Dubai: Popular residential locations in Dubai and Abu Dhabi showed rising rental rates, the UAE Real Estate Market Review – Q1 2022 published by CBRE showed. The report released on April 20 by the real estate and investment services firm also looked at real estate trends in the country in terms of office space in Dubai and Abu Dhabi, as well as trends in the hospitality sector.
Business Bay in Dubai recorded the largest month-on-month (MoM) increase in apartment rental prices, of 4.9%, while apartment prices in Green Community in DIP posted the most sharp increase in MoM rates in Dubai, based on this report.
The report shows that the UAE real estate sector has had an exceptional start to the year, with property prices and rentals showing a steady rate of growth.
Rent Abu Dhabi, real estate prices
According to data from CBRE, rents in the Abu Dhabi residential market have increased by 0.6% on average over the year to March 2022. During this period, average apartment rents have increased by 1.1%, while average rents for villas fell by 1.6%.
In terms of property prices, the average price per square meter of apartments in Abu Dhabi stood at Dh10,904 on average in March 2022. Average villa prices over the same period rose to Dh8,850 the square meter. n Al Raha Beach, Al Maryah Island or Reem Island.
More than 9,500 new units are expected to be delivered in the emirate this year, with more than 70% on Al Raha Beach, Al Maryah Island or Reem Island.
Rental in Dubai, real estate prices
In Dubai, the trend is for residents to renew rather than register new leases, based on data from the Dubai Land Department cited in this report. In the first quarter of 2022, the number of new contracts registered decreased by 2.3%, while the number of renewed contracts increased by 29.6%.
In Dubai, as numerous reports have shown this quarter, average rental rates have increased by 13.1% in the year to March 2022, the highest growth rate since December 2014.
Palm Jumeirah, The Old Town, Dubai Marina, International City, Business Bay and Damac Hills (Akoya) earn the most in terms of rental rates, at 4% or more month-over-month. Arjan, Bur Dubai and Liwan are the areas that saw lower rates according to CBRE data.
In terms of property purchases, the report states: “Average prices in Dubai increased by 11.3% in the year to March 2022. During this period, average apartment prices increased by 10% and average villa prices increased by 20.1%.
UAE GDP, PMI
The United Arab Emirates had a solid year in terms of economic performance, regionally and globally. The United Arab Emirates recorded the highest gross domestic product (GDP) growth rate in the region in 2021, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates, tweeted on April 7. and ruler of Dubai.
Sheikh Mohammed said: “The Statistics Center has announced the UAE’s Gross Domestic Product for 2021. While the World Bank forecast the UAE’s economy to grow by 2.1%, we have reached a rate growth of 3.8% in 2021 (higher than the growth achieved in 2019. This is the highest in the region. At current prices, our GDP was 1,489 trillion dirhams.
“Despite the challenges the world has faced, the UAE has been steadily moving forward. Our economy is growing and so is our development journey. Our competitiveness is improving and our future looks great. Our message to our people is that the best is yet to come,” Sheikh Mohammad tweeted.
The UAE’s Purchasing Managers Index (PMI) for March recorded a healthy level of 54.8, well above the median of 50. It indicates that businesses are steadily increasing their capacity to return to pre-COVID figures. pandemic. Incoming orders – which had shown steady increases during the six-month Expo phase – show all signs of holding up in the coming weeks.