Villa prices in ten Dubai communities have more than doubled in the past four years, driven by the higher demand from residents and high net-worth individuals who relocated to Dubai.
According to the latest data released by global real estate consultancy ValuStrat, Arabian Ranches, Dubai Hills Estate, Emirates Hills, Green Community West, Jumeirah Islands, Jumeirah Park, Palm Jumeirah, The Lakes, The Meadows and Victory Heights saw capital values of villas in these communities jumping more than 100 per cent since 2020-21 till July 2024.
The biggest jump was witnessed in Jumeirah Islands where villa prices rocketed 180 per cent in the past four years followed by Palm Jumeirah (155 per cent), Arabian Ranches (144 per cent), Dubai Hills Estate (136.5 per cent) and Emirates Hills (140 per cent).
Dubai’s property market took a turn during the pandemic when demand for villas, townhouses and bigger apartments jumped as residents started moving into larger units due to restrictions on public movement by the authorities in order to control the pandemic. The successful handling of the pandemic also attracted high-net-worth individuals from other parts of the world who bought properties here and made Dubai their second home.
“The Dubai market cycle was already nearing its low point, with transacted prices per square foot at record lows. The pandemic drove these prices even lower, making the market highly affordable just as owner-occupier demand for larger living spaces reached an all-time high. Domestic buyers were seeking extra room for home offices, space for homeschooling, and outdoor gardens. As travel restrictions lifted, increasing competition from international investors further pushed prices upward,” Haider Tuaima, director and head of real estate research at ValuStrat, told Khaleej Times.
The inflow of millionaires into Dubai also saw demand and prices of villas and townhouses jumping multifold in the post-pandemic period. Dubai now houses 72,500 millionaires, 212 centi-millionaires and 15 billionaires.
According to the Wealth Migration Report 2024 released by Henley and Partners, more than 6,700 millionaires will relocate to the UAE this year, putting the Emirates at the top of all the countries in attracting the highest number of high-net-worth individuals.
Going forward, the Global Wealth Report released by Swiss bank UBS projected that the number of millionaires with assets of over $1 million will increase by nearly 29,866 or 15 per cent from 202,201 in 2023 to 232,067 in 2028.
Tuaima expects demand for villas and townhouses to remain robust, with more communities expected to double in value by the end of the year.
According to the latest report released by Asteco, as many as 3,925 villas were completed in Dubai in the first half of this year, including 1,175 in the second quarter. It projected 5,000 villas to be delivered by the end of 2024.
“Given the current market conditions, we anticipate an additional 10 per cent increase in villa values during the second half of the year,” he said.
For a detailed perspective on the property market, visit: Dubai - VPI Residential Capital Values - July 2024
