The exceptional transaction growth of the first quarter marks a new all-time high compared to previous years. According to CBRE, the total transaction volume from January to March 2022 was the highest ever in a first quarter.
The Dubai real estate market recorded a total sales value of nearly AED 56 billion with over 20,000 transactions, representing a massive 125% increase. This is due to a sharp increase in the sales volume of villas and apartments. Compared to Q1 2021, 77% more apartments and 58% more villas were sold. Apartment sales accounted for the majority of these transactions. Off-plan sales were up nearly 95% and secondary market sales were up nearly 75%. It is also exciting to note that mortgage transactions were down 27% year over year. This suggests that the high number of sales were by cash buyers or investors.
Prices for apartments increased by about 10% and for villas by about 20%. Compared to the highs of late 2014, average prices per square meter for apartments and villas are still 26% and 12% below the peak, respectively. Downtown Dubai registered the highest average selling price per square meter at over CHF 5,380 for apartments and Palm Jumeirah at over CHF 7,800 for villas.
Rents in Dubai also increased by approximately 13% in the 12 months to March 2022. Prices rose by an average of 11% for residential rents and 22% for villas. According to the Dubai property market report by Bayut & dubizzle, Dubai Marina is the most sought-after area for rental apartments, followed by Downtown Dubai and Palm Jumeirah. The most significant rent increases were achieved for 1-bedrooms on Palm Jumeirah.
This overall upward trend in Dubai property rental/sales prices can be attributed to the increased demand from the new wave of expats following Expo 2020. Likewise, the emirate's efficient policies, strong recovery from the Corona pandemic, and visa reforms are contributing to Dubai's popularity as a long-term residence. We expect price appreciation to certainly continue through the second quarter of 2022 and then slow down somewhat over the summer. For 2022 as a whole, we are very confident about the Dubai real estate market.
We are now enjoying the last week of Ramadan and enjoying a few holidays on Eid al-Fitr (early May). Nevertheless we are always available for you. 😊
Your Terra Nova Real Estate Team
Other news from Dubai
The most expensive property in Dubai was sold for AED 280 million. The buyer is now the proud owner of a 10-bedroom villa on the Palm Jumeirah. The villa has a gym, a hair salon and a 70 meter long private beach.