11 April 2023, Construction Week Online
In the first quarter of 2023, Dubai’s super-prime residential market had transactions worth $3.8 billion. This is a 21.72% decrease compared to the previous quarter (Q4 2022). This luxury market accounts for 21.7% of the total residential market in Dubai 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 $6.9 million with 1,811 units sold.
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 from 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.”
Top 10 residential transactions in Q1 2023
Jumeira Bay Island Bulgari lighthouse – $111.7 million
Palm Jumeirah, XXII Carat (Club Villas) – $49.9 million
Jumeira Bay Island Bulgari lighthouse – $43.7 million
Palm Jumeirah, The fronds, Frond D – $40.9 million
Palm Jumeirah, The fronds, Frond F – $34.1 million
Jumeira Bay Island Bulgari lighthouse – $32.4 million
Al wasl Aire Dubai – $32.3 million
Al wasl Aire Dubai – $32 million
Al wasl Aire Dubai – $32 million
Jumeira Bay Island Bulgari lighthouse – $31.6 million
Jumeira Bay – Billionaire’s Island
Average price was highest in Jumeira Bay at AED 10,594 per sq ft and the average price of a property at AED 93.3 million, despite only 22 units being sold in Q1 2023, truly allowing it to really take its name as “Billionaire’s island”.
Apartments in Jumeira Bay were sold on average at AED 91.2 million, reflecting a median price increase by as much as 40%. The most expensive of these were located at Bulgari Lighthouse & Bulgari Resorts & Residences, which also takes the top spot in the most expensive transactions list at AED 410 million. Four out of the top ten transactions come from Jumeira Bay.
After Jumeira Bay, price per sq ft was highest in Palm Jumeirah (AED 3,106/sqf ft) and Emirates Hills (AED 2,396/sqft). 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 AED 9.8 billion, 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 (AED 3.7 billion), Downtown Dubai (AED 3.4 billion) and Jumeira Bay (AED 1.8 billion).
The average cost of a super prime apartment costs AED 28.4 million, which is a 34.62% increases QoQ. Off-plan super prime sales accounted for 70% of all apartment units sold in Q1 2023.