On analysis of data by REIDIN, Luxhabitat reveals that despite underperformance of the secondary prime residential market, the average price per square feet remained flat. The prime residential market is composed of properties that lie on the high end spectrum of the Dubai residential market. Twelve key areas form that part of this classification: Al Barari, Arabian Ranches, Downtown Dubai, Dubai Marina, Emirates Hills, Jumeirah, Jumeirah Beach Residence, Jumeirah Golf Estates, Jumeirah Islands, Jumeirah Lakes Towers, Palm Jumeirah, The Lakes, Springs and Meadows, & Victory Heights.
As of Q2, the price/sq ft for prime residences are AED 1,441 per sqft. The prices are at similar levels since Q2 2016 around the AED 1,400 per sqft mark.
The total volume of transactions in Q3 2017 was AED 1.9 billion. 63% of the total volume of transactions in Q3 were for apartments, with the Dubai Marina transacting approximately AED 363 million, followed by the Palm Jumeirah (AED 218 million) and Downtown Dubai (AED 160 million)
TOP 5 VILLA TRANSACTIONS in Q3 2017
| Development | Price | Average BUA (Built Up Area) |
| Emirates Hills | 95,000,000 | 22,780 |
| Emirates Hills | 60,000,000 | 19,982 |
| Palm Jumeirah | 27,500,000 | 7,200 |
| Palm Jumeirah | 22,500,000 | 7,294 |
| Emirates Hills | 20,000,000 | 10,588 |
Source: REIDIN/ Land Department, Luxhabitat Prime Residential Secondary Market Analysis, Oct 2017
In terms of the villa market, the total volume was AED 688 million. 71% of the transactions came from the Emirates Living areas, which includes Emirates Hills, Springs and the Meadows, and The Lakes. The most expensive villa transacted was a 22,780 BUA square feet villa in Emirates Hills for AED 95 million. The Emirates Hills area alone transacted AED 107 million.
TOP 5 APARTMENT TRANSACTIONS in Q3 2017
| Development | Price | Average BUA (Built Up Area) |
| Elite Residence | 25,000,000 | 12,469 |
| Palazzo Versace | 15,000,000 | 5,016 |
| Armani Residence | 9,513,888 | 1,051 |
| Al Bateen | 9,000,000 | 2,945 |
| D1 Tower | 7,458,000 | 6,726 |
Source: REIDIN/ Land Department, Luxhabitat Prime Residential Secondary Market Analysis, Oct 2017
The apartments market had a total volume of approximately AED 1.2 billion in sales. 50% of the sales were from the Dubai Marina area. Two out of the 3 top apartment transactions were in ‘branded developments’ such as Armani and Palazzo Versace, which continues a trend of increasing demand for globally recognized luxury branded properties.
OBSERVATIONS
LUXHABITAT has observed that since Q4 2016, the demand for luxury residential property has shifted to the off-plan market. The advent of new supply of luxury real estate will soon lead to a readjustment of price points on the secondary market. The market seems to have moved to mostly off-plan.
“New locations such as CityWalk, Bluewaters Island, Bvlgari, Dubai Creek Harbour, and Dubai Hills Estate make both investors and end-users very excited about new stock and the promise of new communities. People are now expecting an upgrade in quality since a lot of the existing stock look a bit aged and the price levels are more or less the same as a new stock when upgraded. End-users need to decide if they need something immediate or not. 80% of the off-plan luxury market are going to investors who are hoping for capital appreciation. Off-plan properties also have the added advantage of flexible payment plans.” Says Alexander von-Sayn Wittgenstein, Luxury Sales Director at Luxhabitat.
