Due to increased demand from locals and wealthy individuals who moved to Dubai, villa prices have more than doubled in 10 communities in the last four years.
The most recent delinquent data from international real estate consulting firm ValuStrat, which includes Jumeirah Park, Palm Jumeirah, Jumeirah Islands, Green Community West, Arabian Ranches, Dubai Hills Estate, Emirates Hills, and Jumeirah Islands, The Meadows, Victory Heights, and The Lakes saw capital values of villas in these communities jumping more than 100% since 2020-21 till July 2024.
The most significant jump was witnessed in Jumeirah Islands, where villa prices rocketed 180% in the past four years, followed by Palm Jumeirah (155%), Arabian Ranches (144%), Dubai Hills Estate (136.5%) and Emirates Hills (140%).
Pandemic’s Impact on Dubai’s Property Market
Dubai’s property market took a turn during the pandemic when demand for villas, townhouses, and bigger apartments jumped as residents moved into larger units due to restrictions on public movement by the authorities to control the pandemic. The thriving handling of the pandemic even drew high-net-worth people from other regions who purchased properties here and created Dubai their 2nd home.
“The Dubai market cycle was already nearing its low point, with transacted prices per square foot at record lows. The pandemic drove these prices even lower, making the market highly affordable just as owner-occupier demand for larger living spaces reached an all-time high. Domestic buyers were seeking extra room for home offices, space for homeschooling, and outdoor gardens. As travel restrictions lifted, increasing competition from international investors further pushed prices upward,” Haider Tuaima, director and head of real estate research at ValuStrat, told Khaleej Times.
Price Changes in Dubai Communities
Location | 2020-2021 | July 2024 | % change |
Arabian Ranches | 2.7 | 6.6 | 144.4 |
Dubai Hills Estate | 5.2 | 12.3 | 136.5 |
Emirates Hills | 28.8 | 69.2 | 140.0 |
Green Community West | 4.4 | 9.1 | 107.0 |
Jumeirah Islands | 4.6 | 12.9 | 180.4 |
Jumeirah Park | 3.7 | 8.2 | 121.6 |
Palm Jumeirah | 10.7 | 27.3 | 155.0 |
The Lakes | 2.7 | 6.0 | 122.2 |
The Meadows | 3.5 | 8.2 | 134.2 |
Victory Heights | 4.5 | 9.9 | 120.0 |
(Price in million dirhams)
Influx of High-Net-Worth Individuals
The inpouring of millionaires into Dubai even noticed demand and prices of villas and townhouses bouncing multifold in the post-pandemic span. Two hundred twelve centi-millionaires, 15 billionaires, and 72,500 millionaires reside in Dubai.
As per the Wealth Migration Report 2024 released by Henley and Partners, the United Arab Emirates is the top destination for high-net-worth individuals, with over 6,700 millionaires expected to relocate there this year.
According to the Swiss bank UBS’s Global Wealth Report, the number of millionaires with assets over $1 million will rise by almost 29,866, or 15%, from 202,201 in 2023 to 232,067 in 2028.
Also Read: Dubai Ranked Among Few Global Cities with Accelerating Property Market Growth
Future Outlook
According to Tuaima, there will be a strong demand for townhouses and villas, and the value of several communities should double by the end of the year.
As many as 3,925 villas were finished in Dubai in the first half of this year, including 1,175 in the second quarter, according to the most recent report published by Asteco. By the end of 2024, 5,000 villas were expected to be delivered.
“Given the current market conditions, we anticipate an additional 10% increase in villa values during the second half of the year,” he said.
