Dubai recorded its strongest ever first quarter in terms of residential transactions with the total volume of deals reaching 7,865 in March 2022, up 83.4 per cent from a year earlier.
Off-plan sales increased by 94.6 per cent and secondary market sales by 76.1 per cent in the quarter. Total transaction volumes in the year to date to March 2022 reached 19,009, this is the highest total ever recorded in the first quarter of the year.Taimur Khan, head of Research for Mena at CBRE in Dubai, said despite the continued increase in the cost of financing and further tightening of payment plans, Dubai’s residential market has yet to see this impact on transactional activity.“In fact, the total number of transactions in March reached 7,865, up from 5,598 a month earlier. As a result, this has been the strongest first quarter on record for Dubai in terms of residential transactions. While average prices and average rents continue to increase, we are seeing a moderation in both sales and rental growth rates in the villa segment of the market.”Strong rental returnsAccording to real estate experts, the market offers strong rental returns. Average apartment rents in Dubai rose by four per cent over Q4 2021, following a broadly stable Q3 — the steepest increase since 2014. Dubai’s reputation as a global business hub, its competitive real estate prices, strong rental returns, and expanded residency options make it ideal for new home buyers, according to Chestertons’ Research.Strong return on investment (ROI) is no longer confined to central locations like Downtown Dubai or Dubai Marina and can now be gained in vibrant suburban communities such as Sports City, Jumeirah Village Circle, Arjan, Arabian Ranches, and Al Barsha South, according to the real estate consultancy.Ata Shobeiry, chief executive of Zoom Property, said the first quarter of 2022 has produced record-breaking figures for the Dubai property market, signalling a strong year ahead.“After a struggling period, apartment prices have also touched double figures in March while villas continue their dominance with a 20.2 per cent growth in price. The market is expected to maintain this high momentum as it continues to capture the interest of foreign investors, particularly in the luxury housing category,” he said.Apartment, villa pricesThe CBRE report shows that average prices increased by 11.3 per cent in the year to March 2022. Over this period, average apartment prices increased by 10 per cent and average villa prices by 20.2 per cent. As at March 2022, average apartment prices in Dubai stood at Dh1,118 per square foot and average villa prices stood at Dh1,267 per square foot. Compared to the highs witnessed in late 2014, these rates per square foot are 26.2 per cent and 12.3 per cent 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 Dh2,021. Whereas in the villas segment of the market, Palm Jumeirah recorded the highest average sales rate per square foot at Dh2,910.Average rents in the 12 months to March 2022 have increased by 13.1 per cent, with average apartment and villa rents increasing by 11.7 per cent and 22.5 per cent respectively. As of March 2022, average apartment and villa rents stood at Dh80,000 and Dh238,441 per annum respectively.According to CBRE, in the rental market, the highest average annual apartment and villa rents respectively were found in Palm Jumeirah, where asking rents on average were Dh197,482, and in Al Barari, where asking rents on average were Dh801,940.
Source:
Dubai News TV
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