After Emirates Hills, Jumeirah Bay Island, and Palm Jumeirah, elites seeking to settle in Dubai have turned to Jumeirah Islands as a new hunting area.
Prime Neighborhood Emerges
Global real estate consultancy Knight Frank said the Islands recorded more than 10% of all deals valued at over Dh10 million over the past three years, demonstrating that the area can hold its value and become a prime neighborhood.
The most pricey home to sell in the artificial island cluster was a four-bedroom, 5,500-sq. Ft. home that sold for Dh28 million—or Dh5,111 per sq. Ft.—in late December 2023. In the last 12 months, 97 homes worth approximately Dh1 billion have changed hands in Jumeirah Islands.
Dubai: An Emerged Market
Will McKintosh, regional partner and Knight Frank’s head of residential for Mena, emphasised that Dubai is now an established market rather than an emerging one.
“The growing list of prime residential neighborhoods is yet another sign of maturity bedding in, and it is only a matter of time before other areas such as Tilal Al Ghaf, Jumeirah Golf Estates, Al Barari, and Blue Waters also make the transition to prime status,” he added.
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High Demand Leads to Limited Supply
Due to the high demand for properties on Jumeirah Islands, the number of homes available for sale has declined by 28% over the last 12 months to 279, adding to the 44% decline in prime home listings in the city to about 4,900 properties, said Faisal Durrani, partner, and head of research for Mena at Knight Frank.
Long-Term Investment Mindset
He added that buyers continue to pay record prices for homes in the Islands and are spending similar amounts on refurbishing them, strongly pointing to a longer-term buy-to-hold or buy-to-live psyche that has specified the market for the last 4 years.
“As we saw throughout the pandemic, the ‘race for space’ underpinned the performance of villa prices in Dubai, which jumped by 17% over the last 12 months, and the same has been true for Jumeirah Islands. The other factor contributing to its ascension to the prime club has been the unending surge in demand from international buyers for either waterfront homes or those that offer access to parks and green spaces – and Jumeirah Islands provides both,” said Durrani.
Aspiration for Villas Rises with Net Worth
According to Shehzad Jamal, partner at Knight Frank for strategy and consulting for MEA, the desire to own a Dubai villa increases with nett worth, rising from 30% or those with a net worth of $2-5 million to 48% for those with personal wealth levels of over $15 million. This figure climbs further to 59% amongst globally high net-worth individuals with a net worth of over $20 million.
