A record-breaking increase in apartment and villa rental segments has been seen in Dubai over the past 12 months. The average growth for the period up to January 2023 amounted to 28.5%.

For apartments and villas, there was a registered 28.8% and 26.1% growth respectively. In January 2023 the average rental cost of an apartment in Dubai was AED 98,307 (USD 26,800), while the average price for a villa was AED 290,242 (USD 79,000).

The highest rental prices were seen in Palm Jumeirah, both for apartments and villas. At the moment, the average annual rental prices on the iconic man-made island are AED 258,529 (USD 70,400) and AED 1,032,763 (USD 281,200) for apartments and villas respectively.

The Dubai real estate market saw a strong start in January 2023 when the total transaction volume grew by 69.2% in comparison to the previous year, and reached 9,229. During this period there was an increase of 88.1% in off-plan and 51.4% in secondary market sales.

From January 2022 to January 2023, the average real estate prices in Dubai rose by 10.6%, for example 10.3% for apartments and 12.9% for villas. In January 2023, the average apartment cost per sq. ft. in Dubai was AED 1,196 (USD 330), whilst villa costs stood at AED 1,411 (USD 390) per sq. ft. These numbers still didn’t beat the record of late 2014, being 19.6% and 2.4% lower for apartments and villas respectively.

However, in several communities, prices have surpassed the 2014 levels. In terms of apartments, the waterfront area of Jumeirah has seen the highest sales rate of AED 2,397 (USD 650) per sq. ft, whilst Palm Jumeirah showed the highest result for villas with AED 4,104 (USD 1,120) per sq. ft.

Dubai continues to attract investors from all over the world who want to generate a stable income in the future from renting out or selling the properties at a higher price. Among the most recently launched projects, which might become a perfect investment into your future, are The Sanctuary by Ellington Properties, District One West by Meydan Group in MBR City, as well as Palace Residences – North by Emaar Properties in Dubai Creek Harbour.