UAE’s two largest cities, Dubai and Abu Dhabi have seen residential property values expand at the fastest pace since 2015, respectively, according to Knight Frank’s third-quarter preliminary data.
“The market is roaring back to life. The emerging euphoria around the fact that the UAE has the pandemic so well and truly under control, coupled with the excitement around the much-anticipated World Expo are adding to the confidence that is taking hold in the residential market,” said Faisal Durrani, Partner – Head of Middle East Research.
A decisive and rapid response by the UAE to the pandemic has caught the attention of the world’s rich, who are flocking to Dubai, buying up the most expensive homes in locations such as Dubai Bay and Palm Jumeirah. Knight Frank claims this has contributed significantly to rising villa values.
“Villa prices in Dubai are provisionally up by 5 percent in Q3 and nearly 17 percent higher than they were at this time last year. Indeed, the number of $10m plus homes sold currently stands at 54, smashing the previous record of 31, set back in 2015 – and there’s still three months left to run this year. Unsurprisingly, the Palm Jumeirah and Emirates Hills account for almost 75 percent of super-prime home sales in the city, but we are witnessing new Dubai submarkets such as Business Bay join the exclusive list of $ 10m plus locations,” said Durrani.
“It was only a matter of time before the ‘halo-effect’ from Downtown Dubai spilled over to surrounding markets, highlighting that not only is Dubai’s super-prime market expanding, but it is also maturing.”
The Abu Dhabi economy is returning to profit
The value of residential properties in Abu Dhabi is also surging, with residential property values overall seeing strong increases on a year-over-year basis for the second consecutive quarter, according to Knight Frank.
As of January 2012, Emirati capital’s residential values were up 2% from a year earlier, with villas seeing a stronger growth (3.1%) than apartments (1.8%).
“As has been the case throughout the pandemic, existing and aspiring homeowners have their eyes firmly set on larger homes, whether for more room for a home office, or access to extra space, indoors, or outdoors. It really is a case of bigger is better, as has been reflected in recent rapid off-plan villa sales projects in Abu Dhabi, such as Aldar’s 480-villa Noya Viva development on Yas Island, which sold out in 48 hours in April, or the more recent swift sale of all 83 villas at Saadiyat Reserve the Dunes”, said Durrani.