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

Villas on Palm Jumeirah continue to gain in value along with other prime areas such as Emirates Hills

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The Dubai property market continued its growth in October, with prices having risen significantly throughout the year.

Average prices rose by 8.5 per cent for apartments and 13 per cent for villas, in the year to October, data compiled by property consultancy CBRE showed.

Month-on-month, there was a 1.4 per cent increase in apartment prices and a rise of 0.7 per cent for villas.

"The total volume of transactions in Dubai’s residential market registered was 8,269 in October 2022, highlighting an increase of 72.5 per cent from the prior year," CBRE said in its Dubai Residential Market Snapshot.

"This increase has been underpinned by a 133.5 per cent increase in off-plan market sales while secondary market sales rose by 29.4 per cent. In the year to date to October 2022, the total transaction volumes reached 71,412, this continues to be the highest total recorded since 2009."

Dubai's property market has picked up pace this year as the wider economy makes a strong recovery from pandemic-driven headwinds.

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Dubai villa prices - October 2022

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The emirate’s economy grew by 6.2 per cent in 2021, preliminary data from the Dubai Statistics Centre showed. In the first three months of this year, Dubai’s gross domestic product expanded 5.9 per cent, according to government data.

Business activity in Dubai's non-oil private sector economy maintained a "robust" rate of expansion in October. The emirate's headline seasonally adjusted S&P Global purchasing managers' index reading stood at 56, above the neutral 50 mark separating expansion from contraction.

Average prices in Dubai reached Dh1,149 per square foot for apartments, and Dh1,359 per square foot for villas, in October.

Compared to the highs recorded in 2014, these average rates are still 22.8 per cent and 6.0 per cent below this peak, for apartments and villas respectively, CBRE said.

The most expensive area for apartments per square foot was Jumeirah, while Palm Jumeirah was the priciest for villas.

Last month, a property deal for the purchase of land on Palm Jumeirah worth Dh600 million ($163.4m) was recorded by the Dubai Land Department.

That came a few weeks after a record was set for Dubai's most expensive property with the sale of a villa on Palm Jumeirah for Dh302m.

Meanwhile, a villa on Palm Jumeirah was in recent weeks rented on a six-month basis for Dh4m ($1.09m), as rents for luxury properties across the city soar.

This would, on an annual basis, surpass the previous record of Dh7.5m set by a villa in Emirates Hills last year.

Meanwhile, brokers across the city told The National that apartments are now the top preference for buyers in a reversal of the trend during the earlier parts of the pandemic when people sought the extra privacy and space offered by villas.

The shift was attributed to rising prices in the villa market, and multiple interest rate rises this year.

The Dubai property market is also expected to receive a further boost from the hosting of the football World Cup in Qatar this month and in December.

Updated: November 14, 2022, 4:30 AM
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