Dubai: Property prices of villas, some apartments surpass 2014 peak

Property prices continued their upward journey in March in Dubai, surpassing their 2014 peak level for villas and some apartment areas of the emirate.

According to real estate consultancy CBRE’s new report released on Thursday, average apartment sales rates are still 17.1 per cent below the highs of 2014, but there are a number of submarkets where these rates are now above their 2014 levels.

“Average villa sales rates across Dubai have now surpassed their 2014 high and now sit 0.7 per cent above this figure,” said Taimur Khan, head of research at CBRE.

In March 2023, average apartment prices stood at Dh1,234 per sqft and average villa prices at Dh1,455 per sqft, it said in its monthly report.

The emirate has seen a massive inflow of foreign investors in the past few quarters, including those from India, Pakistan, the UK, Russia and Europe, cashing in competitive rates. No Just investors, now the emirate is seeing billionaires such as India’s Mukesh Ambani and famous French influencer Nabilla Leona Benattia-Vergara joining the long list of people investing in Dubai.

Last month Dubai recorded 11,597 residential transactions, the highest monthly total ever in a month, taking the first quarter transaction volume to 29,323, the highest ever during the first quarter of the year.

Alex Galtsev, the founder and CEO of Realiste, explained the most expensive areas are mostly located near the waterfront, green areas, or the main tourist attractions.

“Those are factors that drive demand for property in Dubai and prices in turn,” he said, adding that some of these areas will also show considerable price growth in the next two years.

Realiste, an AI-powered platform collecting data on the local real estate sector, identified the most expensive locations in Dubai, with Jumeirah Bay claiming the top spot, with an average apartment cost of Dh20 million.

The other most expensive areas also include Al Sufouh, Umm Suqeim Second, Arabian Ranches, Bluewaters Island, Za’abeel, Al Yufrah, and Wadi Al Safa.

CBRE study added that average apartment prices increased by 12.4 per cent and villas by 14.8 per cent in the year through March 2023.

Jumeirah recorded the highest sales rate per square foot in the apartment category, reaching Dh2,441 while Palm Jumeirah villas recorded the highest sales rate per sqft of Dh4,457.

• Business