Palm Jumeirah, Downtown top choice for buyers in Dubai as prices surge

The Palm Jumeirah remained the most sought-after destination with nearly 30 per cent year-on-year increase in prices during the first quarter of 2022.

Average property rates in Dubai rose more than eight per cent in April as overseas buyers reposed trust in the emirate’s real estate sector as sweeping visa reforms, investor-friendly initiatives, high liquidity, low rates and open-arm approach continued to attract overseas property buyers, according to a property portal.

Palm Jumeirah remains the most popular area for villa buyers and Downtown Dubai appears the most sought-after location for apartments as the residential property prices in the emirate continued to increase at a steady pace with the sector recording a year-on-year average increase of around 11.5 per cent in first quarter this year due to rising demand from foreign investors and end-users, according to the Zoom Property Insights.

Ata Shobeiry, CEO of Zoom Property, said the Dubai property market will continue its upward trajectory during 2022 and beyond because of its visa reforms and open-arm approach to foreign investors.

“The steady monthly growth will accelerate as new developments are announced by top developers, designed to attract investors and end-users alike. The support from the government in terms of reformed visa policies will also facilitate the influx of overseas investors and buyers. This will ultimately impact not only the property market but the overall economy of the country.”

Knight Frank’s analysis shows that prices of prime residential properties in Dubai recorded an almost 60 per cent jump over the past 12 months, underscoring the rebound of the property market boom triggered by the return of investors and international buyers.

House prices in Dubai grew by 10.6 per cent in 2021 and rose by a further 2.6 per cent during the first three months of 2022. The latest increase leaves values 11.3 per cent higher than Q1 2021; the highest rate of annual growth since January 2015.

According to another report by Knight Frank, Dubai’s prime and super-prime real estate markets continue to flourish, rivalling Miami and New York, according to Knight Frank Middle East.

“For the global elite, branded residences provide large and opulently serviced homes under the strength and expert care of a leading luxury brand, in addition, the UAE Government acted with laser-guided efficiency to ensure disruption was kept to a minimum, its population vaccinated, and its economy open for business – these three pillars are what’s largely driven the branded real estate landscape over the last 12 months,”

According to Zoom Property Insights, Dubai’s villa sector continued its dominance as several key areas, including Arabian Ranches, Jumeirah Islands, The Lakes, JVC, and Palm Jumeirah saw a major increase in prices during Q1.

Apartment locations also noticed a similar trend, but the overall price growth is yet to hit the double-digit mark. Some prominent areas, including Palm Jumeirah, Downtown Dubai, JBR and The Views remained in demand.

“The Palm Jumeirah remained the most sought-after destination with nearly 30 per cent year-on-year increase in prices during the first quarter of 2022,”

At Dh1,630 per square foot, Downtown Dubai recorded the highest price increase during the first quarter in the apartment sector. It was followed by JBR, Palm Jumeirah, and Dubai Hills Estate, as properties here cost Dh1,450, 1,425, and 1,400 per square foot, respectively.

Business Bay with Dh1,360 per square foot, MBR City with Dh1,300, and Dubai Marina with Dh1,290 per square foot are other popular communities that witnessed an increase in the prices of apartments. Property price in neighbouring areas, JVC and JVT, is around Dh850 per square foot.

Among villa communities, the highest price increase in January-March 2022 quarter was recorded in Palm Jumeirah. The current average prices of villas here stand at Dh3,020. Prices in MBR City, Dubai Hills Estate, and Emirates Living are at Dh1,800, Dh1,380, and Dh1,270, respectively, also recording a significant increase in average prices.

The premium villa communities, Arabian Ranches 1 with Dh1,160 per square foot and Arabian Ranches 2 with 1,015 per square foot, remained popular with buyers and investors. Villa prices per square foot in Mudon, JVT, and The Villa rose to Dh1,015, Dh950, and Dh910, respectively.

The upswing in the Dubai property market can be attributed to high liquidity, low-interest rates, and rising migration to the UAE following the successful handling of the Covid-19 pandemic and the introduction of visa and business reforms, said Shobeiry.

“Since the international borders are open after the pandemic, Dubai has seen more expats move to its shores for safety reasons, tax efficiency, lifestyle quality and a supportive business environment. Dubai opened its arms and welcomed people and businesses from across the world because of its friendly environment and consistent policies,”

News Source: Khaleej Times