Average prices across Dubai's property market continued to rise in November amid record transaction levels.
However, the pace of rising prices, which has been significant throughout this year, is easing, according to property consultant CBRE.
“Activity levels in Dubai’s residential market have reached record levels in the year-to-date to November 2022 with total transactions volume reaching 81,919, surpassing record highs of full year 2009, when transaction numbers totalled 81,182,” said Taimur Khan, head of research for the Mena region at CBRE in Dubai.
“This strong level of activity has continued to support increases in average prices, which for apartments and villas have risen by 9 per cent and 12.7 per cent in the 12 months to November 2022, respectively.
“However, we are seeing the rate of average price growth slowing, particularly in the villa market, a trend which we expect the apartment market to follow suit in the short run.”
Average apartment prices rose 1 per cent a month in November while average villa prices were up 1.1 per cent, CBRE data shows.
Certain prime markets will continue to record strong growth rates, Mr Khan said.
The prime market, in particular, has reported big prices, which are expected to end the year about 50 per cent higher than last year, Knight Frank said, while they are projected to grow by a further 13.5 per cent next year.
Palm Jumeirah villas, which have this year set records for the most expensive sale and rental, are the most expensive per square foot in the city at Dh3,802 after a 2.6 per cent monthly rise in November.
This follows monthly price rises of more than 4 per cent in four of the past seven months.
In the 12 months to November 2022, average prices in Dubai increased by 9.5 per cent, with apartment prices up 9 per cent and villas 12.7 per cent.
Average apartment prices stood at Dh1,161 per square foot in November while average villa prices stood at Dh1,374 per square foot.
These remain below the highs recorded in 2014 by 22 per cent and 4.9 per cent, respectively, CBRE said.
Dubai's property market has picked up pace this year as the wider economy makes a strong recovery from pandemic-driven headwinds.
The emirate's economy expanded by 4.6 per cent on an annual basis in the first nine months of this year to about Dh307.5 billion ($84 billion), driven by its efforts to solidify its position as a business, financial and tourism centre, Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, said this week.
Business activity in the non-oil private economy expanded at a robust pace, driven by a boost in new orders in November.
The emirate's seasonally adjusted S&P Global purchasing managers' index reading for November stood at 54.9, above the neutral 50 mark separating expansion from contraction.
In the rental sector, average asking rents rose by 27.3 per cent in the year to November, with average apartment rents increasing by 27.6 per cent and average villa rents by 25.4 per cent, respectively, CBRE said.
Palm Jumeirah registered the highest average annual apartment and villa rents, where asking rents reached an average of Dh243,219 and Dh982,047, respectively, according to CBRE's Residential Market Snapshot.