According to ValuStrat, more quality outdoor spaces keep premium communities in high demand. The latest data show that high-end neighborhoods in Dubai have seen significant increases in home prices over the past two years, as investors and homebuyers have chosen to invest in larger properties with more amenities to enjoy better post-pandemic lifestyles. Many wealthy buyers buy apartments in Palm Jumeirah that offers the most luxurious apartments as well as villas.
Real estate consultancy ValuStrat, with its Price Index, showed that villas and apartments in top Dubai locations such as Palm Jumeirah, Arabian Ranches, Jumeirah Beach Residences, The Lakes, and Emirates Hills posted double-digit increases in prices and sales in November.
The Arabian Ranches villa segment observed a 34.1% year-on-year increase in property values and a 58.9% increase in transactions. And according to the ValuStrat Price Index, prices for villas in The Lakes increased by 31.2%, while the number of sales and purchases increased by 16%.
When it comes to apartments, Palm Jumeirah recorded a 17.3% rise in prices over the same period last year, with transactions growing 131.1% last month. Jumeirah Beach Residences also experienced a 14.6% increase in capital value, with a 68.1% increase in sales in November.
Luxurious residential areas in Dubai are in considerably high demand and home prices will continue to grow at a steady pace over the next year after a significant increase in 2021.
In 2022, it is expected that the capital value of high-end housing will continue its upward trend, but at a lower rate, on average between 5% and 10%. When it comes to capital appreciation in upmarket residential areas, the ValuStrat Price Index clearly shows that villas perform much better than apartments in this regard. Villa prices are already at the pre-pandemic level, while apartments have yet to return to it.
Property sales have increased in triple digits in some areas, even compared to 2019. The average size of popular apartments among buyers has also increased significantly over the past two years. In 2019, the average size of a residential unit was 141 square meters, and in 2020 this figure increased to 176 square meters and then increased to 190 square meters.
Real estate buyers on a budget tend to choose suburban areas with affordable housing. However, areas closer to the Expo 2020 site have also picked up the trend. Overall, residential property prices jumped 21% in the first 10 months of the year. The fourth quarter is also expected to end on a high note as real estate activity picks up.
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