Luxury homes in Dubai are still a bargain
"As has been the case throughout the pandemic, existing and aspiring home-owners have their eyes firmly set on larger homes, whether for more room for a home office, or access to extra space, indoors, or outdoors," says Faisal Durrani, Partner - Head of Middle East Research. Image Credit: Gulf News Archives
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Dubai: Residential property values in the UAE’s two largest cities, Dubai and Abu Dhabi, have expanded at their fastest pace since 2015, according to Knight Frank.

The emerging euphoria around the fact that the UAE has the pandemic so well and truly under control, coupled with the excitement around the much-anticipated Expo 2020 are adding to the confidence that is taking hold in the residential market

- Faisal Durrani, Partner - Head of Middle East Research

The UAE’s decisive and rapid response to the pandemic has caught the attention of the world’s wealthy who continue to flock to Dubai, snapping up the most expensive homes in locations such as the Palm Jumeirah and Jumeirah Bay. This has played a large part in driving up villa values, according to Knight Frank.

Villa prices in Dubai are provisionally up by 5 per cent in Q3 and nearly 17 per cent higher than they were at this time last year.

"Indeed, the number of $10m plus homes sold currently stands at 54, smashing the previous record of 31, set back in 2015 – and there’s still three months left to run this year," said said Durrani. "Unsurprisingly, the Palm Jumeirah and Emirates Hills account for almost 75 per cent of super prime home sales in the city, but we are witnessing new Dubai submarkets such as Business Bay join the exclusive list of $ 10m plus locations."

“It was only a matter of time before the ‘halo-effect’ from Downtown Dubai spilled over to surrounding markets, highlighting that not only is Dubai’s super prime market expanding, but it is also maturing.”

Abu Dhabi back in the black

Not to be outdone, values in Abu Dhabi too are climbing, with residential values overall enjoying their second consecutive quarter of positive year-on-year increases, according to Knight Frank’s analysis.

Residential values in the emirati capital are now 2 per cent higher than they were a year ago, with villas (3.1 per cent) experiencing stronger growth than apartments (1.8 per cent).

“It really is a case of bigger is better, as has been reflected in recent rapid off-plan villa sales projects in Abu Dhabi, such as Aldar’s 480-villa Noya Viva development on Yas Island, which sold out in 48 hours in April, or the more recent swift sale of all 83 villas at Saadiyat Reserve the Dunes”, said Durrani.