Dubai’s prime housing market set to record highest global growth

Dubai’s prime housing market set to record highest global growth

Prices still remain 15% lower than their 2014 peak

The Palm Jumeirah has been the city’s star-performing villa market, with prices rising by 14 per cent during Q1. — KT file

Published: Mon 15 May 2023, 6:09 PM Last updated: Mon 15 May 2023, 6:10 PM

The prime residential market in Dubai is expected to experience the highest growth rate globally, data from a leading property consultancy shows.

In 2023, the prime residential market in Dubai is projected to grow 13.5 per cent, the highest rate globally. “This growth is supported by a clear demand-supply imbalance and a positive economic backdrop,” Knight Frank said in its latest report.

However, despite the ongoing boom in sales and the consistent upswing in value across all sectors, Dubai’s residential unit prices remained 15 per cent lower than their 2014 peak.

In the first quarter, buoyed by an upsurge in demand from buyers, the residential market values in Dubai rose by 5.6 per cent, marking the ninth consecutive quarter of growth. The growth was, in particular, driven by strong demand for luxury second homes and the city’s emergence as a global luxury hub, according to data released by the property consultancy.

Branded residential sales, in particular, have seen a sharp rise