global Ratings said last month that property prices and rents in Dubai's residential market will continue to increase in 2022, in line with the trend seen in 2021.
Properties are also "relatively affordable", with prices 25 to 30 per cent below 2014 levels, despite a significant rise in 2021, the agency said.
Dubai price changes in March - apartments
- Downtown Dubai - up 3 per cent
- Jumeirah - down 0.2 per cent
- Palm Jumeirah - up 3 per cent
- DIFC - up 2.4 per cent
- The Old Town - up 1.4 per cent
- Jumeirah Beach Residence - down 0.6 per cent
- Business Bay - up 3.9 per cent
- MBR City - up 2.6 per cent
- Dubai Hills Estate - 2.1 per cent
- Dubai Marina - down 1.1 per cent
- The Views - up 0.9 per cent
- Dubai Festival City - up 1.1 per cent
- Meydan City - down 0.5 per cent
- The Greens and The Views - up 1.7 per cent
- Jumeirah Lakes Towers - down 0.4 per cent
- Damac Hills (Akoya) - up 2 per cent
- Dubai Science Park - down 1.9 per cent
- The Greens - up 0.1 per cent
- Jebel Ali - up 4.2 per cent
- Arjan - up 4.2 per cent
- Jumeirah Village Circle - up 1.2 per cent
- Town Square - up 1.1 per cent
- Green Community (DIP) - up 4.9 per cent
- Motor City - up 2.8 per cent
- Dubai Sports City - up 4.5 per cent
- Dubai Production City (IMPZ) - down 2.5 per cent
- Living Legends - down 1.3 per cent
- Dubai Silicon Oasis - down 2.6 per cent
- Remraam - up 4 per cent
- Discovery Gardens - down 1.6 per cent
- Dubailand Residence Complex - down 1.3 per cent
- Liwan - down 2.9 per cent
- International City - up 0.1 per cent
Dubai price changes in March - villas
- Palm Jumeirah - up 4.8 per cent
- Emirates Hills - up 2.9 per cent
- Jumeirah - up 4.8 per cent
- District One - up 3.8 per cent
- MBR City - up 0.2 per cent
- The Meadows - up 2.7 per cent
- Dubai Hills Estate - up 0.8 per cent
- Jumeirah Islands - up 3.8 per cent
- The Lakes - up 2.6 per cent
- Jumeirah Golf Estates - up 2.9 per cent
- Arabian Ranches - up 1.1 per cent
- Meydan City - up 1.2 per cent
- The Springs and The Meadows - down 1.8 per cent
- Al Barari - down 2.6 per cent
- Jumeirah Park - down 2 per cent
- Victory Heights - down 2 per cent
- The Springs - down 0.5 per cent
- Damac Hills (Akoya) - up 0.7 per cent
- Mudon - up 1.9 per cent
- The Sustainable City - down 0.4 per cent
- Jumeirah Village Triangle - down 2.5 per cent
- The Villa - up 1.7 per cent
- Reem - up 1.6 per cent
- Town Square - up 1.4 per cent
- Al Furjan - down 0.5 per cent
- Living Legends - up 2.3 per cent
- Green Community (DIP) - down 1.9 per cent
- Falconcity of Wonders - up 0.2 per cent
- Jumeirah Village Circle - up 0.1 per cent
- Akoya Oxygen - down 0.2 per cent