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19 of the 34 USd10 million plus homes sold in Dubai between January and June were on the iconic island.
According to analysis by global property consultancy Knight Frank, 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.
'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, are at their highest level in over five years. What’s more, 19 of the 34 USd10 million plus homes sold in Dubai between January and June were on the Palm Jumeirah,' said Faisal Durrani, 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.
July saw a new record with USD 32.9 million sale of a villa on Jumeirah Bay Island to a European buyer, highlighting the buoyancy in the villa market. Before the sale of that mansion the most expensive transaction in 2021 was the One100 Palm villa on the Palm Jumeirah sold for over USD 30 million in March.
Standing at USD 885 per square foot, average transacted villa prices are just slightly less than the all-time record high of USD 935 per square foot 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 percent of the Dh15.8 billion city-wide villa transactions during Q2,' Knight Frank said in a statement.
As for Palm Jumeirah apartments, transactional activity has also been high, with 300 units being sold in Q2 alone, which is the highest result since Q3 2015. Moreover, the average apartment deal size now stands at almost USD 490 per square foot, the highest level since 2016, Knight Frank notes in its 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.
Accordin to Valimulla, villa and townhouse sales remained strong continuing on from the Q1 2021 momentum, and prices increased sharply compared to the previous quarters.
