Dubai’s residential sales hit a 13-year high in May, mostly driven by new developments, according to the latest market data.
The residential transactions in the first five months of the year totaled 30,903 homes, the most since 2009. That number was up 33% compared to the same period last year, according to a monthly report by CBRE released Monday.
New construction homes were the main market drivers, with off-plan sales rising 55.4% year over year in May. The secondary market, or existing-home sales, increased 18% from a year ago, the report said.
FROM PENTA: How to Invest in a ‘Period of Normalization’
Across all types of residential properties in Dubai, average prices increased 10.9% year-over-year in May. Villa prices were up 19.8% to an average of AED 1,307 (US$356) per square foot, while apartment prices stood at AED 1,102 per square foot, up 9.6% from a year ago, according to the report.
Average prices for both villas and apartments were still well below their peaks recorded in late 2014. The rates per square foot were 25.9% below the peak for apartments and 9.5% for villas, CBRE said.
The rental segment in Dubai grew in tandem with the sales market, with average rents increasing 19.1% year over year in May. The average yearly rent for a typical villa stood at AED 249,677, and the average apartment rent was AED 83,485, according to the CBRE report.