A significant rise in property prices has transformed thousands of Dubai homeowners into "accidental millionaires," according to a recent analysis by global real estate consultancy Knight Frank. The report highlights that nearly one in every five homes in Dubai is now valued at over $1 million, a notable increase from just 6.3% in 2020 to 18.1% today, reads a Khaleej Times report.
Since 2002, 95,000 out of the 530,000 homes sold in Dubai have crossed the $1 million mark in value. Faisal Durrani, partner and head of research for MENA at Knight Frank, revealed that these homes now represent a combined value of AED 822 billion. This surge is attributed to price inflation, with many homes crossing the $1 million threshold without changing ownership.
Property prices in Dubai have been on a sharp upward trajectory, with an 8% rise projected for 2025. House prices in the city are already 19.9% higher than last year, driven by growing demand from new residents and investors. However, Durrani expects the growth rate to moderate in 2025, citing risks such as a potential global economic slowdown.
The luxury villa market, particularly in prime areas like Palm Jumeirah and Jumeirah Islands, has seen values nearly double since 2014. Despite a robust pipeline of 300,000 homes expected by 2029, a villa shortage persists, with only 8,900 new units forecasted by the end of 2024.
Knight Frank warns of a housing supply shortfall as Dubai’s population grows, potentially reaching 8.6 million by 2040.
Bd-pratidin English/ Jisan
