Dubai property market remains robust, but villa prices slow down
Values of residential properties in Dubai continued to rise in Q2 2022, up 10.1 percent from last summer, to average at 1,100 dirhams per square foot, real estate consultancy firm Knight Frank said in a new report.
“Price rises in Dubai have been sustained in Q2, albeit we have noted a slowdown in the rate of growth,” said Faisal Durrani, Partner – Head of Middle East Research, Knight Frank.
On the other hand, the mainstream market has seen a growth in demand of 10.1 percent in the last 12 months, with villas continuing to lead the charge.
Villa values jumped 19.3 percent higher compared to last summer.
Although Knight Frank said values are growing “more sustainably”, villa prices have slowed year on year from about 20 percent at the end of March to 21 percent at the end of last year.
According to the report, demand for ultra-prime properties remained steady but “continues to intensify”.
Villas at the very top of the price spectrum in Dubai’s most expensive neighborhoods continue to record strong price growth, which is lifting entire markets, Durrani stated.
The report said that Palm Jumeirah villa prices have grown by 51 percent in the last 12 months and by 68 percent since the onset of the pandemic, highlighting the extreme depth of demand for the city’s premiere homes.
On the other hand, residential rents in Dubai have risen at their fastest annual rate since 2014 this year, with price increases in premium areas such as the Palm Jumeirah touching 40 percent.
The new Dubai Residential Market Snapshot by CBRE showed soaring rent increases in Palm Jumeirah, reaching 39.8 percent year-on-year, while Downtown Dubai was up by 38.4 percent and Dubai Marina by 35.7 percent.
The average rent across all areas increased by 23.7 percent, broken down into apartments rising by 23.5 percent and villas by 24.8 percent, with the average price reaching 83,713 dirhams and 260,949 dirhams respectively.