Major Highlights

  • Prices of luxury homes saw an increase of 44.2 per cent in 2021, the highest since 2015.
  • The Dubai property market made the highest jump globally in the luxury housing segment.
  • Emirates Hills, Palm Jumeirah, and Jumeirah Bay Island remained the top choices for luxury homes in Dubai.
  • 2021, on the whole, saw a 9.2 per cent increase in average prices of residential properties.

The Dubai property market reported a significant jump of 44.2 per cent in the prices of luxury homes in 2021. It is the highest jump the market has witnessed since 2015. The preceding year saw a total of 93 luxury homes sold for over $10 million as international elite buyers forayed into the market due to a strong response to the COVID-19 pandemic by the emirate and subsequent recovery phase.

Knight Frank’s Reports suggest that ultra-high-net-worth buyers belonging to Russia, India, and Europe led the growth in the luxury housing segment in Dubai. Buyers from Monaco and Switzerland were also active in the market, according to the report.

This record increase in luxury home prices in 2021 has cemented Dubai’s position as the leading property market in this segment. During the preceding year, it surpassed prominent cities, such as Moscow, San Diego, Miami, Hampton, and Seoul that saw an increase of 42.4 per cent, 28.3 per cent, 28.2 per cent, 21.3 and 21 per cent, respectively, in the prices of luxury homes. Toronto, Taipei, San Francisco, and Los Angeles are other top places that recorded a significant increase in luxury home prices.

The areas that remained popular among buyers of luxury properties include Emirates Hills, Palm Jumeirah, and Jumeirah Bay Island. Downtown Dubai also produced favourable results as the marquee building Burj Khalifa saw an increase of 23 per cent in terms of apartment prices. The most expensive residential property in 2021, however, was sold in Jumeirah Bay Island. It is an ultra-luxury villa valuing $32.9 million.

The demand for bigger homes, COVID relaxation, expatriate and investor-friendly policies, strong pandemic management, and visa reforms are some of the major reasons accredited to the advent of wealthy investors and buyers in the property market and the subsequent high performance. This has resulted in the sense of positivity in the market, which is evident in the overall performance as well.

Apart from the luxury housing segment, the overall residential market maintained its upwards trend during 2021. There were over 52,000 properties sold with a collective worth of $31.09 billion. It surpassed the collective value of 2019 and 2020. This says a lot about the Dubai property market rebound. The average prices, on the whole, increased by 9.2 per cent with the villa segment performing better than the apartments in terms of prices. The former saw a rise of 21.2 per cent while the latter staged an increase of 7.2 per cent.

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