Luxury property sales increased in Dubai: dozens of premium villas purchased within just a few months

Property prices in Dubai steadily recovered and increased by 9.5 percent in the last six months due to the strong demand.

According to the latest analysis issued by Property Monitor, demand for premium properties in Dubai has surged recently: dozens of luxury homes have been sold in just a few months in some of the prime locations of the emirate.

So far this year, 81 villas each costing upwards of USD 2.7 million were sold on the Palm Jumeirah alone, surpassing the whole of last year’s premium villa sales on the island, said Property Monitor in its report on Wednesday. 

In 2020, only 54 villas were sold on the artificial island.  

In April, a property on the island worth USD 30 million was sold, making it Dubai’s second-highest residential sales transaction ever. And there was another record-busting deal in the same month, when a buyer acquired Villa 02 at XXII Carat (Club Villas) on the West Crescent of Palm Jumeirah for USD 28 million, the third most expensive residential property sale in Dubai. 

At Emirates Hills, Villa R-66 was sold for USD 19.7 million, the fourth most expensive sale in the area and the highest since September 2018. 

Overall, April had 90 transactions involving properties worth over USD 2.7 million, which is 6.7 percent higher than in March, according to Property Monitor. 

Property prices in Dubai steadily recovered and increased by 9.5 percent in the last six months due to the strong demand, Property Monitor reported.

In April, prices went up by 2.5 percent to reach an average of around USD 243.67 per square foot. The rate of increase was the highest registered in a single month since March 2014. 

'Even after considering the declines seen during the early months of 2020, prices are now higher than a year ago and the strong recovery shows little sign of abating,' the report said. 

However, not all properties have recorded price increases, as some areas are still displaying weak prices. With the uneven performance, Property Monitor said, the strong price increases recorded in certain locations could slow in momentum 'as the recovery switches to a more sustainable pace across Dubai as a whole'. 

Property prices in Dubai fell during the onset of the coronavirus pandemic last year amid strict COVID-19 protocols that restricted the mobility of potential buyers. Shortly after the emirate eased its precautionary measures, buyers started coming back to the market.