Prime residential values in the emirate of Dubai continue to rise, growing by 29% in Q3 alone. One of the greatest influences on price growth has been made by a persistent deluge of Uhnwis, who strive to purchase second homes in Dubai's premier districts. This trend demonstrates a significant departure to the two previous market cycles of the emirate, when the predominant number of buyers were purchasing real estate for its subsequent rental or resale.
In several areas, such as, for example, Palm Jumeirah, property prices have increased over 100% compared to the start of the pandemic. Sales of ultra-prime residences, which refers to real estate priced at over AED 37M (USD 10M), have also hit new heights: 152 homes were registered as sold so far this year, eclipsing 93 in 2021. And 93 of these 152 transactions took place in the third quarter of 2022 alone.
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Prime residential communities in Dubai remain amongst the most affordable in the world: about AED 3.2К (USD 870) per sq. ft. This factor, as well as the high quality of residential real estate now available in the upper echelons of the market makes Dubai one of the world's leading second homes markets.
It is expected that prime real estate prices in the emirate will be around 60-80% higher at the end of the year compared to 2021. Prices on properties in the Palm Jumeirah area have already increased 101%, while prices on Jumeirah Bay Island have risen by 98%.
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Dubai is becoming a leading city for living, working and entertainment, supporting strong demand for residential and commercial real estate in the emirate. In the third quarter of 2022, Dubai recorded the highest number and value of transactions in the secondary market, worth more than AED 100 million (USD 27 million). Transaction volumes show no signs of slowing down, with the total secondary market transactions up 49% in the third quarter of 2022 compared to the same period in 2021. In turn, the off-plan real estate market has shown a 60% growth.
