Durrani also predicts that demand will continue to increase RIYADH: The sale of ultra-prime homes in Dubai — those costing upwards of $10 million — made a post-COVID-19 comeback, totaling 93 for 2021. The Dubai real estate market overall recorded more than 52,000 apartment and villa transactions in 2021, totaling AED 114.2 billion ($31.3 billion) in 2021, more than it did in 2019 and 2020 combined. Faisal Durrani, partner and head of Middle East research at Knight Frank, said: “The international elite continue to have an insatiable appetite for Dubai’s most luxurious homes, and this has driven $10 million home sales to an all-time record high of 93 in 2021; more than the last 5 years combined. Durrani added that the 2021 sales account for 39 percent of ultra-prime home sales in Dubai since the year 2010. It highlights the phenomenal depth of demand at the top end of the market. “And these ultra high net worth individuals continue to pour into the city’s luxury residential market from locations such as India, Russia and Europe, including buyers from Switzerland and Monaco,” Durrani said. In the mainstream market, Knight Frank"s analysis shows that the picture is quite different, especially when it comes to apartments. As working habits shift, the pandemic continues to fuel the race for space in apartments. The demand for large homes remains high, as shown by the rise in sales of villas. The number of villas sold on the market increased by 29 percent in Q4 2021. Since the start of the pandemic, the price of villas has risen by around 22 percent. Knight Frank"s research shows that apartment prices did not increase by the same amount, over the same period. Durrani also predicts that demand will continue to increase, since only 3.6 percent of what"s planned will be delivered in prime submarkets by 2022. Therefore, there is still room for price expansion in this segment of the market, he said. The report also noted that Dubai is only over a year into this third cycle, and prices are still 26.6 percent below their last peak. With previous cycles having lasted almost a decade, it is highly predictable that prices will begin stagnating, rather than falling.