Property values in Dubai's Palm Jumeirah, Emirates Hills and Jumeirah Bay Island to increase by 100% in 12 months?
On the face of it, these places performed well in the 12 months to the end of September, rising by 88.8%.
Values increased by 29% from July as wealthy individuals from the UAE and abroad continued to snap up to secure favorable deals.
The Palm just recorded a Dh302.5 million villa sale, making it the most expensive deal for permanent property space in Dubai.
In fact, according to the data, the value of The Palm has soared by more than 100% since the 2020 epidemic.
Homes worth $10 million are defined as ultra-high-end residences. Sales have set new records.
In the first nine months of this year, 152 superlatives have been registered, surpassing last year's record of 93. Of those transactions, 93 closed in 2022 in the third quarter alone.
So far this year, 16 deals have netted sellers more than Dh100 million.
The value of premium housing in Dubai continues to increase, driven by the continued presence of ultra-high net worth individuals who are looking for a second home in the city's prime locations.
This trend marks a significant departure from the emirate's two previous market cycles, in which the primary tastes of buyers were associated with either buy-to-let or buy-to-flip.
Currently, the average price of The Palm Jumeirah is Dh3,054 per square foot, compared to Dh5,220 for Emirates Hills and Dh6,345 for Jumeirah Bay Island, where new construction is very limited.
Since the start of the Covid-comeback cycle two and a half years ago, Palm Jumeirah has seen a 101% increase in value, Jumeirah Bay has seen a 98% increase in value, and Emirates Hills has almost doubled in price over the same period.
However, prices in these locations are relatively low compared to their counterparts elsewhere.
At around Dhs3,200 per square foot, or about $870, Dubai's prime residential areas remain among the most affordable in the world.
This, coupled with the current high quality residential offerings at the top end of the market, is cementing Dubai's position as one of the world's leading second home markets.
Developers are not rushing to bring new projects to market to capitalize on the demand for luxury homes as they have in the past.
By the end of 2025, Dubai's real estate market could see another 81,000 new homes on Jumeirah Bay Island.
