Will property value increases at Dubai’s Jumeirah Bay Island, Emirates Hills, and Palm Jumeirah soar by 100% in a year? With market sources mentioning a few probable acquisitions that could boost values at these three ultra-prime locations in the city, that seems like a very real possibility.
These sites appear to have done well in the year that ended in September, having grown by 88.8%. And a 29% value increase since July, as wealthy people from the UAE and elsewhere rush to get what they think is a good offer. The most expensive transaction in Dubai’s freehold sector recently occurred at a villa on Palm that sold for Dh302.5 million.
In fact, the value of the Palm has increased by more than 100% since the pandemic began in 2020, according to the consultancy Knight Frank. Sales of homes worth $10 million, or what the consultant refers to as “ultra-prime homes,” have already reached a new high.
“The first nine months of the year have registered 152 ultra-prime sales, eclipsing last year’s all time high of 93,” said Faisal Durrani, Partner – Head of Middle East Research. “And 93 of these deals have taken place in Q3-2022 alone.”
Other information indicates that, in the year to far, 16 sales resulted in the seller earning more than Dh100 million.
“Prime residential values in Dubai continue to strengthen, fueled by a persistent deluge of UHNWI individuals who are zeroing in on Dubai’s premier districts, in search of second homes,” said Durrani. “This trend marks a significant departure to the emirate’s two previous market cycles, where the overriding flavor of buyers was linked to buy-to-let or buy-to-flip purchases.
Still price favorable
And yet these locations offer relative bargains compared to peers elsewhere. “At around Dh3,200 per square foot, or about $870, Dubai’s prime residential neighborhoods remain amongst the most affordable in the world,” said Andrew Cummings, Partner – Head of Prime Residential at Knight Frank. “This, combined with the high quality of residential product now available in the upper echelons of the market, is cementing Dubai’s position as one of the world’s leading second homes markets.”