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Residential values in prime markets in the emirate which comprise the districts of Palm Jumeirah, Jumeirah Bay Island and Emirates Hills will strengthen, with a growth rate of 29% in the third quarter of 2022. In accordance with the report, the price rises can be attributed to a shortage of new supply and strong inflows of ultra-high-net-worth individuals (UHNWI), who are aimed at purchasing second homes in Dubai.
Since the start of the pandemic, one of the most prestigious areas in the emirate, Palm Jumeirah, has registered price growth for prime real estate in excess of 100%. Prime residential prices across other top districts in Dubai increased by 89% in the last year. As stated by the report, property prices start from a low base, which makes the emirate one of the most 'affordable' luxurious residential markets in the world.
Ultra-prime properties priced over USD 10M have seen a record year in 2022. In the first nine months of 2022, a total of 152 ultra-prime sales were agreed. The area of Palm Jumeirah remains the most affordable in terms of the average transacted cost, compared to Jumeirah Bay Island and Emirates Hills.
Currently, despite the strong demand, development companies are not delivering new residential projects at the rate that was observed previously. The main challenge for the emirate is the shortage of waterfront homes because of the growing demand for real estate along the waterfront.
According to the analytical data of the real estate market of the emirate, there are more than 80% of transactions that are purchased with cash. It is unlikely to see demand decrease with cash purchases which are dominating the luxury residential market in Dubai.
