Dubai real estate prices just surged 44 per cent as HNWI investors buy into golden visas, tight Covid-19 controls … and super-prime luxury villas to die for
- A new uber-luxury mansion on Jumeirah Bay Island sold for a record-breaking US$33 million, while neighbourhoods like Palm Jumeirah and Emirates Hills remain hot property
- Sales of homes priced more than US$10 million multiplied last year as ultra-rich investors moved in, according to Knight Frank’s Prime International Residential Index 100
Over the past year, luxury home prices in Dubai have risen faster than the emirate’s billionaires can collect prestige cars.
In the United Arab Emirates’ “City of Gold”, prime property values accelerated by 44 per cent in 2021, the most among 100 cities tracked in Knight Frank’s Prime International Residential Index 100 (PIRI 100). Covid-19 is cited as a significant contributor to this growth.
Kate Everett-Allen, head of international residential research at Knight Frank, says the UAE’s handling of the pandemic and its strong take-up of the vaccine, together with the delivery of high-end turnkey projects as well as innovative new visa initiatives and economic reforms, have boosted Dubai’s profile in the eyes of international buyers.
“The top end of the market has been particularly active – sales above US$10 million have historically accounted for 2 per cent of all transactions, but in 2021, they equated to 7 per cent,” she said.
Because of the pandemic, adds Andrew Cummings, partner and head of prime residential at Knight Frank Middle East, more residents are opting to move into master-planned villa communities that offer open space, good air quality and nature-inspired surroundings.
“Larger villas in prime locations have seen a rise as people are looking for a house with space for a home office, an outside area and private pool,” he said.