Knight Frank: The sale of a villa in Dubai worth more than 120 million dirhams last July

A report by Knight Frank, a real estate research company, showed that the real estate market in Dubai sold 34 homes in the first half of this year, with a total value of 1.24 billion dirhams, with a single transaction exceeding 10 million US dollars (36.7 million dirhams).

The report, which "Emirates Today" obtained a copy of, indicated that the Palm Jumeirah accounted for most of these sales of those luxury homes and villas with 19 homes, with a total value of 697.3 million dirhams.

  In addition, the Knight Frank report indicated that a new record was set in July with the sale of a villa in the Palm Jumeirah to a European buyer at a value of US$32.9 million (AED120.7 million), the second most expensive transaction of the year.

In detail, the latest analysis prepared by the "Knight Frank" company stated that the prices of villas in the Palm Jumeirah in Dubai set a new record, while the number of home sales was the highest in nearly five years.

Faisal Durrani, Partner Member and Head of Middle East Research, Knight Frank, said: “The boom in high-quality home sales in Dubai is best illustrated by the figures reflected in sales on Palm Jumeirah, where average prices traded More than AED 2,100 per square foot. This is the highest level in more than five years. Furthermore, 19 of the 34 homes worth over $10 million were sold between January and June, in Palm Jumeirah."

 He added, “Villas remain in high demand as expatriate residents and investors from around the world live in the most prestigious parts of the city in larger and more luxurious homes. The pandemic has taught us all the importance of personal space and with the shift to hybrid business models emerging as a norm, families are looking for housing. It provides space, luxury and privacy. This accelerating trend has led to an average price increase for villas traded in Palm Jumeirah by 40% over the past four years.”

The Knight Frank report indicates that a new record was set in July with the sale of a villa on the island of "Jumeirah Bay" to a European buyer at a value of 32.9 million US dollars, equivalent to 120.7 million dirhams, which highlights the recovery in the villa market. .

And before that, the sale of a mansion on the island of "Jumeirah Bay", the highest price recorded for a house in 2021 in Palm Jumeirah, where the mansion "One 100 Palm" sold for more than 30 million US dollars in March.

At AED 3,250 per square foot, average prices for villas traded are very close to an all-time high of AED 3,436 per square foot recorded in the third quarter of 2017.

Although the number of villa sales in Palm Jumeirah did not exceed 2% of the total sales of villas in Dubai, villa transactions of 90 transactions achieved 13.5% of the value of villa transactions at the city level of 15.8 billion dirhams during the second quarter.

Durrani said: “It is clear that Palm Jumeirah is thriving. The recent opening of the Nakheel Mall has helped to consolidate the amenities available to the residents of the island, helping not only to create a complex with unique privacy, but making it a shorthand for the city’s heritage 15 km away. A minute from Dubai, which is highly accepted worldwide in the post-pandemic stage.

In addition, the report indicated that apartments in Palm Jumeirah also witnessed a renewed recovery in transactions, as 300 apartments were sold in the second quarter alone;

It is the highest level of sales since the third quarter of 2015. Not only that, but the average apartment deal size is currently nearly Dh1,800 per square foot, the highest level since 2016, according to Knight Frank analysis.

Sales of villas and apartments maintained their strength, and the momentum of the first quarter of 2021 continued, with prices witnessing a sharp rise compared to previous quarters. The villa sector has always proven to have its own market and with many transactions completed, expectations of price increases are increasing as the demand for villas exceeds current display size.

This was evident in both sales and rental transactions.

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