The residential property prices in Dubai continued to increase at a steady pace as the sector recorded year-on-year average increase of around 11.5 per cent in first quarter this year due to rising demand from foreign investors and end-users, according to the Zoom Property Insights.
The Insights also noticed an over 8 per cent year-on-year jump and 0.3 per cent month-on-month increase in property prices in April as overseas buyers repose trust in the emirate's real estate sector following a successful conclusion of Expo 2020 on March 31, 2022.
The villa sector continued its dominance as several key areas, including Arabian Ranches, Jumeirah Islands, The Lakes, JVC, and Palm Jumeirah saw a major increase in prices during the first quarter.
Apartment locations also noticed a similar trend, but the overall price growth is yet to hit the double-digit mark. Some prominent areas, including Palm Jumeirah, Downtown Dubai, JBR and The Views remained in demand.
“The Palm Jumeirah remained the most sought-after destination with nearly 30 per cent year-on-year increase in prices during Q1, 2022,” according to the Zoom Property Insights.
Ata Shobeiry, CEO of Zoom Property, believes that the Dubai property market will continue its upward trajectory during 2022 and beyond because of its visa reforms and open-arm approach to foreign investors.
“The steady monthly growth will accelerate as new developments are announced by top developers, designed to attract investors and end-users alike. The support from the government in terms of reformed visa policies will also facilitate the influx of overseas investors and buyers. This will ultimately impact not only the property market but the overall economy of the country”.
Rising demand and prices of communities in Dubai
Standing at Dh1,630 per square foot, Downtown Dubai recorded the highest price increase during the first quarter in the apartment sector. It was followed by JBR, Palm Jumeirah, and Dubai Hills Estate, as properties here cost Dh1,450, 1,425, and Dh1,400 per square foot, respectively.
Business Bay with Dh1,360 per square foot, MBR City with Dh1,300, and Dubai Marina with Dh1,290 per square foot are other popular communities that witnessed an increase in the prices of apartments. Property price in neighbouring areas, JVC and JVT, is around Dh850 per square foot.
Among villa communities, the highest price increase in Q1, 2022 was recorded in Palm Jumeirah. The current average prices of villas here stand at Dh3,020. MBR City, Dubai Hills Estate, and Emirates living with Dh1,800, Dh1,380, and Dh1,270, respectively, also recorded a significant increase in average prices.
Other than that, the premium villa communities, Arabian Ranches 1 with Dh1,160 per square foot and Arabian Ranches 2 with 1,015 per square foot, remained popular with buyers and investors. Villa prices per square foot in Mudon, JVT, and The Villa rose to Dh1,015, Dh950, and Dh910, respectively.
Shobeiry attributed the upswing in the Dubai property market to high liquidity, low-interest rates, and migration to the UAE following the successful handling of the Covid-19 pandemic and the introduction of visa and business reforms.
“Since the international borders are open after the pandemic, Dubai has seen more expats move to its shores for safety reasons, tax efficiency, lifestyle quality and a supportive business environment. Dubai opened its arms and welcomed people and businesses from across the world because of its friendly environment and consistent policies,” he said.
• Dubai property prices continue to rise at a steady pace as Palm Jumeirah remains the most popular area for villa buyers and Downtown Dubai appears the most sought-after location for apartments
• The villa sector is dominating the market, with key locations producing high figures. Certain apartment communities also record substantial growth.
• The average price per square foot has increased in top apartment locations, including Downtown Dubai, JBR, Palm Jumeirah, Dubai Hills Estate, Business Bay, MBR City, Dubai Marina, JLT, JVT, and JVC.
• Villa communities that have recorded an increase in price per square foot are Palm Jumeirah, MBR City, Dubai Hills Estate, Emirates Living, Arabian Ranches, Arabian Ranches 2, Mudon, JVT, and The Villa.
• Visa reforms, high liquidity, low rates and open-arm approach attract overseas property buyers
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