Dubai’s prime property market sales volume up 23% in Q2’22

Dubai: The Dubai property market saw sales to the tune of Dh47.3 billion in the second quarter of 2022, a 9.8 per cent growth compared to Dh43.06 billion in the year-ago period, data showed.

A total of 13,857 apartments, 1,836 villas and 4,166 town houses were sold during the period.

The prime real estate category, which includes areas like 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, saw sales volume surge by 23 per cent. A total of 6,893 property transactions took place with a value of Dh21.5 billion, a Luxhabitat Sotheby’s report said.

Areas that showed a significant increase in volume between Q1 and Q2 are Dubai Marina, where sales volume almost doubled from Dh888 million to Dh1.75 billion; Downtown Dubai, where sales almost doubled from Dh2.6 billion to Dh4.8 billion, and Jumeirah Islands, where volume doubled from Dh201 million to Dh402 million.

The top three neighborhoods in terms of sales volume in the prime segment were Palm Jumeirah (Dh4.9 billion), Downtown (Dh4.8 billion), and Business Bay (Dh2.2 billion).

“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,” said George Azar, CEO at Luxhabitat Sotheby’s International Realty.

In the prime real estate market for apartments, the top three areas in terms of sales volume were Downtown Dubai (Dh4.8 billion), Palm Jumeirah (Dh3.7 billion), and Business Bay (Dh2.2 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 per cent compared to the past quarter, with a total sales volume of Dh15.8 billion, up from Dh11.3 billion in Q1. Downtown proved the most popular location for apartment purchases, almost exclusively, where 1,724 apartments were transacted.

While demand for apartments has been on the rise, demand for villas declined by almost 42 per cent 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 per cent and in Jumeirah Golf Estates by 76 per cent.

Though demand was down, average prices were up from Dh9.6 million to Dh11.8 million for prime villas, with the price per average sq. ft increasing from Dh1,857 to Dh2,069. Palm Jumeirah (Dh1.15 billion), Emirates Living (Dh918 million) and Mohammed bin Rashid City (Dh911 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 Dh128 million.

Top 10 residential transactions in Q2 2022