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In The Upscale Residential Market, The Popularity Of Apartments Increased By 40% More Than That Of Villas.
Sales in the Dubai property market were Dh47.3 billion in the q2 of 2022. Data showed a 9.8% increase over Dh43.06 billion in the same period last year. During that time, 13,857 apartments, 1,836 villas, and 4,166 townhouses were sold. Jumeirah Beach Residence, Mohammed bin Rashid City, Downtown Dubai, Dubai Marina, Al Barari, Arabian Ranches, Business Bay, Emirates Living, Jumeirah, Jumeirah Golf Estates, Jumeirah Islands, Jumeirah Lake Towers, Jumeira Bay, and Palm Jumeirah are just a few of the prime real estate markets that saw a 23% increase in sales volume. 6,893 real estate transactions totaling Dh21.5 billion were completed, according to a Luxhabitat Sotheby’s report.
Dubai Marina, where sales volume nearly doubled from Dh888 million to Dh1.75 billion; Downtown Dubai, in which sales volume nearly doubled from Dh2.6 billion to Dh4.8 billion. Moreover, Jumeirah Islands, where volume nearly doubled from Dh201 million to Dh402 million. Palm Jumeirah (Dh4.9 billion), Downtown (Dh4.8 billion), & Business Bay were the top three communities in terms of prime sales volume (Dh2.2 billion).
“Dubai’s property market continues to lure high net worth investors from around the world, indicating signs of positive & sustained growth.” While many markets around the world face geopolitical and economic uncertainty, Dubai remains a beacon of resilience. Investors from the United Kingdom, India, and Germany have been driving demand in recent months. With many of buyers looking for ready-to-move-in properties and labeled addresses. Of course, with property serving as a safe haven against high inflation. Folks expect demand to remain consistent into the q3 of this year,” said George Azar, CEO of Luxhabitat Sotheby’s International Realty.
The top three areas in terms of sales volume in the prime real estate market for apartments were Palm Jumeirah (Dh3.7 billion), Downtown Dubai (Dh4.8 billion), & Business Bay (Dh2.2 billion). Apartment demand outstripped villa demand, both overall and in the prime sector. In the case of the former, apartment sales volumes increased by 40% compared to the previous quarter. With a total volume of Dh15.8 billion, up from Dh11.3 billion in Q1. Downtown was almost entirely the most popular spot for apartment purchases, with 1,724 apartments sold.
While the popularity of apartments has been increasing, demand for villas in the prime sector fell by nearly 42% in Q2 compared to Q1 based on the number of units sold. However, villas in the secondary market defied the trend. With sales volume increasing by 99.9% in Jumeirah Islands neighborhoods and 76% in Jumeirah Golf Estates.
Despite lower demand, average prices for prime villas increased from Dh9.6 million to Dh11.8 million, with the price per average sq. ft. increasing from Dh1857 to Dh2069. Emirates Living (Dh918 million), Palm Jumeirah (Dh1.15 billion), and Mohammed bin Rashid City (Dh911 million) were among the most popular areas for prime villa transactions. The most expensive property sold by Luxhabitat Sotheby’s International Realty in Q2 was a 34,113 sq. ft. Dubai Hills Grove mansion on the ‘Street of Dreams,’ valued at Dh128 million.
