Dubai Real Estate Market Report — July, 2022

Dubai Real Estate Market Report – July 2022

Dubai's residential and commercial market established a new high in July 2022, logging 7,240 total transactions worth AED 21.26 billion at a median of AED 1,170/sqft - the largest monthly figure the series has ever recorded on both volume and value. Setting aside plots and buildings, the Apartment, Villa and Commercial segments on their own delivered 7,026 deals, up 70% from July 2021, and AED 16.39 billion in value, up 78%.

This was neither a single-segment tale nor a statistical fluke against a weak comparison: the growth was widespread, driven by prices and genuinely record-setting, with apartments carrying most of the load and villas not far behind.

Headline figures

Year-on-year performance by category

Apartments drove the expansion. The segment registered 4,980 transactions, a 65% annual rise - an addition of 1,965 deals - generating AED 9.45 billion in value, up 78%. That stands as the highest July volume in the 9-year series. Importantly, the advance showed up in prices as well as counts: the median came in at AED 1,484/sqft, up 19% over the year and 35% above the 2014 base, itself a record July price per square foot. The median apartment ticket climbed to AED 1,275,000, up 20%.

Villas kept pace. The 1,700 villa deals rose 73% year on year - 715 above the prior year - yielding AED 6.37 billion, up 71%, and likewise the series' strongest July volume. Villa pricing strengthened to AED 950/sqft, up 17% on the year and 29% over 2014, a further July record. The lone measure heading the other way was the median villa ticket at AED 2,034,384, down 23% - evidence that surging demand reached deeper down the price ladder rather than any easing of value, given per-square-foot pricing climbed.

Commercial posted the sharpest percentage jumps off a small base. Its 346 deals climbed 145% and its AED 570.37 million in value soared 241% - the highest July commercial volume since 2014. Pricing, though, parted ways with the residential trend: the commercial median softened to AED 759/sqft, down 5% on the year and 33% under 2014, while the median commercial ticket eased 5% to AED 761,506.

Ordered by value, apartments came first, then villas, followed by plots, commercial and a lone building. That building - a single deal at AED 14,000,000 - held the largest median ticket of any category, a reminder that headline value and typical deal size view the same market through different lenses.

Every category, including plots and buildings

Plots punched far above their deal count: a mere 213 deals produced AED 4.86 billion, ranking land third by value behind apartments and villas despite the modest volume. The typical plot traded at a median ticket of AED 5,900,000 - towering over the residential segments and underlining how a few sizeable land trades can shift the all-property total by themselves.

Primary versus resale

The primary market led on activity, but the two channels sat closer on value. Off-plan and developer sales represented 61% of volume and 57% of value - 4,283 deals worth AED 9.34 billion - while resale made up 39% of volume yet a marginally larger 43% of value, on 2,743 deals totalling AED 7.04 billion. Resale's value share exceeding its volume share signals a higher average price on secondary-market trades.

Where the activity was

The market's centre of gravity remained in the established prime and central districts. Downtown Dubai headed the value table at AED 1.81 billion, ahead of Palm Jumeirah at AED 1.75 billion and Marsa Dubai at AED 1.69 billion, with Business Bay (AED 1.18 billion) and Al Hebiah Fifth (AED 1.17 billion) completing the top five. On transaction count, Business Bay came first with 772 deals, then Downtown Dubai (656), Marsa Dubai (570), Al Hebiah Fifth (497) and Jabal Ali First (338). Four districts - Downtown Dubai, Marsa Dubai, Business Bay and Al Hebiah Fifth - feature on both the value and volume lists, marking them as the month's true dual-engine locations.

Rental market

The rental market tightened almost across the board, if unevenly. New apartment leases were the outlier on count, easing 4.82% to 9,229 contracts, yet the median new apartment rent still rose 20% to AED 48,000 (AED 58/sqft, up 20.83%); renewals ran the reverse on volume, up 47.43% to 8,719 at a median of AED 46,000. New villa leases increased 12.43% to 1,438 with the median at AED 130,000 (up 8.33%), and both new and renewed commercial leasing gained ground, with new commercial rents up 11.94% to a median of AED 83,958. In sum, tenants met higher rents across apartments, villas and commercial premises, the sole retreat being the count of brand-new apartment contracts.

Supply

Developers kept the pipeline weighted toward new supply: 2,697 units launched over 11 projects versus 1,176 units delivered across 5 projects - a launch-to-delivery ratio of 2.3 and a net 1,521 more units launched than handed over, indicating sustained confidence in future absorption.

Launched

• Marina Shores – Marsa Dubai (Emaar), 447 units
• Pg Upper House – Jabal Ali First (Pg Properties), 105 units
• Verdana(Phase 2) – Dubai Investment Park First (Reportage), 127 units
• Mbl Royal – Al Thanyah Fifth (Mbl), 339 units
• Zubaida Residency – Wadi Al Safa 3 (Zenith Holding), 62 units
• Beachgate By Address – Marsa Dubai (Emaar), 252 units
• Palm Beach Towers - 2 – Palm Jumeirah (Nakheel), 321 units
• Hills Park – Hadaeq Sheikh Mohammed Bin Rashid (Emaar), 450 units
• Berkeley Place – Al Merkadh (Ellington), 127 units
• The Ivy – Al Barsha South Fifth (Metrical), 253 units
• Castleton – Al Wasl (Meraas), 214 units

Delivered

• Farhad Azizi Residence – Al Jaddaf (Azizi), 681 units
• Binghatti Gems – Al Barsha South Fourth (Binghatti), 77 units
• Le Pont - Building 3 – Jumeirah First (Meraas), 159 units
• La Riviera Azure – Al Barsha South Fourth (Riviera Developments), 88 units
• Binghatti Rose – Al Barsha South Fourth (Binghatti), 171 units

Most expensive sales

Top apartment sales

1. AED 42,000,000 – The Address Residence Fountain Views 3, Downtown Dubai
2. AED 35,000,000 – Palme Couture Residences, Palm Jumeirah
3. AED 32,617,000 – Le Ciel - Building 3, Jumeirah First
4. AED 27,741,000 – Safa One Tower A, Al Wasl
5. AED 25,101,012 – The St. Regis Residences - Tower 1, Downtown Dubai

Top villa sales

1. AED 302,500,000 – Palm Jumeirah
2. AED 55,000,000 – Jumeirah Bay Islands
3. AED 52,500,000 – Al Merkadh
4. AED 46,000,000 – Emirates Living
5. AED 41,915,000 – Al Hebiah Fourth

Notes on methodology

Scope. Headline totals and the category table span every property type captured in the data, Plot and Building included. The primary/resale breakdown, top-area rankings and the year-on-year series include Apartment, Villa and Commercial only, so those numbers are intentionally smaller than the headline and should not be summed across sections.

Rounding. The headline totals are the definitive rounded values. Category-level figures are rounded separately and may not add up precisely to the headline.

Definitions. Quoted prices are medians rather than averages. Year-on-year sets the period against the matching period twelve months before. Every value is in AED and all areas are in square feet.