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Palm Jumeirah house prices close to record high

August 11, 2021
real estate

A new record was set in July with the $32.9 million sale of a villa on Jumeirah Bay Island to a European buyer.

Dubai’s Palm Jumeirah is not only registering a new record high villa prices but also posting the highest number of home sales in almost five years, according to analysis by global property consultancy Knight Frank.

“The boom in ultra-prime home sales across Dubai is nowhere better reflected than on the Palm Jumeirah, where average transacted prices, at over Dh2,100 per square foot (psf), are at their highest level in over five years. What’s more, 19 of the 34 $10 million plus homes sold in Dubai between January and June were on the Palm Jumeirah,” said Faisal Durrani, Partner – head of Middle East Research, Knight Frank.

“Villas remain in high demand as both resident expats and international investors seek to secure larger and more luxurious homes in the most prestigious parts of the city. The pandemic has taught us all the importance of personal space and with a shift to hybrid working models emerging as the norm, families are seeking accommodation that delivers on space, luxury and exclusivity. This accelerating trend has driven average transacted villa prices on the Palm Jumeirah up by an impressive 40 per cent over the last four years,” said Durrani.

A new record was set in July with the $32.9 million sale of a villa on Jumeirah Bay Island to a European buyer, highlighting the buoyancy in the villa market. Prior to the sale of that mansion, the most expensive home to sell in 2021 was on the Palm Jumeirah, where One100 Palm sold for over $30 million in March.

At Dh3,250 psf, average transacted villa prices are just shy of the all-time record high of Dh3,436 psf set in Q3 2017. “Despite accounting for a little over 2.0 per cent of the total number of villa sales across Dubai, the 90 villa transactions on the Palm Jumeirah drove almost 13.5 per cent of the Dh15.8 billion city-wide villa transactions during Q2,” Knight Frank said in a statement.

“The Palm Jumeirah is really coming into its own. The recent opening of Nakheel Mall has helped to cement the amenities available to the island’s residents, helping to create not only an exclusive enclave, but one that epitomises the very definition of a 15-minute city; an emerging and highly desirable legacy trend of the pandemic globally,” said Durrani.

Apartments on the Palm Jumeirah have also shown a resurgence in transactional activity, with 300 flats selling in Q2 alone; the highest since Q3 2015. And not only that, but the average apartment deal size now stands at almost Dh1,800 psf, the highest level since 2016, according to Knight Frank’s analysis.

“There has certainly been a very healthy number of transactions for Q2 2021 with record breaking months and sales prices. Apartment sales make up a large proportion of transactions with a number of high value transactions for the boutique developments such as Palme Couture, Atlantis The Royal, One Palm and W Residences,” said Yasin Valimulla, associate partner at Knight Frank Middle East.

Valimulla said villa and townhouse sales remained strong, continuing on from the Q1 2021 momentum, and prices saw a sharp increase compared to the previous quarters. “The villa market has always proven to have its own micro market and with so many transactions happening, we are seeing price expectations increasing with the demand being higher than the current villa supply. This has been evident with both sales and rentals transactions.”

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