Jumeirah Islands has become a new hunting ground for elites choosing to make Dubai their home, joining the ranks of Emirates Hills, Jumeirah Bay Island, and Palm Jumeirah.
The Islands recorded more than 10 per cent of all the deals valued at over Dh10 million over the past three years, which demonstrates that the area is able to hold its value and make it a prime neighbourhood, global real estate consultancy Knight Frank said.
The most expensive home to sell in the man-made island cluster was a 4-bedroom 5,500 square foot home, which was sold for Dh28 million – or Dh5,111 per square foot – in late December 2023. The last 12 months have seen 97 homes changing hands in Jumeirah Islands worth approximately Dh1 billion.
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Will McKintosh, regional partner and head of residential for Mena at Knight Frank, stressed that Dubai is no longer an emerging market, but one that has emerged.
“The growing list of prime residential neighbourhoods is yet another sign of maturity bedding in and it is only a matter of time before other areas such as Tilal Al Ghaf, Jumeirah Golf Estates, Al Barari and/or Blue Waters also make the transition to prime status,” he added.
Due to the high demand for properties on Jumeirah Islands, the number of homes available for sale has declined by 28 per cent over the last 12 months to 279 homes, adding to the 44 per cent fall in prime home listings in the city to around 4,900 properties, said Faisal Durrani, partner and head of research for Mena at Knight Frank.
He added that buyers not only continue to pay record prices for homes in the Islands but are spending similar amounts on refurbishing them, strongly pointing to a longer-term buy-to-hold or buy-to-live mentality that has defined the market for the last four years.
“As we saw throughout the pandemic, the ‘race for space’ underpinned the performance of villa prices in Dubai, which jumped by 17 per cent over the last 12 months and the same has been true for Jumeirah Islands. The other factor contributing to its ascension to the prime club has been the unending surge in demand from international buyers for either waterfront homes, or those that offer access to parks and/or green spaces – and Jumeirah Islands provides both,” said Durrani.
Shehzad Jamal, partner for strategy and consultancy for MEA at Knight Frank, said the aspiration to buy a villa in Dubai rises with levels of net worth, growing from 30 per cent or those with a net worth of $2-5 million to 48 per cent for those with personal wealth levels of over $15 million. This figure climbs further still to 59 per cent amongst global high net worth individuals with a net worth of over $20 million.