Dubai most popular areas as per sqf price increases

Residential property prices in Dubai continued to rise steadily in the first quarter of this year due to increasing demand from foreign investors and end-users, recording an average increase of around 11.5 percent year-on-year, according to Zeil Real Estate Insights.

Zeil Real Estate Insights recorded an increase in property prices of over 8 percent year-on-year and 0.3 percent month-on-month in April, as foreign buyers regain confidence in the emirate’s real estate sector following the successful completion 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 significant price growth in the first quarter.

Apartments also saw a similar trend, but the overall price increase is not yet in double digits. Some prominent areas, including Palm Jumeirah, Downtown Dubai, JBR, and The Views, remained in high demand.

“Palm Jumeirah remained the most sought-after destination, with prices up nearly 30 percent year-on-year in the first quarter of 2022,” according to Zeil Property Insights.

Nawar Fallaha, CEO of Zeil Real Estate, believes the Dubai real estate market will continue its upward trend in 2022 and beyond due to visa reform and the open approach to foreign investors.

“Steady monthly growth will accelerate with the announcement of new projects by leading developers to attract investors and end-users alike. Government support in the form of reformed visa policies will also facilitate the influx of foreign investors and buyers. This will ultimately impact not only the real estate market but also the country’s overall economy.”

Rising demand and prices for communities in Dubai

At Dh1,630 per square foot, Downtown Dubai recorded the highest price increase in the residential sector in the first quarter. JBR followed it, Palm Jumeirah and Dubai Hills Estate, where properties cost Dh1,450, Dh1,425, and Dh1,400 per square foot, respectively.

Business Bay at Dh1,360 per square meter, MBR City at Dh1,300, and Dubai Marina at Dh1,290 per square meter are other popular residential areas that saw an increase in housing prices. Property prices in the neighboring JVC and JVT areas are around Dh850 per square meter.

For villa neighborhoods, the highest price increase was recorded in Palm Jumeirah in the first quarter of 2022. The current average prices for villas here are Dh3,020. MBR City, Dubai Hills Estate, and Emirates Living also recorded significant increases in average prices at Dh1,800, Dh1,380 and Dh1,270 respectively.

Otherwise, premium villa communities Arabian Ranches 1 at Dh1,160 per square meter and Arabian Ranches 2 at Dh1,015 per square meter remained popular among buyers and investors. Villa prices per square meter in Mudon, JVT, and The Villa rose to Dh1,015, Dh950, and Dh910, respectively.

Shobeiry attributed the upswing in Dubai’s real estate market to high liquidity, low-interest rates, and immigration to the UAE following the successful management of the Covid 19 pandemic and the introduction of visa and business reforms.

“Since the international borders opened after the pandemic, more and more migrants have been attracted to Dubai’s shores for reasons of security, tax efficiency, quality of lifestyle, and a favorable business environment. Dubai has opened its arms and welcomed people and businesses from all over the world because of its friendly environment and consistent policies,” he said.

Key Takeaways

– Property prices in Dubai continue to rise steadily, with Palm Jumeirah remaining the most popular area for villa buyers and Downtown Dubai the most desirable location for apartments.

– The villa sector dominates the market, with key locations showing high numbers. Some residential developments are also seeing significant growth.

– The average price per square meter has increased in the 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 seen an increase in price per square meter include Palm Jumeirah, MBR City, Dubai Hills Estate, Emirates Living, Arabian Ranches, Arabian Ranches 2, Mudon, JVT and The Villa.

– Visa reform, high liquidity, low interest rates and open approach attract overseas property buyers