The price of villas in Dubai rose by 16.5 percent year-on-year in the third quarter of 2021, and a record breaking 54 homes worth $10 million or more have been sold in the emirate so far this year.

The emirate’s villa prices also rose 5 percent from the second to the third quarter, according to provisional Q3 2021 data from Knight Frank, with property prices in both Dubai and Abu Dhabi rising at their fastest rates since 2015.

Abu Dhabi’s residential property prices have increased by two percent year-on-year, with villa prices up by 3.1 percent and apartment prices up 1.8 percent year-on-year, according to Knight Frank.

Faisal Durrani, partner and head of Middle East research, said: “The market is roaring back to life. The emerging euphoria around the fact that the UAE has the pandemic so well and truly under control, coupled with the excitement around the much-anticipated World Expo are adding to the confidence that is taking hold in the residential market.”

Knight Frank said the UAE’s response to the pandemic had attracted wealthy buyers to locations such as the Palm Jumeirah and Jumeirah Bay, which had driven up villa values. 

“Unsurprisingly, the Palm Jumeirah and Emirates Hills account for almost 75 percent of super prime home sales in the city, but we are witnessing new Dubai submarkets such as Business Bay join the exclusive list of $10 million plus locations,” said Durrani. 

“It was only a matter of time before the ‘halo-effect’ from Downtown Dubai spilled over to surrounding markets, highlighting that not only is Dubai’s super prime market expanding, but it is also maturing.”

The previous record for the highest number of $10 million plus homes sold in Dubai was set in 2015, when 31 homes of that value sold in the entire year.

Of the 54 homes worth more than $10 million sold so far in 2021, 25 were in the Palm Jumeirah, 15 in Emirates Hills, seven in Dubai Hills Estate, two in Downtown Dubai, two in District one and one each in Jumeirah Bay Island and Business Bay, Knight Frank said in its report.

(Writing by Imogen Lillywhite; editing by Seban Scaria)

Imogen.lillywhite@refinitiv.com

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