According to an analysis of data from the Dubai Land Department by real estate company Luxhabitat Sotheby, Dubai’s prime residential market witnessed transactions worth 30.7 billion dirhams in Q4 2022, reflecting volume growth of 39.62% QoQ (quarter-on-quarter) over Q3 2022. Growing by 8.72 % QoQ, the average price of a property in prime areas was 6.9 million dirhams with 9836 units sold. The number of units sold also grew by 30.24% QoQ in prime areas.
Read more: Dubai real estate poised to grow in 2023 amid luxury demand
The average price was highest in Jumeira Bay at 6966 dirhams per sq ft and the average price of a property at 45.7 million dirhams, despite only 14 units being sold in Q4 2022. Apartments in Jumeira Bay were sold on average at 64.9 million dirhams, reflecting a median price increase of as much as 297%. The most expensive of these was located at Bulgari Lighthouse & Bulgari Resorts & Residences. After Jumeira Bay, the price per sq ft was highest in Palm Jumeirah and Zabeel. Jumeira Bay also sees several investors looking to build their own homes after purchasing plots. The average size and price of a plot in the area are 15,474.67 sq ft and 72 million dirhams respectively, with Jumeira Bay 434 million dirhams in plot sales alone in Q4 2022.
With 11 billion dirhams in sales, Palm Jumeirah continued to see the most volume sales growth QoQ at 117.36% followed by Al Barari (99.48%) and Jumeirah Islands (83.35%). Palm Jumeirah also led in terms of both off-plan and secondary volume sales growth at 7 billion dirhams and 4 billion dirhams respectively. Seeing 2085 transactions, MBR City saw the highest number of units sold in the off-plan prime market while Dubai Marina led within the secondary market with 835 units.
Prime apartments market
Most units sold were apartments that saw a total volume of 24.08 billion dirhams and a volume growth of 44.18% QoQ. In terms of built-up area (BUA), the apartments sold were larger on average by 152.74%. Business Bay saw the most apartments being sold. The top three areas accounting for the highest prime apartment sales volume were Palm Jumeirah (8.47 billion dirhams), Business Bay (4 billion dirhams), and MBR City (3 billion dirhams). The average cost of a prime area apartment jumped by 93.37%. Off-plan sales accounted for 63. 22% of all apartment units sold in Q4 2022.
Prime villa market
The prime villa market increased in terms of volume sales at 14.42% with Emirates Living seeing the greatest number of units sold at 77 villas. However, Palm Jumeirah saw the highest sales volume at 2.56 billion dirhams. 62.6% of all prime area villas sold were off-plan transactions. Prices of villas dropped by 29.75 % with the average price per sq ft falling by 26.10 %.
