High net worth investors are driving up Dubai home prices.
According to a LUHABITAT Sotheby’s International Realty examination of Dubai Land Department statistics, ultra-high net-worth investors in desirable neighbourhoods have more than quadrupled average apartment prices. In the fourth quarter of 2022, Dubai’s premier residential market saw deals worth more over AED30 billion.
The average price of houses in premium locations climbed by 8.72 percent year on year, while the number of units sold jumped by 230.24 percent year on year.
In Q4 2022, Jumeira Bay witnessed the highest pricing of AED6996 per square foot and the average price of a home of AED45.7 million, with 14 units sold. Jumeira Bay apartments sold for an average of AED64.9 million, representing a median price gain of 297 percent.
Bulgari Lighthouse and Bulgari Resorts & Residences were the most costly properties in Jumeira Bay. Following Jumeira Bay, the highest points are found at Palm Jumeirah and Za’abeel.
“The past quarter was defined by substantial increase in price in select premium locations. “This significant spike in prices is being driven mostly by demand in high-end branded houses, with investors prepared to pay any price in some of the chosen prime regions such as Jumeira Bay,” said Chris Whitehead, Managing Partner at LUXHABITAT Sotheby’s International Realty.
“We have been engaging together with developers to guarantee greater availability of new apartments that are suited to the stringent standards of these investors. When it pertains to villas, investors are looking for ready-to-move-in apartments in coastal regions like Palm Jumeirah, with some deals above the AED140 million price threshold,” he noted.
Palm Jumeirah continues to have the highest volume sales growth, with a 117.36 percent gain in the third quarter, followed by Al Barari and Jumeirah Islands. Palm Jumeirah also has the highest off-plan and secondary volume sales increase.
MBR City dominated the off-plan premier property market with the most units sold, while Dubai Marina lead the secondary market with 835 units sold.
Market for high-end flats
Apartments sold the most units, with a total value of AED24.08 billion. The most units were sold in Business Bay. Palm Jumeirah, Business Bay, and MBR City were the top three regions in terms of premier apartment sales volume.
Market for prime villas
The villa market rose in terms of volume sales, with Emirates Living selling the most units. Palm Jumeirah, on the other hand, achieved the highest sales volume of AED2.56 billion. Off-plan deals accounted for 62.6 percent of all premier area villa sales.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
