The Knight Frank portal has published new analytical data. According to this information, the cost of housing on the famous island, which is considered one of the new wonders of the world, rose again and broke a record. But Palm Jumeirah is already one of the most expensive residential areas in the UAE. Why this happens – let’s try to figure it out together.
Knight Frank’s data informs users that property prices in Palm-Jumeirah have reached a new peak. It would seem that there is no much higher level: the UAE house prices in this area are already considered one of the most expensive. However, statistics show that palm island property price has now reached their highest levels in the last five years.
Demand and new discoveries
The analytical agency experts believe that there are several reasons for the price increase:
- Increased demand. Relaxation of the COVID restrictions in many countries and mass immunizations have spurred the flow of investors sharply, leading to increased demand, and demand, in turn, influenced the increase in prices on such an exclusive site as Palm Jumeirah.
- The opening of the Nakheel shopping mall, a new shopping area, has a positive effect on improvement of the life quality on the island, which also provoked a price leap.
In general, the volume of housing transactions in the emirate jumped by almost 50 percent per quarter . Dubai’s elite housing market also showed incredible growth in the second quarter, and as to the Palm Island, the period was marked by price rise to $ 6,150 per square meter.
Faisal Durrani, head of Middle East Research at Knight Frank, reports on a real boom in Palm Jumeirah’s luxury property sales. In the first half of 2021, only 34 very expensive properties in Dubai were sold – that is residential realty worth more than $ 10 million. And, as many as 19 of these 34 properties are on the island.
Durrani reports that it was the pandemic that led to this demand. People have become more interested in detached housing and luxury properties. The faith in tomorrow was shaken, and many people decided to live in the present, as a result, they began to afford much more than before. Investors also began to invest in more expensive properties to save money without any misgivings of inflation.
Assistance in the selection of housing in the UAE
If you are interested in buying luxury housing in the UAE, we recommend that you ask for help from real estate experts. Emirates.Estate, focusing on your request, will select the best options in the right price range, tell you about the character of each district and help you make the right choice.
Photo by Varun Dubey