Dubai: Luxury property prices drop 6% in Q1

Emirate's prime residential market saw minimal surge in volume in same quarter

Waheed Abbas

Published: Wed 20 Apr 2022, 10:54 AM

Last updated: Wed 20 Apr 2022, 11:08 AM

Luxury property prices in Dubai slipped by six per cent in the first quarter of 2022, with an average price of prime property at Dh4.5 million.

According to an analysis by Luxhabitat Sotheby, based on data from the Dubai Land Department, the Emirate's prime residential market saw a minimal surge in volume in Q1 2022 of 1.03 per cent at Dh17.28 billion compared to the previous quarter.

Around 5,258 apartments and 742 villas were sold in Q1 2022 in the Dubai prime residential market.

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The top three areas in terms of sales volume were Mohammed Bin Rashid City at Dh3.19 billion, Palm Jumeirah at Dh3.10 billion and Downtown Dubai at Dh 2.6 billion.

In the prime residential market, the Jumeirah Islands area sales more than doubled from Dh90 million to Dh201 million, followed by Mohammed Bin Rashid City and Al Barari.

"The current market has seen a surge in activity from continental European clientele. Shell and core villas are among the highest demanded properties on which end users are looking to put their signatures on.

"Second only to off-plan branded residences which are reselling for highest premiums recorded so far-fetching price tags of up to Dh6,800 per square foot," said Chris Whitehead, managing partner at Luxhabitat Sotheby's International Realty.

5 BEST PRIME RESIDENTIAL AREAS IN TERMS OF SALES VOLUME

#	Prime Residential Area	Price in AED
1	Mohammed bin Rashid City	3,197,029,066
2	Palm Jumeirah	3,100,671,829
3	Downtown Dubai	2,608,710,673
4	Business Bay	2,327,138,692
5	Emirates Living	1,182,562,944

Source: LUXHABITAT Sotheby’s x Property Monitor, April 2022

The prime villa market increased volumes by 32.31 per cent quarter-on-quarter, indicating increased villa purchases at a volume of Dh6.1 billion.

The last quarter reported a Dh4.1 billion sales volume with an average price of Dh10.6 million for a villa.

The current average transaction price for a villa in Q1 2022 is Dh9.6 million.

The most popular areas for villa transactions in Q1 2022 are Mohammed bin Rashid City, followed by Palm Jumeirah and Emirates Living.

Sales volume of apartments decreased by 10 per cent to Dh10.9 billion. The average prime apartment now costs approximately Dh2.4 million, with an average price per square foot of Dh1,431. Popular areas to purchase apartments were Downtown Dubai, Business Bay and Palm Jumeirah.

TOP 10 RESIDENTIAL TRANSACTIONS IN Q1 2022

#	Area	Price in AED	Built-up area, in sqft
1	Palm Jumeirah, The fronds,Frond N	280,000,000	33,000
2	Jumeirah Bay Island	88,200,000	16,014
3	Palm Jumeirah, The fronds,Frond J	87,000,000	13,476
4	Emirates Hills Villa –Sector L	75,000,000	32,932
5	Downtown, Burj Khalifa Apartment	73,000,000	20,979
6	Bussiness Bay,Dorchester Collection Dubai	68,900,000	17,712
7	Palm Jumeirah,The Royal Atlantis	62,920,000	7,115
8	Emirates Hills Villa –Sector E	62,000,000	25,775
9	Emirates Hills Villa –Sector P	61,000,000	34,621
10	Palm Jumeirah, The Crescent	60,000,000	56,379