Demand for premium properties has increased in the last few months in Dubai, with multiple luxury homes sold in just a few months in some of the prime areas in the city, as per the latest analysis by Property Monitor.
And talking about this year, 81 villas on The Palm Jumeirah alone, each worth more than 10 million dirhams ($2.7 million), were snapped up by homebuyers, outperforming the whole of previous year’s premium villa deals on the island, Property Monitor provided in its report on Wednesday.
In 2020, only 54 villas were sold on the world’s biggest man-made island.
Last April, a property on the island valued 111.25 million dirhams was sold, resulting in Dubai’s second-highest residential deal ever. In another record-breaking sale during the same month, a buyer owned Villa 02 at XXII Carat (Club Villas) on the West Crescent of Palm Jumeirah for 105 million dirhams, the third-most-expensive residential property deal in Dubai.
At Emirates Hills, Villa R-66 was sold for 72.4 million dirhams, the 4th most expensive deal in the area and also the highest since September 2018.
Altogether, the month of April reported 90 deals containing properties worth more than 10 million dirhams, up by 6.7% in comparison to March, as per the Property Monitor.
Price increases
Due to strong demand, property costs in Dubai consistently recovered and moved by 9.5% in the last six months, Property Monitor said.
During April, costs increased by 2.5% to average about 895 dirhams (243.67) per square foot. The rate of increment was the highest reported in a single month since March 2014.
“Even after considering the declines seen during the early months of 2020, prices are now higher than a year ago and the strong recovery shows little sign of abating,” the report said.