Prime property market sees an increase in average prices by 11.29% with a sales volume growth of 1.11%
Words by Aneesha Rai in The Market · Oct 19th, 2022
●Prime property market sees an increase in average prices by 11.29% with a sales volume growth of 1.11%
● Prices per square feet were highest in Jumeirah followed by Jumeira Bay and Palm Jumeirah
● Highest sales volume increase observed in Jumeirah, Za’abeel and Business Bay
● Sales volume of prime apartments increased in Q3 by 4.75% to AED 16.7 billion
● Investors show a preference for apartments and larger properties with the emergence of new prime neighborhoods such as Za’abeel with high-value sales
Signaling market stabilization, Dubai’s prime residential market saw volume growth in Q3 2022 by 1.11% QoQ (quarter-on-quarter) totaling AED 21.9 billion, with an increase in average prices by 11.29%, with the average price of prime property reaching AED 6.4 million. Reflecting a quarterly increase of 7.06%, a total of 7,552 properties were transacted in Q3 2022 in the Dubai prime residential market, including 6,940 apartments, 316 villas, and 251 townhouses - according to an analysis by LUXHABITAT Sotheby’s International Realty based on data from the Dubai Land Department. Prices per square foot were highest in Jumeirah (AED 10, 942/sq ft) followed by Jumeira Bay (AED 5,305/ sq ft) and Palm Jumeirah (AED 3,018/ sq ft).
The Dubai prime residential market areas used for the analysis included Al Barari, Arabian Ranches, Downtown Dubai, Dubai Marina, Business Bay, Emirates Living, Jumeirah, Jumeira Bay, Jumeirah Beach Residence, Mohammed bin Rashid City, Jumeirah Golf Estates, Jumeirah Islands, Jumeirah Lake Towers, Palm Jumeirah, and Za’abeel. Za’abeel was added to the prime areas list this quarter with the addition of projects such as One Za’abeel, the mixed-use ultra-luxury development, and 1 Residences by wasl Asset Management Group.
Among other insights, neighborhoods such as Jumeirah, MBR City and Arabian Ranches saw investors purchasing residences with larger spaces, with an increase of 86.8%(3,043 sq ft), 16.9% (9,877 sq ft) & 9.1% (4,625 sq ft) respectively in built-up area over last quarter.
The top three areas in terms of sales volume in the prime segment remain unchanged compared to last quarter, with Palm Jumeirah (AED 5.10 billion), Business Bay (AED 3.79 billion) and Downtown Dubai (AED 3.59 billion) proving the most favored locations for prime property buyers.
Prime Apartments Market
In contrast to last quarter, sales of apartments increased by 9.39% and saw a 4.75% increase in sales volume to reach AED 16.7 billion, with off-plan, branded apartments accounting for the largest share in volume.
In the prime overall market, there was a rise in the number of units sold QoQ in MBR City (67.7%), followed by Business Bay (59.84%), and Za’abeel(30.99%). More than a third of overall apartments were sold in Business Bay totaling 2,420 units, with developments such as the Dorchester Collection proving popular, with LUXHABITAT Sotheby’s International Realty selling a 7,779.48 sq ft unit at AED 39.2 million in Q3.
The top three areas accounting for the highest prime apartment sales volume were Palm Jumeirah (AED 3.89 billion), Business Bay (AED 3.79 billion) and Downtown (AED 3.59 billion). While overall apartment sales volume was up, the average cost of a prime apartment was down 9.47% QoQ, at an average of AED 4.1 million.
Off-plan prime apartment sales accounted for the largest proportion of overall sales volume in the prime segment, at a total of AED 10.4 billion reflecting a 24.76% increase over the previous quarter. Many of these sales were driven by ultra-luxurious branded residences, such as Mr.C Residences, One Palm, Six Senses, Atlantis The Royal Resorts & Residences, and AVA, Palm Jumeirah.
While the average cost of a prime apartment was down overall, in the off-plan prime segment, average prices were up 19.6% to reach an average transaction price of AED 8 million.
Prime Villas Market
While villa volume sales meanwhile were down by 9.91% QoQ, their average price was up by 33% to reach AED 4.53 billion. However, with new projects coming up, villas sold in Jumeirah and Jumeira Bay defied this trend, with a substantial 802% (to AED 290 million) and 544% (to AED205 million) increase respectively in sales volume. At the same time, the average transaction price of a prime villa climbed to AED 18.4 million representing an increase of 33% QoQ, with a reported price/sq ft increase of 50% to AED 3.483/sq ft.
The most popular areas for villa transactions in Q3 2022 are Palm Jumeirah (AED 1.1 billion), followed by Emirates Living (AED 867 million) and Mohammed Bin Rashid City (AED 669 million).
Record Sales By Luxhabitat Sotheby's
Featuring among top 10 transactions in Q3 2022, LUXHABITAT Sotheby’s International Realty sold a residential dual plot spanning 46,222 sq ft in Jumeira Bay for AED 180 million sold by Executive Partner Dr Taieser al Saati and a villa on Palm Jumeirah for AED 145 million sold by Executive Partner, Honey Deylami. Other significant transactions by the luxury property brokerage in Q3 2022 include three Emirates Hills villas collectively for AED 158 million and a record-breaking resale for a 4- bedroom apartment at One Palm for AED 56 million, among several others.
Read the rest of the press release here.