Average residential property prices in Dubai rose by 4.4% in the 12 months ending in August, the highest annual increase since February 2015.
According to Arabiya Net, CBRE Real Estate Investment Group said that the continuous decline in rents indicates continued weakness in the sector, which has been in trouble for a long time. It also said that rents in Dubai continued their downward trend, declining 2.7% on average in the year to August.
Reuters reported in March that Dubai's luxury real estate market saw a boost after a sharp downturn caused by the COVID-19 pandemic, but the path to recovery remains long.
CBRE data showed that market trends continue to tilt in favor of villas over apartments, and prices remain below their historical heights.
While apartment prices rose 2.5% and villa prices increased 17.9% in the twelve months to August, they were still lower by 30.4% and 20.5% In order of peaks in her language in 2014.
Apartment rents fell 5.2% year-on-year in August while average villa rents rose 15.5%, the highest growth rate on record for the sector.
The office market witnessed an increase in occupancy, rising 28.8% in the third quarter of this year from 77.1% in the previous quarter. Meanwhile, average rents in premium and first to third grades declined between 4.1% and 6.5% year-on-year in the third quarter.
CBRE said pressure on prices came from new entrants, such as international and local technology firms, and Chinese and fintech firms. These companies tend to demand premium offices and first-class offices.
