Dubai's Palm Jumeirah home sales, prices hit highest in recent years

Palm Jumeirah property sales and prices have hit their highest level in the last few years, buoyed by strong demand from affluent buyers in search of luxurious homes, according to Knight Frank’s latest analysis. 

The average transacted prices for residential units on the man-made island stood at 2,100 dirhams ($571) per square foot in the second quarter of 2021, the highest level in over five years, the global property consultancy said. The premium location also accounted for more than half of the multimillion-dollar homes sold during the first half of the year. 

“The boom in ultra-prime home sales across Dubai is nowhere better reflected on the Palm Jumeirah,” said Faisal Durrani, partner and head of Middle East research at Knight Frank.  

“19 of the 34 $10 million-plus homes sold in Dubai between January and June were on the Palm Jumeirah.” 

According to Durrani, buyers are particularly interested in acquiring villas, as the COVID-19 pandemic has highlighted the value of personal space and triggered a shift to hybrid working models. 

“Families are seeking accommodation that delivers on space, luxury and exclusivity. This accelerating trend has driven average transacted villa prices on the Palm Jumeirah up by an impressive 40 percent over the last four years,” Durrani pointed out. 

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Last March, a residential property at One100 Palm was snapped up for $30 million, one of the most expensive deals this year. 

“The Palm Jumeirah is really coming into its own. The recent opening of Nakheel Mall has helped cement the amenities available to the island’s residents, helping to create not only an exclusive enclave, but one that epitomises the very definition of a 15-minute city,” said Durrani. 

Within the apartment category, at least 300 flats were sold in the second quarter, the highest since the third quarter of 2015. 

“There has certainly been a very healthy number of transactions for Q2 2021 with record-breaking months and sales prices. Apartment sales make up a large proportion of transactions with a number of high-value transactions of the boutique developments,” said Yasin Valimulla, associate partner at Knight Frank Middle East.