Three of Dubai’s residential locations close to hitting 100% value gain in 12 months – Palm is one
In Dubai, Palm property values are truly reaching for the skies. How much further can they rise as more Dh100 million plus homes are sought by the rich?
Dubai: Will property value gains at Dubai’s Palm Jumeirah, Emirates Hills and Jumeira Bay Island zoom up 100 per cent in 12 months? That looks quite a distinct possibility, with market sources talking about a handful of potential deals that could nudge values at these three super-prime spots in the city.
By the looks of it, these locations have already done well in the 12 months to end September, having put on 88.8 per cent. And 29 per cent value gain from July, as the rush continues among the rich – from the UAE and outside – to secure what they would deem as a favourable deal. Palm has just recorded a Dh302.5 million villa sale, easily the priciest transaction in Dubai’s freehold space.
In fact, according to the conultancy Knight Frank, the Palm has already seen values spike more than 100 per cent since the start of the pandemic in 2020. Sales of $10 million homes – which the consultancy defines as ‘ultra-prime homes’ – are already at a new record.
“The first nine months of the year have registered 152 ultra-prime sales, eclipsing last year’s all time high of 93,” said Faisal Durrani, Partner – Head of Middle East Research. “And 93 of these deals have taken place in Q3-2022 alone.”
According to other data, there were 16 transactions that led to the seller netting more than Dh100 million in the year-to-date.
“Prime residential values in Dubai continue to strengthen, fuelled by a persistent deluge of UHNWI individuals who are zeroing in on Dubai’s premier districts, in search of second homes,” said Durrani. “This trend marks a significant departure to the emirate’s two previous market cycles, where the overriding flavour of buyers was linked to buy-to-let or buy-to-flip purchases.
