Prices Of High-End Housing in Dubai Skyrocket by Nearly 70 Percent
If you are thinking about investing in the high-end housing properties in Dubai’s luxury property market this year, be prepared for capital growth that set all-time records.
Since the onset of the Covid-19 pandemic, residential values across ultra-prime neighborhoods in Dubai have increased by approximately 70 percent. There has been continued growth in the value of the real estate in ultra-prime neighborhoods of Dubai in the second quarter. There has also been an increase of 68 percent in the price of villas on the Palm Jumeirah as compared to 2020. The price of villas in Dubai Hills Estate and District One has also gone up by 30 percent in the past 12 months. High-end properties in most exclusive neighborhoods of Dubai continue to grow in value, which is benefiting entire markets in UAE.
As property demand in UAE continues to rise despite the global economic growth slowing down due to the pandemic-fueled boom, valuators and sellers anticipate an upward trend in the market. In addition, visa reforms as well as the role of property as an inflation hedge are helping UAE demand.
The reason for the increase is possibly due to a combination of strong demand and limited supply. There has been an approximate 70.3 percent increase in prime residential property in Dubai prices due to the severe shortage of new supply and insatiable international demand in the last 12 months.
As of mid-year, around 82 ultra-prime deals had been closed – along with homes worth over $10 million. The Dubai Land Department estimates that between 2023 and 2025, only eight new homes will be delivered across Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island in Dubai. Despite this, Dubai remains one of the most affordable luxury real estate markets worldwide. The price of apartments in Dubai is four times lower than in New York or London.
In the past year, 93 ultra-prime sales were recorded, an all-time high. Approximately 40 percent of all ultra-prime home sales in Dubai took place in 2021. An average price of AED1,100 per square foot is now being charged in the emirate, up 10.1 percent from last summer. 2022 is even expected to surpass this by a significant margin.
Property consultants in Dubai predict the price rise to continue through the end of the year by as much as 7 percent more. Prime neighborhoods in Dubai may see prices increase by 15 percent in the coming days. It was not just prime areas that saw price increases, but the entire residential property market in Dubai.