Dubai’s Posh Neighbourhoods That Witnessed Record Price Growth
Dubai real estate market seems to be reviving, so shows the trajectory of multiple neighbourhoods in Dubai witnessed price growth, for the first time ever since 2014.
Dubai as the face of development has seen rapid progress in all sectors of the economy, along with the much-needed population increase, which has opened up the investment prospects across retail, residential, luxury and office real estate segments.
What is to be noted is that the positive performance by some markets underlines the fact that there is a clear demarcation between few new-off developments like Downtown Dubai that has been a victim of constant oversupply and established areas of Dubai. The pressure in the real estate market has been because of macroeconomic forces including GDP, unemployment and price of oil. The real estate market of Dubai has matched these macroeconomic trends mostly. For the major part of the past decade and a half, Dubai has been one of the leading markets in terms of volume of real estate development projects as well as their size in the Middle East.
While The Lakes, a community of villas set around two golf courses has witnessed a price growth of 2.6 per cent, Palm Jumeirah which is an artificial land shaped as a palm with five-star hotels and A-grade properties, recorded a 1.2 per cent rise in prices of homes. It is believed that the mature communities in Dubai offering super good connectivity and amenities would be the least impacted. The luxury market has performed better than the mainstream market with price declines by 6.74 per cent, and overall the prices of prime locations in Dubai have fallen by an average of 5.48 per cent as compared to the first quarter of 2017.
The softest luxury neighbourhoods continue to decrease the average as developers and sellers are forced to recalibrate the prices owing to new constructions. While price declines in Downtown Dubai which is home to the iconic Burj Khalifa improved last year, they were still down by 5.2 per cent. Another pre-planned gated luxury community of villas, Emirates Hills, witnessed price declines by 12.2 per cent.
The prices will continue to soften if the delivery of scheduled homes takes place on time. This is in keeping with the fact that a considerable amount of supply of homes is scheduled to enter the market in the present year. Not to forget, the report also estimates that the number of Ultra-High Net Worth Individuals in Dubai is expected to rise by 60 per cent in the next 10 years.