Dubai: An apartment at the “Il Primo” in Opera District at the Downtown was the costliest deal in Dubai’s property market during the second quarter of this year, fetching a handsome Dh43.09 million for the 11,550 square foot unit.
A Dh31.5 million deal for a unit at The One on the Palm came in second, ahead of a Dh24.99 million transaction on a Bvlgari home in Jumeira Bay, according to figures released by Luxhabitat, the estate agents.
The first half of the year has seen a marked improvement in demand for high-end residential real estate in Dubai.
It was also reflected in the deal prices notched up by luxury villas — the priciest one was for Dh40 million for a 1,342-square metre (14,451 square feet) home located on the fronds at the Palm.
In fact, the Palm was the location for three of the top five deals in the period from April to end June. It is quite a contrast from the deal flow seen for the better part of last year, when most of the pricey villa deals were conducted at Emirates Hills.
Luxhabitat’s data suggests the prime residential market in the second quarter 2018 accounted for Dh3.5 billion, with “secondary villa sales volumes double (that of) off-plan sales, continuing the trend from the last two quarters”. (The numbers are based on data derived from 13 upscale freehold clusters in Dubai.)
The three top performing areas based on sales volume were Business Bay (with Dh2.3 billion), Mohammad Bin Rashid City (Dh1.9 billion) and Dubai Marina (Dh1.2 billion).
The second half of the year could see MBR City pull in greater demand, as projects such as Dubai Hills Estate and those from Sobha Properties head for the finish-line.
This sentiment is also in evidence for The One, the Omniyat development which is making steady progress on the construction side. The One currently holds the record for the costliest apartment deal to date, for Dh102 million, which was recorded late last year.
But demand for ready properties continues to make headway. And developers who held back sales until completion are starting to see dividends from being patient. Among their ranks is Innovate Living, which recently completed its Palme Couture Residences on the Palm and with prices from Dh18 million.
According to Luxhabitat, “secondary market transactions remained relatively stable. Over 1,400 villas and 6,652 apartments were transacted within the second quarter in the overall residential market.”
It reckons volumes in the secondary market at Dh12.1 billion compared to Dh14.4 billion in the first quarter of 2018.
“In comparison, the off-plan market activity has continued to stabilise, with a few new launches during this period,” the report adds. “Off-plan volumes dropped almost 28 per cent from the previous quarter to Dh5.8 billion.”