Dubai real estate market continues to ride high | Credence & Co.
Updated: Feb 2
A study by "Luxpetit Sotheby's International Realty" showed that the real estate sector in Dubai continues to maintain its stability, with total market size growing by 1.11% in quarter three of 2022, reaching 21.9 billion dirhams. In addition, the average price increased by 11.29%, bringing the average price of prime real estate to 6.4 million dirhams.
Luxpetit Sotheby's International analysis also showed almost 7,552 properties were sold in the Dubai residential market (6,940 apartments versus 316 villas), reflecting a quarterly increase of 7.06%.
According to the company, neighbourhood areas such as Jumeirah, Sheikh Mohammed bin Rashid City, and Arabian Ranches had an upsurge of 86.8%, 16.9%, and 9.1%, respectively.
Despite market volatility in some countries over the past year Dubai property market continued to grow; this was prompted by high net-worth individuals around the world buying residences in the region," said Chris Whitehead, managing partner of Luxpatites Sotheby's International Realty.
"These homes provide a lot of opportunities for investors, urging them to make purchase decisions based on the many benefits they offer them, and encouraging them to move to Dubai to take advantage of investment opportunities and do business, and settle in a safe and comfortable environment, while the results of the third quarter show the appetite of wealthy owners. To buy luxury properties all over the city, including new neighbourhoods like Zabeel.
According to the company, statistics showed an increase in apartment sales during the third quarter by 9.39% and an increase in sales volume by 4.75%, to a total of 16.7 billion dirhams, while branded apartments accounted for the largest share in terms of volume.
The results indicate that the first three areas that recorded the highest sales volume of residential apartments are "Palm Jumeirah" with a total of 3.89 billion dirhams, followed by the Business Bay area (3.79 billion dirhams), then the downtown area (3.59 billion dirhams).
In turn, sales of main apartments "on the map" accounted for the most significant percentage of the total sales volume in the main sector, with a total of 10.4 billion dirhams, which indicates an increase of 24.76% compared to the previous quarter.
While the sales volume of villas decreased by 9.91% quarterly, their average price increased by 33% to reach AED 4.53 billion. As a result, the villas sold in "Jumeirah" and "Jumeirah Bay" witnessed a significant increase in sales volume of 802% (AED 290 million) and 544% (AED 205 million), respectively.
The average transaction price for prime villas increased to 18.4 million dirhams, an increase of 33% quarterly, and an increase in the price per square foot by 50%, to reach 3,483 dirhams. "Palm Jumeirah" was the most popular area for selling villas in the third quarter of 2022, with a total sales volume of 1.1 billion dirhams, followed by "Emirates Living" with a value of 867 million dirhams, and then "Sheikh Mohammed bin Rashid City" with a value of 669 million dirhams.
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