Dubai Prime Residential Market Soars By 22% In 2019

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Over 1,454 villas and 16,522 apartments were transacted in 2019 in the overall prime residential market. Luxhabitat defines the Dubai prime residential market as a residential market composed of properties that lie on the high-end spectrum of the residential market. The real estate brokerage recognizes certain key areas that form part of this classification; the areas are Al Barari, Arabian Ranches, Downtown Dubai, Dubai Marina, Emirates Hills, Jumeirah, Jumeirah Beach Residence, Jumeirah Bay, Mohammed bin Rashid city, Jumeirah Golf Estates, Jumeirah Islands, Jumeirah Lakes Towers, Palm Jumeirah, The Lakes, Meadows, & Victory Heights. The volume of transactions for the overall prime market has grown by 22%to AED 42.3billion from AED 34.4 billion in 2018.

The average price per square foot in the overall prime residential market went down by 3.72%. Currently, the average price per square foot in the overall prime market for villas is AED 1,348 per square foot and for apartments is AED 1,736 per square foot.

The top 3 areas in terms of sales volume in the overall prime residential areas were Mohammed bin Rashid (MBR) City (AED 8 billion), Downtown Dubai (AED 7.9 billion) and Dubai Creek Harbour (AED 4.2 billion). Areas that have received higher volume of sales include Dubai Harbour & Bluewaters Island. Jumeirah Lake Towers (JLT), Jumeirah Golf Estates & the Palm Jumeirah also received higher sales volumes since last year.

SECONDARY PRIME MARKET

Volume of transactions in the secondary prime market slightly dropped to AED 19.3billion from AED 19.5billion in 2018, according to analysis by Luxhabitat based on data by Property Monitor. The three most popular areas for the secondary market were MBR city (AED 3.8 billion), Downtown Dubai (AED 3.1 billion) and Palm Jumeirah (AED 2.7 billion). 66% of overall prime villa transactions took place on the secondary market.

OFF-PLAN PRIME MARKET

Prime off-plan registration volumes almost doubled in transaction volume from 2018 to 2019. It reported an increase from AED 14.7 billion in 2018 to over 20 billion in 2019, making it a 42% increase in transaction volume. There was a 38% increase in number of units sold an average price per transaction recorded at AED 1,761 per square foot. The average price for a prime off-plan villa is AED 4.1 million & for an apartment is 2.5 million.

5 BEST PRIME RESIDENTIAL AREAS IN TERMS OF SALES VOLUME

Area Sales Volume
 

Mohammed bin Rashid city

 

8,016,144,947

 

Downtown Dubai

 

7,935,915,605

 

Dubai Creek Harbour

 

4,249,841,056

 

Business Bay

 

3,596,619,509

 

Dubai Marina

 

3,081,117,130

 

 TOP 10 RESIDENTIAL TRANSACTIONS TO DATE

Development Price Average BUA (Built Up Area)
 

District One Villa, MBR City

 

90,000,000

 

One, Palm Jumeirah penthouse

 

74,000,000

 

24,018

 

Emirates Hills – Sector V

 

64,000,000

 

17,800

 

Il Primo, Downtown Dubai

 

63,412,100

 

33,594

 

Dubai Hills Grove, Dubai Hills

 

60,000,000

 

15,951

 

Frond J Villa, Palm Jumeirah

 

51,000,000

 

9,000

 

Umm Suqeim Villas

 

50,000,000

 

22,500

 

Frond D Villa, Palm Jumeirah

 

47,500,000

 

9,167

 

Emirates Hills Villa- Sector L

 

45,000,000

 

40,876

 

Il Primo, Downtown Dubai

 

43,552,888

 

11,407

 

OUTLOOK FOR 2020

Luxury Sales Director, Andrew Cleator shares his input on what to expect in 2020. “Similar to 2019, it will continue to be very much a buyer’s market with tempting opportunities abound for both end users and seasoned investors alike. In addition, this year I predict a growing hunger from local, regional and international institutional funds and REIT investment vehicles looking for larger or multiple asset acquisitions. We could even witness an increase in real estate “tokenization” purchases as blockchain technology becomes more relevant to the industry, especially from investor interest in the Far East. For sure, the new longer term resident visa options and recently announced tourist visa in combination with the long awaited Expo and lower local interest rates following recent cuts in the federal reserve rates should all blend together nicely to create a healthy real estate appetite.The Expo alone is expected to bolster total visitor numbers to around a massive 25 million this year. I expect another tenant’s year with continued downward pressure on rents to due to the even higher than last year’s number of newly completed units to hit the market.  As a result of the oversupply threat, developers will have certainly had their wings clipped when it comes to new off-plan launches. This year we should see the larger conglomerate developers focus more on their under construction master communities with units still in the pipeline; Dubai Hills Estate and Dubai Creek Harbour to name a couple.”

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