Average residential prices increased by 10.6% in the year to January 2023, with the average flat price increasing by 10.3% and the average villa price increasing by 12.9% over the same period.

The average price of a flat in Dubai in the year to January 2023 was AED 1,196 per square foot and the average price of a villa was AED 1,411 per square foot.

As of January 2023, these average sales prices for flats and villas were still 19.6% and 2.4% below their high records at the end of 2014, respectively.

Nonetheless, some communities have long surpassed their 2014 levels.

Jumeirah recorded the highest sales rate per square foot, reaching Dhs2,397 in the condominium segment of the market, while in the villa segment, Palm Jumeirah recorded the highest sales rate per square foot, reaching Dhs4,104.

In the 12 months to January 2023, average rents increased by 28.5%, the highest rental growth ever recorded in Dubai.

During the same period, average flat rents increased by 28.8% and average villa rents increased by 26.1%.

As of January 2023, the average annual rent for flats and villas reached AED 98,307 and AED 290,242 respectively.

The Palm Jumeirah has the highest rents for both flats and villas, currently averaging AED 258,529 and AED 1,032,763 per annum respectively.

CBRE's Head of Research - Middle East and North Africa in Dubai, Taimur Khan, commented.

"Dubai's residential market made its strongest start to the year in terms of transaction volumes, with 9,229 residential transactions in January 2023, up 69.2% on the same month last year and the highest in the previous January.

The increase in transactions underpinned the rise in prices, with the average sales price increasing by 10.6% in the year to January 2023, up from 9.5% a month earlier.

Average rents also continued to grow at a historic rate, increasing by 28.5% in the 12 months to January 2023.

While the annual growth rate is at an all-time high, we are seeing an increasing number of listings in core neighbourhoods begin to reduce their listing prices, indicating that in some areas the market is peaking."