Just three months into 2023, Dubai's red-hot real estate market has set new records in terms of transaction volumes as buyers and investors from around the world continue to flock to the glamorous city.

According to real estate consultancy CBRE Group, total transactions reached 29,323 in the year to March 2023, which was the highest recorded in the first quarter of the year.

During this period, 11,597 residential transactions were registered in Dubai, the highest monthly total ever and a growth rate of 47.3 per cent compared to last year. This growth was supported by a 96.1% increase in transactions in the off-plan market and a 12.4% increase in transactions in the secondary market.

Supported by visa reform and investor-friendly policies, Dubai rebounded from its 2020 slump to become one of the fastest growing markets in the world. While still much cheaper than property in New York or London, prices and rents have ballooned in the last year due to a surge in demand from global investors. The invasion of Ukraine has led to Russian nationals, who are looking to ring-fence their wealth from Western sanctions and move out of their country. Dubai is one of their preferred destinations.

 In addition, Chinese investors who stayed away during the pandemic are relocating to the city, as are cryptocurrency millionaires from Europe and businesses looking to avoid high taxes and painful levels of inflation.

The CBRE report shows that average residential prices in Dubai increased by 12.8% in the year to March 2023, with average flat prices increasing by 12.4% and average villa prices increasing by 14.8% over the same period.

The average price of a flat was AED 1,234 per square foot and the average price of a villa was AED 1,455 per square foot as of March 2023.

The Jumeirah flat market had the highest sales rate per square foot at Dhs2441, while the Jumeirah Palm Villas market had the highest sales rate per square foot at Dhs4457.

CBRE said the average rent for residential properties had jumped by more than 26 per cent in the year to March. The average rent for flats rose by 26.3 per cent, while the average rent for villas rose by 26.2 per cent. As of March 2023, the average annual rent for flats and villas has reached A$101,044 and A$300,984 respectively.

The highest average flat and villa rents are found in Palm Jumeirah, where the average annual rents have reached AED 264,537 and AED 1,000,489 respectively.