Dubai rents may be levelling, but property prices certainly are not gaining 17% in 12 months

Dubai rents may be levelling, but property prices certainly are not gaining 17% in 12 months

Dubai: Rents in Dubai may be showing signs of some sort of levelling off, but the same is definitely not happening on property sales values for now. The average value on residential deals have seen a 17 per cent rise in the last 12 months, with the April-June period alone packing in a near 5 per cent gain, according to the consultancy Knight Frank.

And if it’s a luxury home that an investor is planning to buy now, he or she would have to reckon with an eye-watering 125 per cent increase in asking prices that Dubai’s poshest neighborhoods have seen since January 2020.

If any of these prospective buyers are hoping to see signs of a cooling off, they are not getting it. “As things stand, the relatively long-run of price growth is showing no signs of slowing,” said Faisal Durrani, Head of Research for Middle East and Africa at Knight Frank. “If anything, all the market dynamics continue to point toward further increases, particularly when it comes to villas as the supply-demand dynamic remains out of kilter.”

For instance, at Jumeirah Bay Island, Emirates Hills and Palm Jumeirah, villa prices were up 11.6 per cent in Q2-23 and an ‘extraordinary 125