Real estate in Dubai’s most expensive locations is outperforming the overall market, fuelled in large part by the influx of overseas ultra-high-net-worth individual (UHNWI) capital that continues to target Dubai’s most luxurious homes, says global real estate consultancy, Knight Frank.

Prices in Dubai’s residential market continue to expand, with prime residential prices, encompassing the Palm Jumeirah, Emirates Hills and Jumeirah Bay Island, surging by 58.9% over the last 12 months, according to Knight Frank.

“The Palm Jumeirah and Emirates Hills continue to cement their iconic status, with global buyers continuing to jostle for an address in Dubai’s most exclusive enclaves. Villa prices on the Palm Jumeirah have increased by 38.6% in the last 12 months, for instance. In addition, there were a record breaking 93 ultra-prime home sales in 2021 – these are homes priced at over $10 million. During Q1, we’ve recorded another 32 ultra-prime deals, exceeding the second best annual total set in 2015,” says Faisal Durrani, Partner – Head of Middle East Research, Knight Frank. 

Knight Frank’s data reveals that the Palm Jumeirah, registered villa price growth of 10.9% during Q1 alone, with the priciest villa ever sold in Dubai transacting on the iconic island during March for a record AED280 million ($76.23 million). Similarly, in the exclusive Emirates Hills, the rate of annual villa price growth stood at almost 20% at the end of Q1.

Overall, house prices in Dubai grew by 10.6% last year and rose by a further 2.6% during the first three months of 2022, according to Knight Frank’s analysis.

The latest increase leaves values 11.3% higher than Q1 2021; the highest rate of annual growth since January 2015.

He explained: “The positive market sentiment – driven by the government’s world-leading response to the pandemic, coupled with the successful hosting of the World Expo, the reopening of travel corridors and Dubai’s global safe-haven status – continues to underpin the market’s rebound.”