Dubai Property Boom Increases Villa Prices by 146%
- Publish date: Thursday، 17 August 2023 | Last update: Wednesday، 24 April 2024
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Due to strong demand and steady economic growth, Dubai's residential real estate prices increased 17% on an annual basis in the second quarter, marking the 10th consecutive quarter of rise.
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The average price of a villa in Palm Jumeirah is currently Dh4,800 per square foot, up 146% since January 2020. According to the data, prices for villas in the area have now increased by 67% since their peak in 2017, while prices for flats are still 7% below their previous peak in 2015.
Real estate analysts predict that Dubai's real estate boom will continue for some time to come as a result of the city's expanding population, low taxes, and generally positive economic environment.
Faisal Durrani, partner, and head of research for Middle East and Africa at Knight Frank said, "The relatively long-run of price growth is showing no signs of slowing. If anything, all the market dynamics continue to point towards further increases, particularly when it comes to villas as the supply-demand dynamic remains out of kilter."
"With a rise in the volume of product launches over the last 12 to 18 months, as developers respond to the stable and sustained demand for homes, the volume of off-plan homes sold has been unsurprisingly rising, now accounting for just over 50 percent of sales," Mr Durrani further added.
Expansion of the 10-year golden visa program by the emirate, economic benefits from Expo 2020 Dubai, and rising oil prices all contributed to the momentum of the real estate market's growth.
Dubai's GDP rose by 2.8% annually to Dh111.3 billion in the first quarter of the year, maintaining the "robust momentum of growth" established in 2022, when the emirate's economy grew by 4.4%.
According to government data, the real estate industry rose by 2.4% in the first quarter, driven by a strong increase in property sales, which contributed 7.4% to the overall GDP.