Dubai: Residential property values in the UAE’s two largest cities, Dubai and Abu Dhabi, have grown at their fastest pace since 2015, according to Knight Frank.
The burgeoning euphoria around the UAE’s mastery of the pandemic, coupled with the excitement over the much-anticipated Expo 2020, is building confidence in the residential market.
– Faisal Durrani, Partner – Head of Middle East research
The UAE’s decisive and swift response to the pandemic has caught the attention of the world’s wealthy who continue to flock to Dubai, snatching up the most expensive homes in places such as Palm Jumeirah and Jumeirah Bay. This played a big role in increasing villa values, according to Knight Frank.
Dubai villa prices are tentatively up 5% in the third quarter and almost 17% higher than they were at the same time last year.
“Indeed, the number of homes sold over $ 10 million currently stands at 54, beating the previous record of 31, set in 2015 – and there are still three months to go this year,” said Durrani. “Unsurprisingly, Palm Jumeirah and Emirates Hills account for almost 75% of premium home sales in the city, but we are seeing new Dubai submarkets such as Business Bay joining the exclusive list of over 10 million locations. of dollars. “
“It was only a matter of time before the ‘halo effect’ of downtown Dubai spread to surrounding markets, highlighting that not only is Dubai’s super premium market booming, but that ‘it also matures. “
Abu Dhabi back in the dark
Not to be outdone, values in Abu Dhabi are also on the rise, with residential values enjoying positive year-over-year increases overall for their second consecutive quarter, according to Knight Frank analysis. .
Residential values in the UAE capital are now 2% higher than a year ago, with villas (3.1%) experiencing stronger growth than apartments (1.8%).
“This really is a case where bigger is better, as evidenced by recent off-plan villa quick sale projects in Abu Dhabi, such as Aldar’s 480 Noya Viva villa development on the Yas Island, which sold out in 48 hours in April, or the more recent quick sale of the 83 villas in Saadiyat Reserve the Dunes, ”Durrani said.