Sales prices for residential properties have surged by 34% in the city of Dubai in a couple of areas in the previous year alone.
Where the rental rates for homes are concerned, they have witnessed a jump of 36%, with commercial leasing rates seeing an increase of more than a third in different business zones.
Chestertons took to examining commercial and residential leasing and sales prices in some of the most popular areas in Dubai.
Consequently, it reported significant increases in the two sectors, along with slight reductions in the prices of homes in a few areas.
The research goes on to cover a number of homes located in Downtown, Palm Jumeirah, Dubai Hills, Dubai Marina and Mohammad Bin Rashed City.
Where commercial spaces are concerned, the research focused on Jumeriah Lakes Towers, Barsha Heights, Dubai Investments Park, and Business Bay.
According to the Chief Executive Officer of Chestertons MENA, Nick Witty, the real estate sector in Dubai is showing substantial demand for both commercial and residential properties.
He went on to talk about how Dubai Hill is indicating the strongest hike in both villa and apartment prices.
In his words, properties in the area have shown year-on-year increases, the same as the homes located in Mohammad Bin Rashed City.
The report by Chestertons MENA provides additional insight into the sales prices in the third quarter, showcasing a swift increase of around 28%.
Meanwhile, rental rates have been recorded to go up by as much as 36% in comparison to the previous year.
In addition, the city has recorded sustained surges in commercial space sales transactions, which are believed to be driven due to a potential threat of eviction and rising rents.
Where the figure is concerned, commercial property prices have gone up by 44% in the first nine months of the current year, as compared to the corresponding period of 2022.
Hikes in prices
In all the locations that were a part of the study, the cost of purchasing a home was revealed to be 34% higher in the third quarter, as compared to the previous year.
This number was more than a third greater than that showcased last year and 9% higher than the second quarter of 2023.
On the other hand, apartments located in Dubai Hills currently cost an average of AED1,882 per square foot, which is a 25% increase from 2022.
Meanwhile, Palm Jumeirah recorded the highest prices per square foot for apartments and villas.
At this location, the year-on-year apartment prices went up by 17%, standing at AED2,632 per square foot.
Despite the hike in prices in the area, the year-on-year villa prices saw a decrease of 2%, with prices currently being recorded at AED5,094 per square foot.