A major property consultancy expects Dubai’s top residential market to rise the most globally.
Dubai’s premier residential market will expand by 13.5 per cent in 2023, the most worldwide. Knight Frank noted in its recent study that a demand-supply imbalance and a positive economic background underpin this rise.
Despite rising sales and value across all sectors, Dubai’s residential unit prices remained 15% below their 2014 peak.
Dubai’s residential market values gained 5.6 per cent in the first quarter, the ninth consecutive quarter of rise. Buyer demand increased. According to the property consultancy, demand for luxury second residences and the city’s position as a worldwide luxury hub drove the surge.
UHNWI demand has boosted branded residential sales since the pandemic. Branded properties like Baccarat properties in Downtown Dubai are selling at record prices, demonstrating their desirability.
“Dubai has reinforced its position as one of the choicest markets in the global luxury residential segment in the wake of a string of investor and resident-friendly reforms initiated by the government,” said Sobha Group founder and chairman PNC Menon. Over the last months, high-net-worth purchasers and investors from outside have been flocking to Dubai to build houses, drawn by the city’s many attractions and benefits, including its reputation as the region’s cleanest, safest, and friendliest residential destination.”
“Going forward, the demand for luxury properties that offer elegant living experiences in this city of choice of the ultra-rich and celebrities will continue to rise,” said Menon, who recently inaugurated his first signature residential project, The S tower.
Knight Frank partner-head of Middle East Research, Faisal Durrani, said prices are 15% below the 2014 peak despite the rapid rate of increases. Apartments are 18% behind the market peak from seven years ago. Villas, meanwhile, have equalled their 2014 peak and remain highly desired, particularly in the upper echelons of the market, with prices now 15% higher than Q1 2022 and even more significant growth in prime neighbourhoods.”
As domestic buyers prefer larger properties, especially in more cheap inland neighbourhoods, Dubai Hills Estate and Emirates Hills have seen dramatic price hikes, according to Knight Frank. One of the city’s biggest gainers, Dubai Hills Estate’s apartment prices rose 23% in the past year.
The Palm Jumeirah villa market has outperformed the metropolis, with prices climbing 14% in Q1 and 53% in the past year. Knight Frank reports that Palm Jumeirah property prices have soared by 126% since the pandemic began.