Dubai’s residential market continues to experience an impressive upward trend, with values increasing by 5.6% in Q1 2023. This marks the 9th consecutive quarter of growth, driven by strong demand for luxury second homes and the city’s emergence as a global luxury hub, according to a Knight Frank report.
Experiencing an average growth of 5.1% between January and March, reaching AED 1,450 psf. In contrast, apartment prices increased by 5.7% to approximately AED 1,230 psf. Dubai Hills Estate and Emirates Hills, for instance, experienced sharp increases in prices as domestic buyer demand for larger homes fuels demand, particularly in more affordable inland communities. Dubai Hills Estate saw a 23% increase in apartment prices in the last 12 months, making it one of the strongest gainers in the city.
The Palm Jumeirah has been the city’s star-performing villa market, with prices rising by 14% during Q1 and a 53% growth rate over the last 12 months. Knight Frank’s data reveals that villa prices on the iconic Palm Jumeirah have increased by an impressive 126% since the start of the pandemic.
Branded residential sales have seen a sharp rise since the start of the pandemic, driven by UHNWI demand. Developments such as Baccarat Residences in Downtown Dubai have achieved record prices, highlighting the growing popularity of branded residences in the city.
According to the report, Dubai’s prime residential market is expected to experience the highest growth rate for any prime residential market globally, with a projected growth of 13.5% in 2023. This growth is supported by a clear demand-supply imbalance and a positive economic backdrop.
Also published on Medium.
