According to an analysis of data from the Dubai Land Department by Luxhabitat Sotheby’s International Realty, Dubai’s super-prime residential market witnessed transactions worth 14 billion dirhams in Q1 2023, reflecting a volume reduction of 21.72% QoQ (quarter-on-quarter) over Q4 2022. The super prime luxury market in Q1 2023 currently represents 21.7% of the overall Dubai residential market in Q1 2023 in terms of volume.
Luxhabitat Sotheby’s International Realty has considered the following areas in the analysis with data from the Dubai Land Department that form the super-prime property market – properties sold in Al Barari, Downtown Dubai, Dubai Hills Estate (mansions only), Emirates Hills, Jumeira Bay, Jumeirah Islands, and Palm Jumeirah.
The average price of the super prime property is growing by 27.49% QoQ, with an average price of 25.2 million dirhams with 1,811 units sold.
The other super prime areas that continued to see positive volume sales growth QoQ were Al Barari (167.53% at 926 million dirhams), Downtown Dubai (48.78% at 3.4 billion dirhams), and Emirates Hills (83.35% at 613.6 million dirhams). With 5.7 billion dirhams in super prime sales, the Palm Jumeirah has seen an increased average in price by 17.26% QoQ to 9.5 million dirhams.
Read more: Dubai real estate poised to grow in 2023 amid luxury demand
Chris Whitehead, Managing Partner at Luxhabitat Sotheby’s International Realty said, “Moving into the second quarter we see a continuation of high-volume residential transactions within the super prime luxury segment. This continuity is primarily fuelled by the current lifestyle and wealth shifts being witnessed by incoming European buyers and a recent increased trend from institutional investors moving back into bricks-and-mortar asset classes. Additionally, super prime turnkey properties continue to be in low supply and sellers will dictate pricing and ensure the positive trend required to push the region through the historically slower summer months.”
Jumeira Bay
The average price was highest in Jumeira Bay at 10,594 dirhams per sq ft and the average price of a property at 93.3 million dirhams, despite only 22 units being sold in Q1 2023. Apartments in Jumeira Bay were sold on average at 91.2 million dirhams, reflecting a median price increase of as much as 40%. The most expensive of these was located at Bulgari Lighthouse & Bulgari Resorts & Residences, which also takes the top spot in the most expensive transactions list at 410 million dirhams. Four out of the top ten transactions come from Jumeira Bay. After Jumeira Bay, the price per sq ft was highest in Palm Jumeirah (3,106 dirhams/sqft ft) and Emirates Hills (2,396 /sqft dirhams). The Jumeira Bay sales volume also grew the most at 220% QoQ.
Super prime apartments market
In the super prime market, there were 1,584 apartments sold for a total volume of 9.8 billion dirhams, making it 66% of the volume of the overall prime market. The top three areas accounting for the highest super prime apartment sales volume were Palm Jumeirah (3.7 billion dirhams), Downtown Dubai (3.4 billion dirhams), and Jumeira Bay (1.8 billion dirhams). The average cost of a super prime apartment costs 28.4 million dirhams, which is a 34.62% increase in QoQ. Off-plan super prime sales accounted for 70% of all apartment units sold in Q1 2023.
The super prime villa market
In the super prime villa market, there were 294 villas sold at a total volume of 5.6 billion dirhams. The top three areas accounting for the highest super prime villas sales volume were Palm Jumeirah (1.9 billion dirhams), Dubai Hills Estate (1.6 billion dirhams), and Al Barari (926 million dirhams). The average cost of a super prime villa costs 36.8 million dirhams, which is a 37.2% increase in QoQ. The average price/sq ft of super prime villas has jumped by 53.15% QoQ at 3547 dirhams/sqft. 88% of the super prime villa market sales were on the secondary residential market.
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