Prices of luxury properties in Dubai fell by 6% in the first three months of this year, with an average cost of prime property at Dh4.5 million.
Based on the Dubai Land Department data, the prime residential market in the Emirates witnessed a minor increase in volume in Q1 2022 of 1.03% at Dh17.28 billion compared to the last quarter.
Almost 5,258 apartments and 742 mansions (villas) were sold in Q1 2022 in the Dubai premium residential market.
The major three areas in terms of sales volume were Mohammed Bin Rashid City at Dh3.19 billion (retaining the top position), Palm Jumeirah at Dh3.10 billion, and Downtown Dubai at Dh 2.6 billion.
In the premium residential market, the Jumeirah Islands region sales have more than doubled from Dh90 million to Dh201 million, as observed by Mohammed Bin Rashid City and Al Barari.
“The present market has seen increased activity from continental European clientele. Shell and core villas are among the largest demanded properties on which end users are looking to put their signatures on.”
Chris Whitehead, the managing partner at Luxhabitat Sotheby’s International Realty, said, “Second only to off-plan branded homes reselling for most increased premiums recorded so far-fetching cost tags of up to Dh6,800 per square foot.”
5 Highest Prime Residential Regions as per Sales Volume
- Prime Residential Area Rates in AED
1 Business Bay 2,327,138,692
2 Palm Jumeirah 3,100,671,829
3 Mohammed bin Rashid City 3,197,029,066
4 Downtown Dubai 2,608,710,673
5 Emirates Living 1,182,562,944
The prime residential market has increased volume by 32.31% quarter-on-quarter, showing raised villa purchases at a volume of Dh6.1 billion.
The previous quarter registered a Dh4.1 billion sales volume with an average price of Dh10.6 million for a mansion.
The current average transaction price for a mansion in Q1 2022 is Dh9.6 million.
The most famous sites for villa transactions in Q1 2022 are Mohammed bin Rashid City, followed by Palm Jumeirah and Emirates Living.
The sales volume of apartments dropped by 10% to Dh10.9 billion. The average prime apartment currently costs around Dh2.4 million, with an average price per square foot of Dh1,431. Downtown Dubai, Business Bay, and Palm Jumeirah were Favourable areas to purchase apartments.