Palm Jumeirah, a man-made, palm tree-shaped archipelago, is home to Dubai’s finest hotels, pristine beaches and ultra-luxury homes. Palm Jumeirah properties also top the list of most expensive homes, with the highest number of costliest homes sold in Dubai during the first quarter of 2022.
Palm Jumeirah has recently created headlines with the most expensive property deal of a 10 bedroom ultra-luxury villa spanned over 33,000 sq. ft. located on the island’s Frond N., which is sold for a record-breaking price of AED280 million.
The second most expensive place located on Jumeirah Bay Island is sold for AED88.2 million, while another Palm villa is sold for AED87 million. Since the pandemic, the demand for villas has been increasing in Dubai and besides that, shell-and-core units are in particular demand.
According to recent statistics “Shell-and-core villas are among the highest demanded properties which end-users are looking to put their signature on. Second only to off-plan branded residences, which are reselling for highest premiums recorded.”
Besides these luxury villas, branded residences (such as One Palm, Dorchester Collection) are the next highest demand investment options in Dubai real estate market. Not just demand but the spike in price was also observed for these branded residences such as the price tag reached AED6,800 per square foot. With new project launches at the Palm, the asking prices will also be increasing simultaneously – to match the pre-pandemic levels.
Quarterly index prices
In Q1 2022, the overall quarterly index for sales recorded a 1.251-point increase and an index price of AED1,186,002. The apartments quarterly index posted a 1.26-point hike with an AED1,067,385 index price while the villas or townhouses quarterly index registered a 1.234-point rise and an index price of AED2,094,633.
According to the Dubai Land Department (DLD), the average price growth for apartments in Dubai was around 7 per cent, while the villas experienced average price growth of 21 per cent.
That is why, investors with ready-to-move villas are enjoying market conditions, higher prices and higher demand. It will take a year or two before Dubai real estate market reaches the same villa construction level, which gives a bracket to the existing villa owners to enjoy the price hike and demand for new-built villas.
Top areas for luxury villas
For luxury villas, Downtown Dubai, Palm Jumeirah and MBR City are the busiest in terms of transactions in the first quarter of 2022. With Palm Jumeirah and MBR City accounting for AED3 billion plus in deals, The Downtown numbers reached AED2.6 billion.
With more foreign buyers entering into the market and seeing the current sales trends, the real estate experts are predicting another spectacular quarter for the Dubai property market.
If you are planning to be a part of this stellar real estate market, you must contact the team HFRE to guide you through the investment journey. All you need is to contact the sales team at +971 4876 2473 or write us at info@hfre.ae and one of our team members will get back to you with a bespoke investment plan and handpicked properties.
