Dubai property price growth expected to moderate in 2022 after strong start

Dubai: Dubai’s residential market continues to record strong levels of activity in 2022, with transaction volumes in January 2022 reaching 5,517, up 80.2% from January 2021. Over this period, off-plan sales increased by 187.5% and secondary market sales by 32.5%.

Average prices increased by 10.2% in the year to January 2022. Over this period, average apartment prices increased by 8.5% and average villa prices by 21.8%. As at January 2022, average apartment prices in Dubai stood at AED 1,085 per square foot and average villa prices stood at AED 1,250 per square foot. Compared to the highs witnessed in late 2014, these rates per square foot are 27.1% and 13.5% below the peak, for apartments and villas respectively.

In the apartments segment of the market, Downtown Dubai has recorded the highest average sales rate per square foot at AED 1,958. Whereas in the villas segment of the market, Palm Jumeirah recorded the highest average sales rate per square foot at AED 2,699.

Average rents in the 12 months to January 2022 have increased by 10.1%, with average apartment and villa rents increasing by 8.3% and 22.8% respectively. As at January 2022, average apartment and villa rents stood at AED 76,347 and AED 230,275 per annum respectively.

In the rental market, the highest average annual apartment and villa rents were found in Downtown Dubai, where asking rents on average were AED 150,723, and in Al Barari, where asking rents on average were AED 798,374.