Dubai Prime Areas in Higher Demand With Property Prices Up 90%

Luxury Properties for sale in Dubai

Dubai real estate remains a highly attractive investment sector for foreign investors. The charm was further fuelled following the introduction of the 10 year Golden Visa on an investment of AED 2 million. And the first eight months of 2022, Dubai real estate sector broke new records in terms of sales volume and value.

August 2022 – Highest grossing month in a decade

Dubai real estate is a viable investment sector and an incredible growth in demand for properties for sale in Dubai has been observed. In H1, June 2022 was the highest grossing month in the last 13 years for Dubai real estate sector and now August has crowned to be the highest grossing month in a decade.

According to the latest report by the Dubai Land Department (DLD), Dubai real estate sector showed its highest monthly performance in a decade this August. With 9,720 sales transactions recorded in August 2022, the combined value of these sales was AED24.34 billion – which was an increase of 69.57 per cent, compared to the value of August 2021.

In the secondary real estate market, the total transactions for August were over 54 per cent in volume and around 65 per cent up in value. When it comes to off plan property sales, figures in August were higher by 72.10 per cent in terms of volume, and 76.50 per cent in terms of value, compared to August 2021.

Prime communities in Dubai in higher demand

Emaar BEachfront Properties for sale in Dubai

The demand for luxury properties for sale in Dubai has tremendously increased over the past 12 months and so are the prices. The prices of luxury properties at several prime locations in Dubai have shot up over the past year, with values increasing as much as around 90 per cent. Knight Frank, a property consulting firm in Dubai, confirmed the spike of 88.8 per cent for Dubai luxury properties.

“Prime residential values in Dubai continue to strengthen, growing by 29 per cent in Q3 alone, fuelled by a persistent deluge of UHNWI individuals who are zeroing in on Dubai’s premier districts, in search of second homes. This trend marks a significant departure to the emirate’s two previous market cycles, where the overriding flavour of buyers was linked to buy-to-let or buy-to-flip purchases,” Faisal Durrani, Knight Frank partner and head of Middle East research said.

Dubai in dearth of prime properties options

It was stated by several property agents in Dubai that all luxury, high-end apartments delivered by Dubai’s major developers have been sold out since 2021 – followed by an influx of high-net-worth individuals in the city.

Many high-end developments debuted in Dubai during the first half of 2022 to overcome the shortage of prime properties. It is also noticed that several developers are scrambling to address the shortage of high-end properties in Dubai with projects including AVA at Palm Jumeirah, ORLA at Palm Jumeirah – Dorchester Collection by OMNIYAT, Elysian Mansions, and Six Senses Residences, Palm.

Price comparison for prime areas in Dubai

Properties in Dubai

In some prime areas of Dubai such as Palm Jumeirah, prices of luxury properties for sale in Dubai have increased over 100 per cent as compared to the beginning of the global pandemic. A sheer spike in the demand and sale of ultra-luxury properties (properties priced at over $10 million) was also observed.

Around 152 ultra-luxury properties are registered so far in 2022, eclipsing 93 properties sold in 2021. Out of these 152 property deals, 93 took place in the third quarter of 2022.

“The bulk of international buyers are being drawn to Dubai’s unrivalled sun-sea-sand lifestyle, which tends to come with villa purchases, and this is where demand continues to intensify. Indeed, the city just set a new record price, with the sale of an $82 million home on the Palm Jumeirah,” Andrew Cummings, Knight Frank partner and head of prime residential said.

Luxury properties in Dubai – A striking investment option

The demand for luxury properties for sale in Dubai has been on the rise since the second half of 2021, when the UAE government lifted the ban on international travelling and high-net-worth-individuals started travelling to Dubai. Several other reasons are also important factor such as the strong momentum of the market and the prices of luxury properties in Dubai are still less compared to several other established markets.

Another strong reason for higher demand is that there is a limited stock of prime and ultra-luxury properties, which is not enough to cater to the rising demand of potential local and foreign investors.

“At around AED3,200 per square foot, or about $870 per sq. ft. Dubai’s Prime residential neighbourhoods remain amongst the most affordable in the world. This, combined with the high quality of residential products now available in the upper echelons of the market, is cementing Dubai’s position as one of the world’s leading second homes markets,” Andrew stated further.

Price trend for luxury properties in Dubai

Property Agents in Dubai

According to the report by Knight Frank, we can expect demand to continue increasing for luxury properties for sale in Dubai, with prices also increasing 5-7 per cent by the end of 2022. By the end of this year, the prices for prime properties in Dubai are likely to increase around 60-80 per cent higher than in 2021.

It is because the property prices on Palm Jumeirah have already increased 101 per cent, while prices on Jumeirah Bay Island have increased 98 per cent.

“With increasing global economic uncertainty, Dubai is once again emerging as a safe port in the storm. The unrelenting demand from international UHNWI when combined with the shortage of waterfront homes, the government’s world-leading response to the pandemic, positive business sentiment, one of the most business-friendly environments anywhere and arguably some of the globe’s best beachfront real estate is what underpins our outlook,” Durrani explained.

If you are planning to invest in luxury properties in Dubai, anywhere in one of the prime areas – you must get in touch with the HFRE sales experts. You can contact us at +971 4876 2473 or can also write us at, where you can discuss your investment plan and chosen areas even. We assure to get back to you as soon as possible with not just hand-picked prime property options but with a bespoke investment plan, as well.

Compare listings


Request call back

Fill in your information below to schedule a call back!