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House prices in Dubai during the second quarter of 2021 accelerated at their fastest pace since 2014, global property consultancy firm Knight Frank revealed.
The average transacted prices of Dubai properties in Q2 rose by about 1 per cent to AED 1,156 per sq.ft compared to Q1.
Villas are reportedly seeing significant uptake compared to apartments and townhouses.
"The confidence that has been injected into the economy by the government’s phenomenal response to the pandemic has percolated across the economy; buyers feel more confident about life and are committing to home purchases in increasing numbers," Faisal Durrani, Partner – Head of Middle East Research, Knight Frank, said.
"It’s larger homes – villas – that are seeing the sharpest rebound, with prices now about 17 percent below the last market peak six years ago,” he added.
Knight Frank’s research revealed that Dubai recorded 128 transactions of properties valued at AED 20 million or more between January and June 2021, the highest level since 2015, when 137 deals in this price bracket were recorded. A total of 75 homes valued at AED 20 million or more were sold in 2020.
"Families are looking for larger homes, with more outdoor space and even room for a home office as many are hedging their bets on greater remote working going forward, echoing what we have been seeing elsewhere in the world," Durrani said.
Maria Morris, Partner, Head of Residential at Knight Frank Middle East, said: “Dubai's prime and super-prime residential markets have continued on an impressive upward trajectory in the first half of 2021, with both local and global buyers continuing to see the appeal of Dubai for luxury real estate investment.
UAE’s impressive COVID-19 vaccination levels have played an imported role in the uptick in the Dubai property market.
The appetite for real estate in the emirate has also been whetted by factors such as the government’s efforts to aid economic activity in recovering after the lockdown as well as the introduction of remote work visas, the Golden Visa and 100 percent foreign company ownership.
(Writing by Seban Scaria; editing by Daniel Luiz)
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