Dubai property rates increase at fastest pace since 2014

DUBAI (Agencies): Dubai residential property prices in the year to June 30 rose at their fastest in almost a decade, climbing by 16.9%, while average rents jumped by 22.8%, property consultancy CBRE said on Tuesday.

The average apartment price per square foot reached 1,294 dirhams ($352.31), and villas averaged 1,525 dirhams per sq ft.

Dubai, home to the world’s tallest skyscraper and palm-shaped man-made islands, has become one of the fastest-growing cities, recording a population of 3.6 million on July 5, according to the emirate’s statistic centre.

Its property market has boomed after a swift post-pandemic economic rebound and relaxed residency rules.

In June, 9,876 residential units were sold, up 18.8% from a year earlier, with off-plan sales jumping 44.9%, while the secondary market’s sales weakened by 0.5%, CBRE added.

Average rent was up 22.8% in the year to June 30, slowing from the 24.2% growth recorded at the end of May.

“Rental growth rates in several major areas are moderating and many listings within these communities are reducing asking rents,” said Taimur Khan, CBRE’s head of research.