The prices are expected to rise in the coming months, as per experts
Waterfront villa prices will continue to increase in Dubai due to limited supply while apartments have approached a new pricing plateau, say industry executives. The waterfront property prices in Dubai have seen one of the highest increases in the post-pandemic period, more than doubling in prime locations such as Palm Jumeirah, Bluewaters Island and Jumeirah Bay Island.
Matthew Gregory, branch director, Prime by Betterhomes, said when price increases for villas and apartments in Palm Jumeirah are examined over the past year, contrasting trends have been observed. “Villas have witnessed a remarkable 30 per cent surge in price per square foot, representing incredible growth within a short span of time. On the other hand, apartments have experienced a more modest average growth of just two per cent. This data suggests that apartments may be approaching a new pricing plateau, indicating a potential stabilisation in their market value.
In contrast, due to limited supply, villas still have room for further price appreciation before reaching a similar plateau,” said Gregory. Meanwhile, the upcoming mega project Palm Jebel Ali, a major waterfront community, will also serve as a significant publicity asset for Dubai in the years to come, wooing high-end investors from around the world as it has the potential to become another self-contained city within Dubai.
Highlighting the increase in waterfront real estate prices, Laura Adams, residential sales director, Provident Real Estate, said Bluewaters Island property properties in Q3 2020 averaged around Dh1,916 per sqft which rose to Dh3,874 per sqft in Q2 2023. Similarly, the average price in Beach Vista prior to the pandemic was Dh1,855 per sqft which stood at Dh3,607 at the end of the second quarter of 2023.
Quoting a UBS report, she said Dubai property prices are still fairly-valued. “Prices in Dubai's major communities won't decrease in the coming year, but they also are unlikely to rise substantially higher than the current prices. Luxury projects such as Royal Atlantis are still in huge demand which drives up cost,” she added.
