Dubai’s residential property market experienced a significant increase in prices in the past 12 months as the city saw an ease in pandemic-related restrictions and the success of Expo 2020, according to global real estate consultancy Knight Frank. Prime residential prices – encompassing the Palm Jumeirah, Emirates Hills and Jumeirah Bay Island – in particular saw a huge surge, rising by 58.9%.
Overall, house prices in the city grew by 10.6% last year and rose by a further 2.6% during the first three months of 2022. The latest increase leaves values 11.3% higher than Q1 2021; the highest rate of annual growth since January 2015.
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Faisal Durrani, partner – Head of Middle East Research, Knight Frank, put this down to “positive market sentiment, driven by the government’s world-leading response to the pandemic, coupled with the successful hosting of the World Expo, the reopening of travel corridors and Dubai’s global safe-haven status continues to underpin the market’s rebound.”
Data revealed that Palm Jumeirah – a series of artificial archipelagos where overall prices increased by 38.6% – registered villa price growth of 10.9% during Q1 alone, with the priciest villa ever sold in Dubai transacting on the iconic island during March for a record AED 280 million.
Similarly, in the exclusive Emirates Hills – a prestigious gated community made up of around 600 villas and home to mostly high-net-worth individual (UNHWI) from the Indian subcontinent as well as Iran and Western Europe – the rate of annual villa price growth stood at almost 20% at the end of Q1. The period between January and March registered a price rise of 6.5%.
The two areas “continue to cement their iconic status, with global buyers continuing to jostle for an address in Dubai’s most exclusive enclaves,” said Durrani.
The market also saw a record breaking 93 ‘ultra-prime home’ sales in 2021 – these are homes priced at over US$10 million. In the first quarter of 2022, Knight Frank has already recorded another 32 ultra-prime deals.