According to Knight Frank’s Q1 2023 report, villa prices on Palm Jumeirah have risen by a whopping 126 per cent since the pandemic, with a 14 per cent increase in Q1 2023 alone.
Distinctive character
Among Dubai’s iconic residential communities, the Palm Jumeirah is still a standout. Having redefined the concept of extravagant waterfront living on a global scale, Palm Jumeirah’s distinctive characteristics and high degree of luxury have allowed the neighbourhood to rapidly gain in popularity, making it among the most desired areas to live in, in Dubai. Residential properties here epitomise the opulence, exclusivity and architectural marvels that Dubai is known for. It is no surprise then that the Palm continues to be the star performer in the emirate’s real estate market, especially in the villa segment. The apartment segment has also seen significant growth, with Palm Jumeirah coming in second at 20 per cent growth after Dubai Hills Estate at 23 per cent.
Spoilt for choice
Dubai, the city of dreams offers everything one can imagine. And if it doesn’t have it yet, rest assured, it’s already in the works. From the Burj Khalifa, the tallest building in the world, to the Palm Jumeirah, the largest man-made island, Dubai is a hub of architectural marvels and luxurious living. And the arc of options also includes affordable housing. Coincidentally, it’s interesting to see that more affordable locations like Arabian Ranches 2 have also experienced a price increase due to the demand for larger homes from domestic buyers wanting additional space.
Arabian Ranches 2 saw a 7 per cent price rise per square foot in Q1 2023, and the average rent here has risen by 23 per cent over the last 12 months. The average rental yield from this mature community development is currently at 5.4 per cent per annum. The family-friendly community offers amenities like an amusement centre, gyms, pools, and schools in the vicinity, while accessibility to central roads and popular city hotspots make it a popular choice for residents.
It is expected that prime residential neighbourhoods such as Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island will continue to dominate luxury home sales in Dubai. In fact, the demand for properties in these areas is so intense that Dubai has recorded a 44 per cent hike in prime home prices last year, making it the top globally.
In Q1 2023, there were a record 88 sales of homes priced at $10 million or more, with 23 transactions from Jumeirah Bay Island alone. This exclusive residential development, shaped like a titanic seahorse is home to the Bvlgari Resort & Residences Dubai, one of the most exclusive hospitality developments launched by the global lifestyle and jewellery brand, as well as stunning freehold properties including apartments, villas and townhouses. The neighbourhood is connected to Jumeirah via a road bridge. Jumeirah Bay Island also recorded the most expensive plot and penthouse sold in Q4 2022 and Q1 2023. The average transacted prices for high-end properties in these sought-after locations reached a peak of Dh8,800 per square foot during Q1.
— The writer is owner of Dubai-based real estate consultants, Original Bull and Bear Properties
