BrazilPrices of apartments and villas in Palm Jumeirah nearing record
The price of a house in Dubai’s iconic Palm Jumeirah is closing in on a new high, buoyed by strong demand from wealthy buyers, according to Knight Frank’s latest analysis.
In the second quarter of 2021, the average transacted prices for residential units on the man-made island stood at 2,100 dirhams ($571) per square foot, the highest level in over five years. The island has cemented its position as Dubai’s place to be for the most wealthy – 19 of the 34 homes sold this year for a value of $10+ million were on the Palm Jumeirah.
In the multi-million dollar homes segment, the premium location accounted for more than half of all homes sold across Dubai during the first half of the year. “The boom in (ultra-)prime home sales is nowhere better reflected on the Palm Jumeirah,” said Faisal Durrani, partner and head of Middle East research at Knight Frank.
The Covid-19 pandemic is playing its part in driving people to Palm Jumeirah. Having faced lockdowns in crowded places, many premium-segment buyers are keen to relocate to accommodations that offer more space, while maintaining the luxury and exclusivity they are accustomed to. Durrani: “The pandemic has triggered a shift to hybrid working models and highlighted the value of personal space.”
Meanwhile, Palm Jumeirah continues to enhance its facilities, as part of its ambition to mature into a “city of its own.” The island for instance recently saw the opening of Nakheel Mall, enhancing the amenities available to the island’s residents.
The largest share of transactions was in the apartment segment, which looks back at a near record-breaking quarter, both in volume and sales prices. “300 flats were in Q2 alone; the highest since Q3 2015. And not only that, but the average apartment deal size now stands at almost 1,800 dirhams per square foot, the highest level since 2016,” explained Yasin Valimulla, an associate partner at Knight Frank Middle East.
In the villa segment, a new record has been set in terms of sale price, with the USD 32.9 million sale of a villa on Jumeirah Bay Island to a European buyer now the most expensive home on the island.
The Palm Jumeirah Dubai is part of a larger series of developments called the Palm Islands, including Palm Jebel Ali and Palm Deira. The island was first inhabited in 2006 (land reclamation and construction started in 2001) and currently houses an estimated 78,000 residents.
