Palm Jumeirah, Emirates Hills and Jumeirah Bay Island are gaining all the interest with over 88.8% rise in last 12 months According to the latest report by Knight Frank, the residential value is strengthening.
Dubai is gaining the confidence of investors. People from different places are coming here for investment and this has led to outstanding growth. All the prime residential areas of Dubai are roaring with customers' interest soaring.Dubai’s three preeminent residential areas including Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island have witnessed phenomenal transactions and a surge in demand for housing.
Faisal Durrani, partner – head of Middle East Research, said:
“Prime residential values in Dubai continue to strengthen, growing by 29% 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 from the emirate’s two previous market cycles, where the overriding flavor of buyers was linked to buy-to-let or buy-to-flip purchases.
“This insatiable demand has fuelled villa price rises of over 100% in locations such as Palm Jumeirah since the start of the pandemic. Elsewhere, ultra-Prime homes sales, i.e., homes priced at over US$ 10 million have also hit a fresh high. The first nine months of the year have registered 152 ultra-Prime sales, eclipsing last year’s all-time high of 93. And in fact, 93 of these deals have taken place in Q3 alone.”
Andrew Cummings, partner – head of Prime Residential, added:
“The bulk of international buyers are being drawn to Dubai’s unrivaled 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 US$ 82 million home in Palm Jumeirah.
“At around AED 3,200 per square foot or about US$ 870 per square foot, Dubai’s Prime residential neighborhoods 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.”
Luxury homes are witnessing a shortage with the sea change entering the market. More homes are being prepared even much higher than the market capacity, in short demand is not meeting the number of new homes and this is failing in market capacity. It has been mixed demand with the shortage of waterfront homes and the oversupply of villas.
Looking at the uncertainty in the market, forecasting in Dubai is difficult but still with the customer’s interest and the price growth 5-7% increase is expected by the end of this year. Prime Dubai areas are witnessing 60-80% higher prices than what was in 2021.
