Sobha Marina — new launch in Dubai
Judging by the Ejari data, in October 2022, the average rental price in Dubai increased by 27.3%, amidst a spike in demand for local real estate. At the same time, the amount of new contracts dropped by 4.7% but renewals were higher, with an increase of 33.6%, which is attributed to the unwillingness of tenants wanting to move due to the rental price surge.
The cost of renting an apartment grew by 27.5% and the average villa rental cost has reached 25.7%. As a result, the average yearly asking rental price for villas and apartments amounted to AED 91,795 (USD 25,000) and AED 273,740 (USD 74,000) respectively. Palm Jumeirah remains the costliest area in terms of apartment rentals, which averaged at AED 242,250 (USD 66,000) in October, while Al Barari offers the most expensive villas in Dubai priced at AED 956,174 (USD 270,000) on average.
Join over 20,000 members to get weekly updates on new off-plan launches and latest news & tips
In terms of the property sales market, average prices have risen by 9.2% in the year to October, with villas and apartments having registered a 13% and an 8.5% increase. That being said, the average apartment prices constituted AED 1,149 (USD 312) per sq. ft and the average villa prices reached AED 1,359 (USD 370) per sq. ft in October. Jumeirah was the most expensive destination for apartments for purchase, with an average cost per sq. ft of AED 2,226 (USD 606), whereby Palm Jumeirah is the most expensive location for villas, with an average price of AED 3,704 (USD 1,008) per sq. ft.
In the year to October 2022, a whopping 71,412 transactions were registered in Dubai, which is an astonishing spike compared to 29,394 deals recorded in 2019. Taking into account such a strong growth in sales, it is highly likely that the number of transactions in 2022 will surpass the 2009 total.
It is also worth noting that on November 14th, the real estate giant; Emaar Properties announced that its revenue during the first 9 months of 2022 amounted to AED 18.9B (USD 5.1B) as a result of the strong performance of the Dubai real estate sector and the ongoing growth in its recurring revenue businesses. In fact, the EBITDA and net profit of the master developer during January-September 2022 increased by 47% and 124% respectively.
Earlier this year, Emaar Properties decided to fully acquire Dubai Creek Harbour from Dubai Holding for AED 7.5B (USD 2.04B). This coveted waterfront area has recently witnessed the launch of the second phase of THE COVE, with a deluxe collection of elegant apartments, duplexes and penthouses.
Leave a Request and We'll Get Back to You Soon!
Is living in Dubai for 13 years and helping Tenants, Landlords and Investors for the past 7 years. She will share with you her wealth of experience, assist you to make the right property choice and answer all your questions related to documentation, procedures, property inspection, move in and many more.
Sign up for our weekly newsletter for market updates!