Buyers still want a slice of the palm, even though villa prices have risen by 146% since January 2020
Dubai real estate market: While rental prices in Dubai are stabilizing, a completely different trend can be observed in property sales values. Over the past year, the average value of residential real estate transactions has increased by 17 percent, with a remarkable 5 percent increase in the April to June period alone, according to Knight Frank, a well-known consulting firm.
For those considering buying luxury real estate, Dubai’s most exclusive neighborhoods have seen a staggering 125 percent increase in asking prices since January 2020.
However, expectations of a weakening of this upward trend appear to be unfounded. Faisal Durrani, Head of Research for the Middle East and Africa at Knight Frank, comments: “The current scenario suggests that the ongoing price rise shows no sign of slowing. If anything, the market dynamics point to a further escalation, especially for villas due to the imbalance between supply and demand.”
In sought-after areas such as Jumeirah Bay Island, Emirates Hills and Palm Jumeirah, for example, villa prices rose by 11.6 percent in the second quarter of 2013, marking a staggering 125 percent increase since January 2020. Durrani emphasized: “In addition, there are currently only 8 villas under construction in these neighborhoods.”
This situation could prompt potential buyers to explore other upmarket locations in Dubai, with Dubai Hills continuing to attract a lot of attention. The “island” projects in Tilal Al Ghaf supported by Majid Al Futtaim are also worth considering. Another promising option is Emaar’s newly launched residential complex “The Oasis”.
Jamal emphasized: “This points to continued upward pressure on prices, especially as the population recently passed the 3.5 million mark. However, this perspective remains static and could change in response to further project announcements.”
Around 40,000 new residential units are expected to be completed this year, contributing to the development of the real estate sector in Dubai.
