Prices of Dubai’s property grew at one of the fastest rates globally. The prime reason for this fast rate is the high demand for prime residences among foreign investors or homebuyers.
According to the property consultancy, Knight Frank report: Dubai’s prime residential market, includes Palm Jumeirah, Jumeirah Bay Island, and Emirates Hills, which saw prices grow by more than 26 percent per year.
There were recorded 105 sales of homes priced more than $10 million during the first three months of the year, up 19 percent from the same period last year. In the quarter, Palm Jumeirah accounted for just over a third of all transactions.
Partner and head of Middle East Research at Knight Frank, Faisal Durrani stated:
“ After growing by 16.3 percent in 2023, following an extraordinary 44.4 percent increase during 2022, Dubai’s prime residential market has grown by 26.3 percent over the last 12 months, easily making it one of, if not the fastest, growing prime residential market globally.”
Total value of $10 million – plus homes sold in Dubai in Q1 2024:
- Palm Jumeirah: $ 628,439,857
- Jumeirah Bay Island: $ 191,498,638
- Dubai Hills Estate: $ 120,980,926
- Al Wasl: $ 111,989,101
- Palm Jebel Ali: $ 110,105,722
- District One (MBR City): $ 97,002,725
- Tilal Al Ghaf: $ 94,900,777
- Business Bay: $ 84,161,928
- Emirates Hills: $ 56,344,687
- Downtown Dubai: $ 52,928,024
- Al Quoz Second: $ 50,307,902
- Palm Deira: $ 45,516,621
- Al Jadaf: $ 23,705,722
- World Islands: $ 21,525,886
(Sources for data: Knight Frank)
Knight Frank’s report in January found that Dubai’s luxury home market reached a record level in 2023. With sales of $10 million – plus homes nearly doubling to $7.6 billion and outstripping London and New York.
Mr Faisal Durrani, said:
“The level of deal activity in Dubai continues to strengthen, particularly at the top end of the market, where the near-constant stream of international high-net-worth individuals vying for the city’s most expensive homes persists.”
He also stated that:
“The laser-like focus on the global wealthy in Dubai is best reflected in the rapid deterioration in the volume of $ 10 million – plus homes for sale, which has fallen by 59 percent across the city over the last 12 months to just 864 homes.”
Despite higher prices, Dubai luxury home prices are the most affordable prices in the world. In this regard, Mr. Faisal Durrani said:
“Indeed $1 million secures some 980 square feet of prime residential building in Dubai, compared to just 366 square feet in New York, 355 square feet in London, or 172 square feet in Morocco.
The most popular area in dominating sales in the first quarter of the year is Palm Jumeirah, which contributed 36.3 percent of sales by total value. The next most popular areas are Jumeirah Bay Island and Dubai Hills Estate.
Prime Reasons Why Dubai Property Prices Are Skyrocketing
Strategic Location Of The City
Dubai’s prime location at the crossroads of Europe, Asia, and Africa transformed it into a global hub for business, tourism, and the home of top strategies to boost your business. It is a source of connectivity between the different countries and its modern infrastructure attracts most of the potential investors who are looking for lucrative investment opportunities.
Availability Of Move-In-Ready Properties
The demand for ready-to-move properties is always high and has a positive impact on overall real estate market performance. The investors prefer and seek ready-to-move properties as these properties save time and reduce effort. So, Dubai’s real estate market ensures the availability of move-in-ready properties and uses different strategies and policies to fulfill the demand for such properties. As a result, these properties attract investors and drive-up property prices.
Updated Residency Programs In Dubai
The government of UAE has announced various residency programs and extended the time duration: Freelance, Retirement, and Golden visa. These programs are the major factor in increasing the real estate demand. The investors avail benefits from these policies and strategically plan their investment in Dubai to get more profits. Such long-term residence programs facilitate investors and make Dubai a favorite and desirable tourist destination and tourism in any country increases the demand for real estate.
High Standards And State-Of-The-Art Amenities
Dubai is a globally renowned city as it offers an ultra-luxurious lifestyle and ensures the availability of state-of-the-art amenities. The high standards of living in Dubai compete with the standards of European cities including New York, London, and Morocco.
Unique infrastructure, use of modern technology, modern architectural designs, sustainability, low environmental effect, superior interiors and exteriors of the building, and many more top-notch facilities at the doorstep play an essential role in maintaining the high standards of living in the city.
Many reputed developers such as Emaar, Damac, Select Group, Nakheel, and Meraas contributed a lot in developing ultra-luxurious communities in Dubai. All these factors. All these factors increase the demand for properties in Dubai’s real estate market.
Potential Future Growth
Knight Frank predicts that Dubai’s prime market will see a more moderate increase of 5 percent this year, while the overall market is expected to grow by 3.5 percent.
Mr. Faisal Durrani said:
“Our forecasts are not without risk”. Moreover, he said:
“A global economic slowdown and the knock-on impact on the local economy, combined with the risk of an escalation in regional tensions are medium to high risks, with the latter potentially emerging as a key trigger for higher oil prices.”
Managing Director of Espace Real Estate, John Lyons stated that:
“The demand for luxury real estate in Dubai is high and rising.” “As developers increasingly build new supply to satisfy this demand, Dubai will further cement its position as a major destination for the global elite.
Final Verdict
Dubai’s real estate market is expected to grow in 2024, due to many factors including sustained demand, foreign money inflows, and government efforts. This growth is expected to create opportunities for investors, developers, and other industry players. The city is well-positioned to take advantage of the global luxury real estate market and increase its share of the global luxury real estate market.
To learn more about Dubai’s real estate visit ERE Homes
