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Over the past 12 months, the average cost of renting an apartment has increased by 28.8%, while renting a villa has increased by 26.1%.
As of the first month of 2023, the average apartment rental price was AED 98,307 (USD 26,767) per year and the annual cost of renting a villa was AED 290,242 (USD 79,025).
Palm Jumeirah is the most expensive area to rent both apartments and villas. Currently, the average rental rate for apartments here is AED 258,529 (USD 70,390), and for villas amounts to AED 1,032,763 (USD 281,192) per year.
Dubai's housing market is off to a pretty good start this year with 9,229 real estate transactions within the first month of 2023. Compared to 2022, this figure has increased by 69.2%.
There were also changes in the off-plan and in the secondary real estate market, as sales increased by 88.1% and 51.4%, respectively.
As of January 2023, an increase in the cost of housing by 10.6% was recorded. Apartments became more expensive by 10.3% and villas by 12.9%.
For the first month of 2023, the cost of buying an apartment in Dubai is AED 1,196 (USD 326) per sq. ft, and the average cost of a villa is currently AED 1,411 (USD 384) per sq. ft.
By the beginning of this year, the average selling price of apartments and villas rose by 19.6% and 2.4%, which is below the record levels of 2014, however some communities have already surpassed their own 2014 numbers.
Villas and apartments in Palm Jumeirah have the highest price per square foot. The cost of apartments reaches AED 2,397 (USD 653) per sq. ft, and villas AED 4,104 (USD 1,117) per sq. ft.
A large number of real estate transactions have contributed to the rise in prices. Average prices rose by 10.6% by the beginning of 2023, compared to 9.5% a month earlier.
By the beginning of 2023, rental prices continued to grow and have risen by 28.5%. But despite the high level of growth, the market is slowly starting to reach its peak, as some communities are already reducing the previously delivered price.
