Dubai property prices: where they rose and fell — August 2022


Ian Oxborrow
  • English
  • Arabic

Dubai property prices continued to rise in August, with transaction values also increasing despite a challenging global economic backdrop.

Average apartment prices were 7.7 per cent higher annually last month while villa prices rose by 15.8 per cent annually, according to data from property consultancy CBRE.

On a monthly basis, apartment prices were up 0.5 per cent compared with July and villa prices rose by 0.3 per cent.

The average rates are still well below the peak of 2014, with apartments 24.7 per cent cent lower and villa prices down 7.3 per cent, CBRE said.

The Dubai property market has witnessed a year of rampant price growth on the back of the UAE's broader economic recovery after the coronavirus-induced slowdown, as well as initiatives such as the expansion of the country's golden visa programme.

“August’s total volumes of transactions in Dubai’s residential market reached 9,257, the fifth highest monthly total ever recorded,” said Taimur Khan, head of research for the Mena region at CBRE in Dubai.

“Transactional activity in the sector is continuing to defy both a challenging global economic backdrop and what is usually is a more subdued period for transactional activity.”

Rising rents in the city are leading to tenants seeking to purchase property despite interest rates continuing to increase, according to online portal Mortgage Finder.

It reported a rush of mortgage borrowers opting into fixed-rate products, hoping to stabilise their housing costs.

“First-time homebuyers are actively considering a house purchase to provide more stability to their families due to high rental prices that have skyrocketed throughout the city,” said Mohamad Kaswani, managing director of Mortgage Finder.

“Additionally, as demand for residential properties continues to rise, many tenants find themselves pressured to purchase the properties they are residing in to alleviate the stress resulting from landlords demanding higher rental prices.”

Dubai property prices experienced their slowest monthly growth rate in 18 months in August, according to a report by property consultancy ValuStrat.

“The villa submarket continued to perform, albeit at a slower 1.3 per cent month-on-month expansion,” its August report said.

Check apartment price rises and falls in the slide show below:

Areas that recorded the highest price increases

On the apartments side, Remraam and Dubailand Residence Complex recorded the biggest monthly price increases at 4.8 per cent while villas at Falconcity of Wonders also registered a similar increase in value.

The prime areas of Dubai also continued to record growth, with Jumeirah apartments up 3.4 per cent, month on month, and Palm Jumeirah villas up 2 per cent.

However, prices in typically popular areas such as Dubai Marina and Jumeirah Lakes Towers fell, as they did in the villa segment in Jumeirah, Jumeirah Golf Estates and District One.

In the apartments segment of the market, Jumeirah registered the highest average sales rate per square foot at Dh2,152 ($586), while in the villas segment, The Palm Jumeirah registered the highest average sales rate per square foot at Dh3,588.

Are rents on the rise as well?

Yes, significantly. Average apartment rents were up 24.9 per cent year on year while average villa rents increased by 24.2 per cent, CBRE said.

The highest annual apartment rents were at Palm Jumeirah (Dh222,870) while Al Barari had the highest villa rents (Dh935,046) in August.

However, the rate of rental growth is slowing.

“The growth rate of rents, on a month-on-month basis, has slowed for three consecutive months now, indicating we may see the rental growth rate start to moderate in the not too distant future,” said Mr Khan.

Villa rents in Emirates Hills in August were up 4.7 per cent month on month while Victory Heights villa rents rose 4.3 per cent during the same period.

Apartment rents rose in all areas of the city, except the Dubai International Financial Centre, Dubai Sports City and the Dubailand Residence Complex.

How has net migration to UK changed?

The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.

It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.

The total rose to 254,000 in the year to June 2021, followed by steep jumps to 634,000 in the year to June 2022 and 906,000 in the year to June 2023.

The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.

Jiu-jitsu calendar of events for 2017-2018:

August 5:

Round-1 of the President’s Cup in Al Ain.

August 11-13:

Asian Championship in Vietnam.

September 8-9:

Ajman International.

September 16-17

Asian Indoor and Martial Arts Games, Ashgabat.

September 22-24:

IJJF Balkan Junior Open, Montenegro.

September 23-24:

Grand Slam Los Angeles.

September 29:

Round-1 Mother of The Nation Cup.

October 13-14:

Al Ain U18 International.

September 20-21:

Al Ain International.

November 3:

Round-2 Mother of The National Cup.

November 4:

Round-2 President’s Cup.

November 10-12:

Grand Slam Rio de Janeiro.

November 24-26:

World Championship, Columbia.

November 30:

World Beach Championship, Columbia.

December 8-9:

Dubai International.

December 23:

Round-3 President’s Cup, Sharjah.

January 12-13:

Grand Slam Abu Dhabi.

January 26-27:

Fujairah International.

February 3:

Round-4 President’s Cup, Al Dhafra.

February 16-17:

Ras Al Khaimah International.

February 23-24:

The Challenge Championship.

March 10-11:

Grand Slam London.

March 16:

Final Round – Mother of The Nation.

March 17:

Final Round – President’s Cup.

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More than 2.2 million Indian tourists arrived in UAE in 2023
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Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

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COMPANY PROFILE

Company: Bidzi

● Started: 2024

● Founders: Akshay Dosaj and Asif Rashid

● Based: Dubai, UAE

● Industry: M&A

● Funding size: Bootstrapped

● No of employees: Nine

Updated: September 14, 2022, 8:54 AM