July Unleashes Over 20% Surge in Dubai’s Property Rents

Dubai’s Residential Market Pulse

July 2023 witnessed an impressive surge in Dubai’s residential transactions, totalling 10,080—a remarkable 53.4% YoY upswing. The momentum was fueled by a substantial 78.4% uptick in off-plan market sales and a notable 33.8% rise in secondary market sales. Year-to-date figures till July 2023 reached an all-time high of 67,818 transactions—a historic record for this period.

Dubai’s residential sales market continues its robust price growth trajectory.

From June to July 2023, average prices escalated by 18.1%, surging beyond the 16.9% rate registered in June. Apartment prices surged by 18.5%, reaching AED 1,320 per square foot, while average villa prices climbed by 16.2%, touching AED 1,552 per square foot. Though average apartment sales prices remain 11.3% below the 2014 peak, several core and prime submarkets have outperformed their 2014 levels. On the other hand, average villa prices triumphantly exceed their 2014 peak by 7.4%.

Palm Jumeirah commands the highest price points in both the apartment and villa segments. AED 2,463 and AED 4,943 per square foot, respectively, showcase its premier status. Meanwhile, the rental market’s moderation trend continued for the sixth consecutive month, with a 22.8% rise noted in June 2023.

Over this period, average apartment rents surged by 21.9%, and average villa rents rose by 22.6%. As of July 2023, the average yearly apartment and villa rents stood at AED 105,691 and AED 319,994, respectively.