Dubai: Prices and sales of villas in key areas of the emirate continued to rise in June. Figures show a 10 per cent increase in residential property prices this year to June.
According to the CBRE report on the Dubai market, apartment prices increased by nine percent and villa prices by 19 percent. On a monthly basis, apartment prices across Dubai rose by 0.1 per cent, while villa prices rose by more than 1 per cent.
The total transactions this year also jump to the highest level. Till June, 38,901 transactions were done. This is the year with the highest number of transactions since 2009. Despite the rise in interest rates, there has been no change in loan transactions. Dubai’s real estate market continues to show no signs of slowing down amid challenges posed by global economic problems and inflation. Experts in the real estate sector point out that the average transaction price has been increasing steadily since the end of the Covid restrictions.
Palm Jumeirah, Emirates Hills, District One and Dubai Hills recorded a month-on-month increase of over four percent. June is the third month in which Palm Jumeirah has seen an increase of almost five percent compared to the previous month. The reason is that the demand has increased here. Palm Jumeirah has the highest price per square foot for villas. In the apartment segment, Dubai Silicon Oasis posted a 3.6 percent increase in June, while Jebel Ali posted a 4 percent increase.
Earlier this year, a villa in Palm Jumeirah was sold for Dh28 crore, setting a new record. Market watchers believe that there is a possibility that a villa can sell up to Rs 30 crore.
New residence systems including golden visa and being able to deal with Covid properly are the factors that stimulated the real estate market. Dubai has become a preferred city for investors and businessmen as a positive factor. In the coming months, the region is expected to witness heavy rains.