Downtown Dubai

Palm Jumeirah and Downtown Dubai are the Most Popular Places for Price Rises

  • May 22nd, 2022

Average property prices rose by more than 8% in April as foreign purchasers renewed their faith in the emirate’s real estate industry following the successful end of Expo 2020 on March 31, 2022.

According to Zoom Property Insights, residential property prices in Dubai have continued to rise steadily, with the sector seeing a year-on-year average increase of roughly 11.5 per cent in the first quarter of this year due to increased demand from overseas investors and end-users.

According to Insights, the UAE property prices increased by 8% year over year and 0.3% month over month in April, as international buyers reaffirmed their faith in the emirate’s real estate market following the successful conclusion of Expo 2020 on March 31, 2022.

The villa sector maintained its dominance, with significant price increases in several key locations, including Arabian Ranches, Jumeirah Islands, The Lakes, JVC, and Palm Jumeirah.

Apartments have seen a similar trend, but overall price rise has yet to reach double digits. Some popular places have endured, including Palm Jumeirah, Downtown Dubai, JBR, and The Views.

According to Zoom Property Insights, “the Palm Jumeirah remained the most sought-after destination, with roughly a 30% year-on-year increase in prices during Q1, 2022.”

Because of visa changes and an open-arm attitude to international investors, Ata Shobeiry, CEO of Zoom Property, predicts that the Dubai property market will continue to rise until 2022.

“The steady monthly rise will accelerate as leading developers reveal new ventures to attract investors and end-users.” The government’s help in enacting improved visa laws will also encourage the entry of foreign investors and purchasers. It will have an effect not only on the housing market but also on the country’s entire economy.

Dubai’s community demand and prices are increasing.

Downtown Dubai saw the highest price rise in the apartment sector during the first quarter, standing at Dh1,630 per square foot. JBR, Palm Jumeirah, and Dubai Hills Estate were next, with houses costing Dh1,450, Dh 1,425, and Dh1,400 per square foot.

Other famous areas that have seen an uptick in apartment prices include Business Bay (Dh1,360 per square foot), MBR City (Dh1,300), and Dubai Marina (Dh1,290 per square foot).

Property prices in nearby JVC and JVT are roughly Dh850 per square foot.

Palm Jumeirah had the fastest price rise among villa communities in Q1, 2022. The current average price of a villa in Dubai is Dh3,020. Average prices in MBR City, Dubai Hills Estate, and Emirates Living increased by Dh1,800, Dh1,380, and Dh1,270.

Aside from that, purchasers and investors continued to favour the luxury villa developments of Arabian Ranches 1 (Dh1,160 per square foot) and Arabian Ranches 2 (Dh1,015 per square foot).

Mudon, JVT, and The Villa prices per square foot increased to Dh1,015, Dh950, and Dh910, respectively.

Shobeiry credited the Dubai housing market’s rebound to abundant liquidity, cheap interest rates, and migration to the UAE following the effective management of the Covid-19 outbreak and the implementation of visa and business reforms.

“Since international borders reopened during the epidemic, more ex-pats have moved to Dubai for safety, tax efficiency, lifestyle quality, and a helpful business climate. Because of its pleasant climate and consistent policies, Dubai has opened its arms and welcome individuals and businesses worldwide,” he remarked.

Important takeaways

• Dubai property prices continue to grow steadily, with Palm Jumeirah remaining the most popular place for villa purchasers and Downtown Dubai appearing to be the most popular apartment buyers.

• The villa sector dominates the market, with significant figures produced in vital locales. Several apartment complexes have also seen significant expansion.

• The average price per square foot in prominent apartment sites such as Downtown Dubai, JBR, Palm Jumeirah, Dubai Hills Estate, Business Bay, MBR City, Dubai Marina, JLT, JVT, and JVC has grown.

• Palm Jumeirah, MBR City, Dubai Hills Estate, Emirates Living, Arabian Ranches, Arabian Ranches 2, Mudon, JVT, and The Villa have increased their prices per square foot.

• Visa changes, strong liquidity, low rates, and an open-arm attitude entice foreign investors.

Source: Khaleej Times