Jumeirah Bay And Emirates Hills Are Two Additional Prime Areas Where Values Are Zoomed In.
Will property values at Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island increase by 100%? Market sources mention a few potential acquisitions that might raise values at these three citywide ultra-prime locations. That seems like a very real possibility. With a growth of 88.8% in the year that ended in September, these developments seem to have done well. In addition, a 29% value increase since July. As wealthy people from the UAE and elsewhere scramble 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.
Value of the Palm has increased by more than 100% since the pandemic began in 2020, as per Knight Frank. The consultant refers to homes worth $10 million as “ultra-prime homes,” and sales of these properties have already surpassed previous records.
According to Faisal Durrani, Partner – Head of Middle East Research, “the first nine months of the year have reported 152 ultra-prime sales. Surpassing previous year’s all-time high of 93.” Moreover, 93 of these transactions happened just in Q3 of 2022. As per other additional data, the seller has earned far more Dh100 million from 16 sales so far this year.
Due to a consistent influx of UHNWI people, Dubai’s “prime residential prices keep rising. Who are focusing on Dubai’s finest districts, in quest of second homes,” said Durrani. “This tendency represents a considerable shift from the emirate’s two prior market cycles. Where the predominant buying preferences were associated with buy-to-let or buy-to-flip transactions.
These Prices Per Square Foot Are Worth A Look
The average price per square foot now is Dh3054 on the Palm Jumeirah, Dh5220 in Emirates Hills, and Dh6345 on Jumeira Bay Island. New construction is now prohibited in these areas.
According to the Knight Frank data, “the Covid-comeback cycle, which started two and a half years ago, has so far seen values soar by 101% on Palm Jumeirah and 98% on Jumeira Bay. While Emirates Hills has experienced a close to doubling in prices over the same period.”
Price Is Still Favorable
Yet, compared to their competitors elsewhere, these places are quite inexpensive. According to Andrew Cummings, at Knight Frank, “Dubai’s prime residential areas remain among the cheapest in the world. At roughly Dh3200 per square foot, or around $870.” This is solidifying Dubai’s status as one of the top second home markets in the world. Along with the high quality residential product that is currently offered in the highest echelons of the market.
There Is a Dearth of Luxury Goods
By the end of 2025, another 81,000 additional residences are projected to enter the Dubai real estate market. Faisal Durrani said, “The city appears well-supplied, but once that number is broken down. We notice that just 8 new villas are due in Dubai’s upscale neighborhoods between 2023 and 2025. And they’re all on Jumeira Bay Island.” Developers have not yet pushed new projects to market as quickly. As we have seen them do in the past to take advantage of the wave of demand for luxury housing.
“The lack of coastal properties is the emirate’s biggest problem. Once the development plans are finalized, the rebirth of Deira Islands as Dubai Islands (by Nakheel) might assist to ease the shortage of ultra-prime residences, however it will probably be a few years before the first homes are available to move into here.