Dubai property prices increase, Palm Jumeirah most popular for buyers

Inayat-ur-Rahman, Business Editor

The residential property prices in Dubai continued to increase at a steady pace as the sector recorded 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.

The Insights also noticed an over 8 per cent year-on-year jump and 0.3 per cent month-on-month increase in property prices in April as overseas buyers repose trust in the emirate’s real estate sector following a successful conclusion of Expo 2020 on March 31, 2022.

The 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 Q1, 2022,” according to the Zoom Property Insights.

Ata Shobeiry, CEO of Zoom Property, believes that 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”.

Standing at Dhs 1,630 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 Dhs 1,450, 1,425, and 1,400 per square foot, respectively.

Business Bay with Dhs 1,360 per square foot, MBR City with Dhs 1,300, and Dubai Marina with AED 1,290 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 Dhs 850 per square foot.

Among villa communities, the highest price increase in Q1, 2022 was recorded in Palm Jumeirah. The current average prices of villas here stand at Dhs 3,020. MBR City, Dubai Hills Estate, and Emirates living with Dhs 1,800, AED 1,380, and Dhs 1,270, respectively, also recorded a significant increase in average prices.

Other than that, the premium villa communities, Arabian Ranches 1 with Dhs 1,160 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 Dhs 1,015, Dhs 950, and Dhs 910, respectively.

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

Zoom Property is an emerging property portal in the UAE with a primary focus on Dubai, Abu Dhabi and Sharjah markets. The portal also features international properties in KSA, the UK and other regions on the platform to facilitate buyers and renters. It is also popular among developers, real estate brokerages and property sellers.

Meanwhile, Following a record breaking post-lockdown year in 2021, the real estate market in Dubai continues to perform fantastically well in 2022, especially in the prime and super-prime markets, within which Dubai’s branded residential development sector continues to flourish, as the emirate’s love affair with branded residential real estate continues.

Dean Foley – Head of Residential Project Sales & Marketing at Knight Frank Middle East commented “Residential development across the emirate has flourished since 2010 with the Armani Residences Burj Khalifa first in the market – since then, we have seen an explosion of this asset class with strong demand from HNW and UHNW buyers from across the globe. Such has been the rate of expansion that Dubai is now a global leader rivalling Miami and New York for completed and pipeline projects. Over the last 12 months, we’ve seen launches from Four Seasons, The Ritz-Carlton, St. Regis, W and Six Senses, cementing Dubai’s popularity and boosting confidence with hotel operators, developers, owners and buyers.