Dubai's prime real estate sector continues to sustain its growth.
Words by Aneesha Rai in The Market · Aug 18th, 2022
Dubai’s prime real estate sector continues to sustain its growth, based on an analysis by LUXHABITAT Sotheby’s of recently released data from the Dubai Land Department. According to property transactions in Dubai for Q2 2022, the overall market volume surged by close to 10% when compared to Q1 2022, with a total of 13,857 apartments, 1,836 villas and 4,166 town houses sold at a total value of AED 47 billion.
Prime Residential Market
In the case of the prime real estate category, sales volume surged by 23% with a total of 6,893 properties transacted with a value of AED 21.5 billion. The Dubai prime residential market areas used for the analysis included Al Barari, Arabian Ranches, Downtown Dubai, Dubai Marina, Business Bay, Emirates Living, Jumeirah, Jumeirah Beach Residence, Mohammed bin Rashid City, Jumeirah Golf Estates, Jumeirah Islands, Jumeirah Lake Towers, Jumeira Bay and Palm Jumeirah.
Areas that showed a significant increase in volume between Q1 and Q2 include Dubai Marina, where sales volume almost doubled from AED 888 million to AED 1.75 billion; in Downtown Dubai, where sales also almost doubled from AED 2.6 billion to AED 4.8 billion, and Jumeirah Islands, where volume doubled from AED 201 million to AED 402 million.
"Showing signs of positive and sustained growth, Dubai’s real estate sector continues to attract high net worth investors from across the globe. While many markets worldwide are facing geopolitical and economic uncertainty, Dubai continues to be a beacon of resilience. In recent months we are seeing investors from UK, India and Germany driving demand, with many of our buyers looking for ready properties and branded addresses. Of course, with property a safe hedge against high inflation, we expect demand to continue along similar line into the third quarter of this year, " says George Azar, CEO at LUXHABITAT Sotheby’s International Realty.
Prime Residential Market Apartments
In the prime real estate market for apartments, the top three areas in terms of sales volume were Downtown Dubai (AED 4.8 billion), Palm Jumeirah (AED 3.7 billion), and Business Bay (AED 2.2 billion) Demand for apartments outstripped that for villas, both in the overall and the prime sector. In the case of the former, apartment sales volumes grew by 40% percent compared to the past quarter, with a total sales volume of AED 15.8 billion, up from AED 11.3 billion in Q1. Downtown proved the most popular location for apartment purchases, almost exclusively, where 1,724 apartments were transacted.
Prime Residential Market Villas
While demand for apartments has been on the rise, demand for villas declined by almost 42% in the prime sector in Q2 compared to Q1, based on number of units sold. Bucking the trend, however, were villas in the secondary market, where sales volume was up in the neighbourhoods of Jumeirah Islands by 99.9% and in Jumeirah Golf Estates by 76%. Though demand was down, average prices were up from AED 9.6 million to AED 11.8 million for prime villas, with the price per average sq. ft increasing from AED 1,857 to AED 2,069. Palm Jumeirah (AED 1.15 billion), Emirates Living (918 million) and Mohammed bin Rashid City (AED 911 million) were the most popular areas for prime villa transactions. The most expensive property to be sold by LUXHABITAT Sotheby’s International Realty in Q2 was a Dubai Hills Grove mansion on the ‘Street of Dreams,’ a 34,113 sq ft property valued at AED 128 million, also making it the most expensive villa sold in Dubai in Q2 2022.
Read the complete press release here.
Read the wider Q2 report here.