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Here are some insights on the prime residential market in Q2.
Words by Aneesha Rai in The Market · Jul 21st, 2017
Dubai’s secondary prime residential market saw an upturn in Q2 due to an increase in transaction volume by 4% in comparison to Q1. View our infographic below.
On analysis of data by REIDIN, Luxhabitat reveals that the performance of the secondary prime residential market increased by 4% in Q1 vs. Q2. According to Luxhabitat, the prime residential market is composed of properties that lie on the high end spectrum of the Dubai residential market. Luxhabitat recognises 12 key areas that form part of this classification; the areas are Al Barari, Arabian Ranches, Downtown Dubai, Dubai Marina, Emirates Hills, Jumeirah, Jumeirah Beach Residence, Jumeirah Golf Estates, Jumeirah Islands, Jumeirah Lakes Towers, Palm Jumeirah, The Lakes, Springs and Meadows, & Victory Heights.
Overall, we are seeing a flattening of price evolution. As of Q2, the price/sq ft for prime residences are AED 1,482 per sqft. The prices are at similar levels as of Q4 2015. An upward trend was observed from Q3 in 2016 and since then, the prices are steadily rising.
The total volume of transactions in Q2 2017 was AED 3.6 billion. There seems to be an increase in interest for buying villas in these prime areas; there was a 7% increase in volume of transactions per villa from the previous quarter. 62% of the total volume of transactions in Q2 were for apartments, with the Palm Jumeirah transacting approximately AED 771 million, followed by Dubai Marina (AED 667 million) and Downtown Dubai (AED 340 million).
In terms of the villa market, the total volume was AED 1.3 billion. 50% of the transactions came from the Emirates Living areas, which includes Emirates Hills, Springs and the Meadows, and The Lakes. The most expensive villa transacted was a 25,812 BUA square feet villa in Emirates Hills for AED 90 million. The Emirates Hills area alone transacted AED 270 million.
Off-plan projects released in Q2 include Park Heights I & II in Dubai Hills Estate by EMAAR, Downtown Views II (EMAAR) & DT1 (Ellington Group) in Downtown Dubai, and Creek Heights I & Harbour Gate II by EMAAR in Dubai Creek Harbour.
Main Photo by Keit Trysh on Unsplash