· The average price of a super prime property now stands at AED 29.2 million, a 11.9% increase from the last quarter.
· Average transaction price in Jumeira Bay increased by 103%, an average property in the area now costs AED 93.3 million
· Increased volume of sales reported in Al Barari, Downtown Dubai, and Emirates Hills
· An average super prime area apartment covers a built-up area of 5,379 sq ft with the average cost of a prime area apartment jumping by 34.62% over the past quarter
· Average price per square feet of super prime villas rises by 53.15%
· Off plan super prime sales accounted for 70% of all apartment units sold in Q1 2023.
According to analysis of data from the Dubai Land Department by LUXHABITAT Sotheby’s International Realty, Dubai’s super prime residential market witnessed transactions worth AED 14 billion in Q1 2023, reflecting a volume reduction of 21.72% QoQ (quarter-on-quarter) over Q4 2022. The super prime luxury market in Q1 2023 currently represents 21.7% of the overall Dubai residential market in Q1 2023 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 the average price of AED 25.2 million with 1,811 units sold.
The other super prime areas that continued to see the positive volume sales growth QoQ were Al Barari (167.53% at AED 926 million), Downtown Dubai (48.78% at AED 3.4 billion) and Emirates Hills (83.35% at AED 613.6 million). With AED 5.7 billion in super prime sales, the Palm Jumeirah has seen an increased average in price by 17.26% QoQ to AED 9.5 million.
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.”
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.
SUPER PRIME VILLA MARKET
In the super prime villa market, there were 294 villas sold at a total volume of AED 5.6 billion. The top three areas accounting for the highest super prime villas sales volume were Palm Jumeirah (AED 1.9 billion), Dubai Hills Estate (AED 1.6 billion) and Al Barari (AED 926 million). The average cost of a super prime villa costs AED 36.8 million, which is a 37.2% increase QoQ. The average price/sq ft of super prime villas has jumped by 53.15% QoQ at AED 3547/ sqft. 88% of the super prime villa market sales were on the secondary residential market.
AL BARARI TRUMPS IN SUPER PRIME SECONDARY MARKET
With a 220% increase in volume in the super prime secondary market to AED 552 million, Al Barari proves to be the most popular area to purchase in the secondary market, followed by Downtown Dubai (16.82% increase at AED 1.1 billion) and Emirates Hills (11.7% at AED 613 million.)