Demand For Apartments Increased By 40% In The Upscale Residential Market, Outpacing That For Villas.
In the 2nd quarter of 2022, sales in the Dubai real estate market totaled Dh47.3 billion. Up 9.8% from Dh43.06 billion in the corresponding quarter the previous year, according to data. 4,166 townhouses, 1,836 villas, and 13,857 apartments in total were sold during that time.
The volume of sales in the upscale real estate segment, which includes the communities of Arabian Ranches, Al Barari, Downtown Dubai, Dubai Marina, Jumeirah Golf Estates, Business Bay, Emirates Living, Mohammed bin Rashid City, Jumeirah Islands, Jumeirah, Jumeirah Lake Towers, Jumeirah Beach Residence, Jumeira Bay, and Palm Jumeirah, increased by 23%. According to a Luxhabitat Sotheby’s report, there were 6,893 property transactions totaling Dh21.5 billion.
Dubai Marina, Downtown Dubai, and Jumeirah Islands all experienced significant volume growth between Q1 and Q2. With sales almost doubling from Dh888 million -Dh1.75 billion, Dh2.6 billion to Dh4.8 billion, and Dh201 million to Dh402 million. In terms of sales volume in the prime segment, the top three neighborhoods were Downtown (Dh4.8 billion), Palm Jumeirah (Dh4.9 billion), and Business Bay (Dh2.2 billion).
“Dubai’s real estate market continues to draw high net worth buyers. From all over the world as it displays signs of positive but also sustained growth. Despite the geopolitical and economic unpredictability that many markets around the world are experiencing, Dubai remains a model of resiliency. In recent months, we are seeing investors from the UK, India, and Germany driving demand. With many of our buyers looking for ready properties and branded addresses. We anticipate demand to remain steady into q3 of this year given that property is a reliable hedge against rampant inflation.
Top three regions in terms of sales volume for apartments in the upscale real estate market were Palm Jumeirah (Dh3.7 billion), Downtown (Dh4.8 billion), & Business Bay (Dh2.2 billion). Demand for apartments was higher than that for villas. Both generally and in the luxury market. In the case of the former, apartment sales volumes grew by 40% compared to the past quarter. With a total sales volume of Dh15.8 billion, up from Dh11.3 billion in Q1. With 1,724 apartments sold, Downtown was almost exclusively the most popular area for apartment sales.
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 the number of units sold. Bucking the trend, however, were villas in the secondary market. Where sales volume was up in the neighborhoods of Jumeirah Islands by 99.9 percent and Jumeirah Golf Estates by 76%.
Even though there was less demand, prime villas’ average prices increased from Dh9.6 million to Dh11.8 million, and the cost per sq. ft. rose from Dh1857 to Dh2069. The most common locations for prime villa transactions were Emirates Living (Dh918 million), Palm Jumeirah (Dh1.15 billion), & Mohammed bin Rashid City (Dh911 million). The most expensive property sold by Luxhabitat Sotheby’s in Q2 was a 34,113 sq. ft. mansion in Dubai Hills Grove on the “Street of Dreams,” which was worth Dh128 million.