Values For Residential Properties Are Now A Whopping DH 1100 Per Square Foot.
Dubai’s property price growth is going to slow down, but that still follows a spike of 10.1 percent between April and June. In such a way that compared to an average of Dh800–Dh900 PSF a year ago. The average sale price has surged to almost Dh1100 today. With estate brokers claiming that demand for homes priced at Dh40 million and higher has not abated. Villa values remain in the “red-hot” category, up 19.3% from where they were a year ago.
According to Faisal Durrani, Partner, Director of Middle East Research at Knight Frank, “Palm Jumeirah villa prices have risen by 51% in the previous 12 months and by 68% since the start of the pandemic, indicating the great depth of demand for the city’s top properties.” “District One & Dubai Hills Estate prices for villas have increased by an astonishing 30 % over the same time, not to be outdone.”
According to Knight Frank, the average price of a home in Dubai will grow by 5-7% by the end of 2022 compared to last December. While prime homes may see increases of “near to 15%” during the same period.
Expect further price increases at the Palm because demand far outstrips supply there. As only eight additional residences are anticipated to be finished between 2023 and 2025. The same impact will be noticed at Emirates Hills & Jumeirah Bay Island in addition to the Palm.
According to Durrani, the acute lack of new supply and voracious global demand has caused a remarkable increase in prime residential prices of 70.3% over the past year. With average transaction prices in these upscale neighborhoods of Dh2,900 PSF. Dubai is one of the most ‘cheap’ luxury residential marketplaces in the world. This remarkable growth comes with a caveat, though. It is four times less expensive than upscale areas like New York or London.
A varied group of second-home buyers and investors. Including those from Monaco, Switzerland, India, Austria, mainland China, Singapore, the UK, the US, and the GCC, are now included in sites throughout South America and Eastern Europe.
Luxury Residences Are About To Set A New Record
All indications lead to another record selling of $10 million in Dubai properties a little over halfway through the year. 82 ultra-prime sales, or residences costing more than $10 million, occurred during first 6 months of 2022, according to Durrani. “The market saw 93 ultra-prime transactions last year, setting an all-time high.