(MENAFN- Khaleej Times) The UAE residential market staged a strong recovery as record 54 properties worth $10 million plus were sold in Dubai during the third quarter of this year, latest data shows.
Global property consultancy Knight Frank said residential property values in the UAE's two largest cities, Dubai and Abu Dhabi, have expanded at their fastest pace since 2015.
Dubai villa prices surged 16.5 per cent on a year-on-year basis during the July-September quarter while Abu Dhabi residential values rose two per cent, according to provisional data released on Wednesday.
Faisal Durrani, partner and head of Middle East Research at Knight Frank, said the market is roaring back to life.
"The emerging euphoria around the fact that the UAE has the pandemic so well and truly under control, coupled with the excitement around the much-anticipated World Expo are adding to the confidence that is taking hold in the residential market," Durrani said in a statement to Khaleej Times.
Not to be understated, but the UAE's decisive, rapid and world leading response to the pandemic has caught the attention of the world's wealthy who continue to flock to Dubai, snapping up the most expensive homes in locations such as the Palm Jumeirah and Jumeirah Bay. This has played a large part in driving up villa values, according to Knight Frank.
Durrani said villa prices in Dubai are provisionally up by five per cent in third quarter and nearly 17 per cent higher than they were at this time last year.
"Indeed, the number of $10 million plus homes sold currently stands at 54, smashing the previous record of 31, set back in 2015, and there's still three months left to run this year," he said. Unsurprisingly, the Palm Jumeirah and Emirates Hills account for almost 75 per cent of super prime home sales in the city, but "we are witnessing new Dubai submarkets such as Business Bay" join the exclusive list of $10 million plus locations.
"It was only a matter of time before the 'halo-effect' from Downtown Dubai spilled over to surrounding markets, highlighting that not only is Dubai's super prime market expanding, but it is also maturing,” he added.
Abu Dhabi back in the black
Not to be outdone, values in Abu Dhabi, too, are climbing, with residential values overall enjoying their second consecutive quarter of positive year on year increases, according to Knight Frank's analysis.
Residential values in the Emirati capital are now two per cent higher than they were a year ago, with villas (3.1 per cent) experiencing stronger growth than apartments (1.8 per cent).
"As has been the case throughout the pandemic, existing and aspiring home-owners have their eyes firmly set on larger homes, whether for more room for a home office, or access to extra space, indoors, or outdoors," Durrani said.
"It really is a case of bigger is better, as has been reflected in recent rapid off-plan villa sales projects in Abu Dhabi, such as Aldar's 480-villa Noya Viva development on Yas Island, which sold out in 48 hours in April, or the more recent swift sale of all 83 villas at Saadiyat Reserve the Dunes," Durrani said.
Muzaffar Rizvi Business Editor/News Editor of Khaleej Times is a well-connected journalist and an economic and financial commentator. He has been in the mainstream journalism since 1997, covering the UAE's economy and key sectors. He holds a post-graduate degree in Economics and has won many awards for authentic and insightful reports on global and regional businesses and economic trends.
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