Values of residential properties in Dubai continued to rise in Q2 2022, up 10.1% from last summer, to average at AED 1,100 per square foot, consultancy firm Knight Frank said in a new report.

“Price rises in Dubai have been sustained in Q2, albeit we have noted a slowdown in the rate of growth,” said Faisal Durrani, Partner – Head of Middle East Research, Knight Frank.

On the other hand, the mainstream market has seen a growth in demand of 10.1% in the last 12 months, with villas continuing to lead the charge.

Villa values jumped 19.3% higher compared to last summer, but the “emerging tone for pricing is one of less steep rises”.

Although Knight Frank said values are growing “more sustainably”, villa prices have slowed year-on-year from about 20% at the end of March to 21% at the end of last year.

According to the report, demand for ultra-prime properties remained steady but “continues to intensify”.

Villas at the very top of the price spectrum in Dubai’s most expensive neighbourhoods continue to record strong price growth, which is lifting entire markets, Durrani stated.

The report said that Palm Jumeirah villa prices have grown by 51% in the last 12 months and by 68% since the onset of the pandemic, highlighting the extreme depth of demand for the city’s premiere homes.

(Editing by Seban Scaria seban.scaria@lseg.com)