Prices in Dubai’s freehold residential market rose 4.8% in the second quarter, with annual gains hitting 24%, Knight Frank data shows.

Apartment prices have increased 21% from January 2020 until August 2023 to an average of AED 1,290 per square foot, according to the British real estate consultancy.

Property values for villas, which make up Dubai’s most sought-after homes, jumped 51% over the same period to roughly AED 1,520 per square foot.

Strong and continued demand from global buyers, as well as locals, is fueling price increases, Knight Frank said in its report. Luxury ready-built homes are the main driver.

“Dubai real estate shows no signs of slowing as all indicators point to more inflation ahead,” said Faisal Durrani, head of Middle East and Africa research.

Premium areas saw outsized gains, with prices in Jumeirah Bay Island, Emirates Hills and Palm Jumeirah climbing 11.6% in the second quarter after rising 125% since January 2020.

In other data, Dubai Land Department registered 588 mortgages and deals valued at AED 1.54 bn on Monday, including 25 land pledges for AED 344.68 mn.

Two off-plan villa sales in the Tilal Al Ghaf development totalled AED 157 mn. Mortgages reached AED 261.58 mn as donations rose to AED 233.14 mn.