The current market has seen a surge in activity from continental European clientele
Words by Aneesha Rai in The Market · Apr 21st, 2022
Dubai’s prime residential market received a minimal surge in volume in Q1 2022 by 1.03% QoQ at AED 17.28 billion compared to the previous quarter. The prime residential market also saw a contraction in prices by 6%, with an average price of prime property at AED 4.5 million. 5,258 apartments and 742 villas were transacted in Q1 2022 in the Dubai prime residential market, according to analysis by LUXHABITAT Sotheby’s based on data from the Dubai Land Department. 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 and Palm Jumeirah.
The top 3 areas in terms of sales volume were Mohammed Bin Rashid City (AED 3.19 billion), Palm Jumeirah (AED 3.10 billion) and Downtown Dubai (AED 2.6 billion). In the prime residential market, the Jumeirah Islands area showed 2.2x in growth of sales from AED 90 million to AED 201 million, followed by Mohammed Bin Rashid city (1.8x in growth of sales from AED 1.7 billion to AED 3.1 billion) and Al Barari (1.6x growth in sales from AED 373 million to AED 620 million).
"The current market has seen a surge in activity from continental European clientele. Shell and core villas are among the highest demanded properties which end users are looking to put their signature on. Second only to off plan branded residences which are reselling for highest premiums recorded so far fetching price tags of upto AED 6,800 per square foot." Says Chris Whitehead, Managing Partner at LUXHABITAT Sotheby’s International Realty.
Prime Villa Market
The prime villa market received an increase in volumes QoQ of 32.31%, indicating increased villa purchases at a volume of AED 6.1 billion. The last quarter reported AED 4.1 billion sales volume with an average price of AED 10.6 million for a villa. The current average transaction price for a villa in Q1 2022 is AED 9.6 million. The most popular areas for villa transactions in Q1 2022 are Mohammed bin Rashid City (AED 1.7 billion), followed by Palm Jumeirah (AED 1.2 billion) and Emirates Living (AED 1.08 billion).
Prime Apartments Market
Sales volume of apartments decreased by 10% to AED 10.9 billion. The average prime apartment now costs approximately AED 2.4 million, with an average price per square feet at AED 1,431. Popular areas to purchase apartments were Downtown Dubai (AED 2.6 billion), Business Bay (AED 2.3 billion) and Palm Jumeirah (AED 1.8 billion).
Out of the top 10 transactions in Q1 2022, LUXHABITAT Sotheby’s International Realty is proud to say it has sold the Emirates Hills Villa in Sector L at AED 75 million. The exquisite mansion was sold in 2021 and re-sold in 2022 by Managing Director, Leigh Borg. The villa was designed by world-class architects KOBI KARP and 30,000 sq.ft. of built-up area. It features a magnificent chandelier with over 500 hand-blown glass spheres and crystal butterflies designed and executed by Preciosa lighting and a 50-year-old Bonsai tree in the atrium. Every detail of the mansion was planned and executed by top-notch designers with high-class finishes, handcrafted materials, and custom-made furnishings.
Read rest of the press release here.