The first quarter of 2022 was the time when plenty of real estate sales records were set in Dubai. For example, on the island of The Palm Jumeirah the most expensive villa in history was sold. Will this summer be as hot as the beginning of the year, in terms of the number of transactions? One Palm, Royal Atlantis Resort and Residences and Cavalli Tower in the UAE are among some of the residential complexes that will try to beat this record.
The artificial island of The Palm Jumeirah became the leader among all areas of Dubai in the number of the most expensive transactions in the first quarter of 2022, the second place takes the Emirates Hills area.
Villas are definitely fueling demand in the Dubai real estate market, with homebuyers especially in demand for unfinished homes. According to an official report from the Dubai Land Department, 413 transactions were concluded on The Palm Jumeirah in the first quarter of 2022, an increase of 34%. The price equivalent of all concluded transactions amounted to: AED 3.9 billion (USD 1.06 billion), which is 96% more than a year ago.
Of the total number of transactions:
- 77 (19% of the total) were with houses worth up to AED 2 million (USD 540,000),
- 190 (46% of the total) were with villas worth up to AED 3 million (USD 820,000)
- and more than 111 transactions were concluded with real estate worth more than AED 5 million (USD 1.36 million, 27% of all transactions).
The average cost per square meter on the palm island in the premium segment was AED 22,669 dirhams (USD 6,171).
Palm Jumeirah villas for sale in Dubai
“Finished villas are among the most sought after properties,” said Chris Whitehead, managing partner at the brokerage firm. “They are second only to the resales of branded residences under construction, which are selling for the highest recorded price.”
These branded residences in the luxurious complexes of Atlantis, The Dorchester Collection, etc., can reach a price of up to stunning figures – USD 19,990 per square meter. Asking prices may be slightly higher, and it is expected that new projects on the island will test this price level.
The recent sale of a super-luxury mansion with an area of 798 square meters on the N line showed that luxury real estate is in high demand and will continue to attract wealthy people, millionaires and entrepreneurs to Dubai.
The man-made island of The Palm Jumeirah has become a leader in the lists of Dubai locations for luxury home sales since 2020. “Now the most sought after luxury homes are decorated in a modern or Mediterranean style, with a large adjacent plot, as well as mega-mansions overlooking the beach, golf course or park said Kunal Singh Gupta, Deputy Director of the international real estate company.
Super premium housing in Dubai is still four or five times cheaper than in major cities around the world. For wealthy buyers around the world, this is a good reason to go to Dubai and get a home here.
“It looks like 2022 will maintain an upward trajectory when it comes to sales volumes and property prices,” said Lynette Saketto, director of research and data at Property Finder Group. The authors of the report concluded that in 2022 the Dubai real estate market will continue to move on an upward trajectory, and sales volumes and prices in popular and elite areas of the city will grow.
The number of new real estate offers will remain low in prime areas and in the sector of villas and townhouses, so we should expect further growth in prices for these assets with continued high demand. The segment of housing under construction is also likely to be in demand in the near future due to:
- investor sentiment,
- favorable prices,
- the attractiveness of the emirate in general
- and its projects in particular.
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