Dubai’s Prime House Values Jump 59% in 12 Months

dubai properties for sale

Dubai properties for sale have shown resilience and made a strong recovery from the global pandemic-led market slow down – soon after the country started improving. The UAE government has adopted many measures and introduced reforms to set the country on the path of retrieval. For instance, the government has recently announced an overhaul of the UAE residence visa programme. The new visa regimes are expected to bring a significant influx of potential buyers to the Dubai real estate market. 

Spike in demand for luxury Dubai properties for sale 

And out of all available real estate investment options, the luxury property sector has witnessed strong interest from both local and overseas investors. Thanks to the market revival and this spike, which has led to a significant price rise for the Dubai prime properties. 

According to Knight Frank, the prices of prime Dubai properties for sale recorded a jump of almost 60 per cent – over the past 12 months, driven by burgeoning interest from foreign investors. A majority of real estate experts denote this boom to the successful vaccination drive against coronavirus, which allowed the UAE government to conduct the global event of Expo 2020 and to cater to hundreds and thousands of international travellers. 

Record increase is witnessed in Dubai property prices

Residential property prices increased by 10.6 per cent in 2021 and further rose by 2.6 per cent during the first quarter of 2022. If these property prices are compared to Q1 2021, the property values are 11.3 per cent higher; this is the highest annual growth since January 2015. 

dubai properties for sale

According to the Dubai Land Department (DLD) statistics, the luxury property prices in Dubai have tripped by six per cent in Q1 2022. The price of average prime properties is AED4.5 million. When it comes to volume, Dubai’s prime property segment experienced a minimal surge of 1.03 per cent in Q1 2022 at a total of AED17.28 billion compared to the previous quarter.

The Dubai Land Department (DLD) recorded the transactions of around 52,000 apartments and villas – totalling AED114.2 billion, which is more than the combined total of 2019 and 2020.

However, if the values are compared to the peak of 2014, these are still around 25 per cent below. During and after the pandemic, the villa segment has shown tremendous growth and is now just around 13 per cent below the last high in the market in 2014.

“The rebound of Dubai real estate sector is driven by the immediate measures and quick response planned by the UAE government to curb the spread of coronavirus. It allows the authorities to successfully host the global event of Expo 2020, which opened the further avenues and travel corridors – coupled with 100% business ownership initiative and amendments in Golden Visa programme,” says Muhammad Ali Mustafa – Director and Co-Founder of HFRE.

These all factors have led the potential property buyers and investors to trust the market again and buy properties in Dubai

Prime areas to invest in Dubai properties

Prime areas where investors have shown utmost interest in Dubai properties for sale include Palm Jumeirah, Dubai Creek Harbour, Emirates Hills, Dubai Marina, Business Bay, and Downtown Dubai, to name a few. 

areas to invest in properties in Dubai

Dubai Creek Harbour, Palm Jumeirah, and Emirates Hills are some of the most sought-after or, let’s say, most exclusive areas in Dubai that continue to attract global buyers to buy properties there. 

The villa price growth in Palm Jumeirah was recorded at close to 11 per cent during the first quarter of 2022 and more than 38 per cent over the past 12 months. Recently, this area has created headlines with the most expensive villa deal at an eye-watering price tag of AED 280 million.

Since the pandemic, the demand for villas in Dubai has been increasing, and the high net worth individuals continue to hunt for Dubai’s ultra-luxury homes. The second most expensive villa in Dubai is located on Jumeirah Bay Island and is sold for AED88.2 million, while another villa in Palm Jumeirah is sold for AED87 million.

The villa prices rose by 6.5 per cent in Emirates Hills in the first quarter of 2022 and by 20 per cent in the past 12 months.

According to recent research by Knight Frank, “there were a record-breaking 93 ultra-prime home sales in 2021 — these are homes priced at over $10 million. During Q1, we’ve recorded another 32 ultra-prime deals, exceeding the second-best annual total set in 2015.”

Backed by high capital appreciation and stable rental returns, Dubai properties for sale continue to be an attractive investment option for both local and foreign investors. According to the Mo’asher, Dubai’s official sales and rental performance index that was launched by the Dubai Land Department, they got a total of 25,972 real estate transactions recorded in Q1 2022. These numbers show that Q1 2022 has recorded the highest number of transactions since 2010 in a single quarter.

Conclusion

Dubai Real Estate

Knight Frank forecasts the supply of another 100,000 residential units to the Dubai property market by the end of 2025. Out of this hefty supply, only 25 per cent of the total residential units are villas. More than 50,000 apartments and villas are due to be completed in 2022. 

“Through to the end of 2025, just eight new villas are expected to be built in Dubai’s prime residential areas, hinting strongly at continued outperformance of villas at the very top of the market as there is nothing to suggest an easing of the luxury home drought any time soon,” said Mr Faisal Durrani, partner — head of Middle East research, at Knight Frank.

Chat With An Expert

 

It seems to be the best time to invest in Dubai properties for sale, and what better you can get than working with the HFRE professionals. Pick your phone and drop us a call at +971 4876 2473 or write us at info@hfre.ae to discuss your investment plans. We will suggest to you the best performing areas and high yield properties in Dubai help you make the most of your investment.

Join The Discussion

Compare listings

Compare