Dubai’s prime real estate sales grow 23% to $5.85bln in Q2

PHOTO

Dubai’s prime real estate sector continued to sustain its growth, with the sales volume surging by 23% as a total of 6,893 property transactions worth AED21.5 billion ($5.85 billion) took place in Q2, says an analysis by Luxhabitat Sotheby’s.

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 AED47 billion.

Prime residential market

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 AED888 million to AED1.75 billion; in Downtown Dubai, where sales also almost doubled from AED2.6 billion to AED4.8 billion, and Jumeirah Islands, where volume doubled from AED201 million to AED402 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.

The prime market - apartments

In the prime real estate market for apartments, the top three areas in terms of sales volume were Downtown Dubai (AED4.8 billion), Palm Jumeirah (AED3.7 billion), and Business Bay (AED2.2 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% compared to the past quarter, with a total sales volume of AED15.8 billion, up from AED11.3 billion in Q1. Downtown proved the most popular location for apartment purchases, almost exclusively, where 1,724 apartments were transacted.

The prime 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 AED9.6 million to AED11.8 million for prime villas, with the price per average sq. ft increasing from AED1,857 to AED2,069. Palm Jumeirah (AED1.15 billion), Emirates Living (918 million) and Mohammed bin Rashid City (AED911 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 AED128 million, also making it the most expensive villa sold in Dubai in Q2 2022.