Prime areas in Dubai continue their upward trajectory as demand rises
05 October 2022 – ZAWYA BY REFINITIV – www.zawya.com
- Property prices in Dubai continue to increase in affordable and luxury segments.
- Business Bay, JLT, JVC, and Dubai Sports City dominate the market for affordable apartments.
- JVC, Dubailand, DAMAC Hills, and The Springs record an increase in the average price for affordable villas.
- Downtown Dubai, Dubai Marina, Dubai Hills Estate, Palm Jumeirah, and JBR remain the preferred choices for luxury apartments.
- Palm Jumeirah, Dubai Hills Estate, and The Villa noted the highest growth in terms of average price for luxury villas.
Dubai property prices continue to increase across various affordable and luxury segments as key areas record high numbers. Sales trends in the first half of the year indicate that average prices of affordable properties have increased up to 8 per cent while rates in upscale areas surged up to 19 per cent, according to the Zoom Property Insights.
Arabian Ranches, Dubai Hills Estate, Downtown Dubai, and Dubai Marina have remained the preferred choices among high-net-worth investors, while small-ticket investors focused on suburban areas, such as Dubailand, DAMAC Hills 2, Business Bay, and Jumeirah Village Circle.
Ata Shobeiry, CEO of Zoom Property, believes that the Dubai property market will break previous records in 2022.
“It’s certainly a good sign for Dubai real estate that key areas are performing up to their standards. While the increase in demand and price of luxury properties in Dubai has been driving the market, it’s the growth in the affordable property segment that indicates a well-rounded performance. With this high momentum, 2022 is surely going to conclude on a record-breaking note for Dubai real estate,” Shobeiry said.
Business Bay, JVC dominate the affordable segment
With a price increase of nearly 6.4 per cent during H1, Business Bay remained one of the most sought-after areas for affordable apartments during H1, 2022. With this increase, the average price per square foot jumped to AED 1,436.
It was followed by JLT and JVC, as both these areas recorded a price increase of 5.7 and 2.8, respectively. The average property price per square foot in the former remained AED 987, while the latter jumped to AED 872. Average prices in Dubai Sports City also rose to AED 626 after an increase of 3.1 per cent.
For affordable villas, JVC, with a 7.7 per cent price increase, produced high numbers as the average prices rose to AED 660. On a similar note, Dubailand recorded a 5.7 per cent price increase, taking the average price to AED 816. DAMAC Hills (with a 5.25 per cent increase and AED 1,035 average price) and The Springs (with a 1.65 per cent increase and AED 1,128 average price) were other notable areas for affordable villas in H1, 2022.
Downtown Dubai & Palm Jumeirah lead the luxury segment
Downtown Dubai noted the highest price increase of 6.7 per cent during the first half, taking the average price per square foot to AED 2,237 among areas for luxury apartments. It was followed by Dubai Marina with a nearly 6 per cent increase and AED 1,459 price per square foot. Dubai Hills Estate remained a close third with a 5.95 per cent increase. The average per square foot in this community was recorded at AED 1,491.
Besides the aforementioned, prices of luxury apartments in Palm Jumeirah and JBR also increased during the first half of the year, according to the Zoom Property Insights.
The highest price increase for luxury villas was noted in Palm Jumeirah at a little over 18 per cent. The average property price in this prime community has reached AED 3,619 per square foot.
Dubai Hills Estate remains the only other community to hit the double-digit mark in terms of an increase in the prices of luxury homes. With an 11.15 per cent increase, its average price per square foot rose to AED 1,490. Prices of luxury homes in The Villa, with a nearly 8 per cent increase, have jumped to AED 850.
“The latest statistics reveal that luxury villas continue to outperform other properties, with some communities reporting double-digit growth. However, apartments are catching up as well. This growth, although uneven in many areas, depicts the market is on the right track with abundant lucrative options for investors and HNWIs,” Shobeiry said.