- Sales rise in Al Barari, Downtown Dubai, Emirates Hills
- Q1 2023: AED 14.7B luxury real estate transactions
- Luxury villa price/sq. ft., up 53.15%
- 70% of Q1 2023 sales were off-plan units
- Jumeirah Bay sales surge: +220% at AED 2.05B
Dubai Luxury Real Estate Market Flourishes Amidst 14.7 Billion Dirham Transactions in Q1 2023
Dubai’s luxury residential real estate segment experienced a noteworthy upswing, with transactions amounting to 14.7 billion dirhams during the first quarter of 2023. Starling Properties reported this data. It was based on its findings on information from the Dubai Land Department.
It provided insights into the substantial size of the luxury real estate market, constituting 21.7% of the total residential market in Dubai. Despite a 21.72% decrease in trading volume compared to the preceding quarter of 2022, the luxury market demonstrated resilience and remarkable growth.
Starling Properties diligently accounted for transactions in premium real estate hotspots such as Al Barari, Downtown Dubai, Dubai Hills Estate (limited to Palaces), Emirates Hills, Jumeirah Bay, Jumeirah Islands, and Palm Jumeirah.
The average price per square foot of luxury properties impressively surged by 21.07% to AED 3373. Prime real estate’s average price rose to AED 25.2 million, registering a significant 27.49% increase compared to the final quarter of 2022.
Several key areas sustained positive quarterly sales volume growth, with exceptional performance in Jumeirah Bay (220% at AED 2.05 billion), Al Barari (167.53% at AED 926 million), Downtown Dubai (48.78% at AED 3.4 billion), and Emirates Hills (11.62% at 613.6 million dirhams).
Furthermore, Palm Jumeirah witnessed an impressive 17.26% increase in average prices quarterly, reaching 9.5 million dirhams, bolstered by sales of luxury properties amounting to 5.7 billion dirhams.
Frank Vitto, the CEO at Starling Properties, expressed optimism for the second quarter of 2023, highlighting continued high-volume transactions within the luxury sector.
He attributed this trend to the evolving lifestyles, increasing interest from European buyers, and a growing trend of investments from institutional players. Additionally, the scarcity of luxury ready-to-move properties empowered sellers to set prices, ensuring a positive trajectory for the area, even through the traditionally slower summer months.
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Booming Luxury Real Estate Market Witnesses Exemplary Sales
Dubai’s luxury real estate market showcased remarkable performance in the first quarter of 2023, with an impressive tally of 1,584 units sold, amounting to a staggering 9.8 billion dirhams. These exceptional figures constituted a significant 66% of the total volume in the primary real estate market, underlining the dominance and allure of the luxury segment.
Leading the charge in sales volume for luxury apartments were three prestigious areas. Palm Jumeirah secured a substantial 3.7 billion dirhams in sales, followed closely by Downtown Dubai with 3.4 billion dirhams and Jumeirah Bay with 1.8 billion dirhams. These upscale locales remained at the forefront of the luxury property landscape, attracting discerning buyers seeking exclusivity and opulence.
Reflecting the premium nature of the luxury market, the average cost of a luxury unit surged to AED 28.4 million, marking an impressive 34.62% increase compared to the final quarter of 2022. These elite properties offered an estimated built area of 5,379 square feet, further accentuating their grandeur and sophistication.
A notable trend within the luxury real estate sector was the dominance of off-plan sales, comprising 70% of all residential units sold in the first quarter of 2023. That reaffirmed the allure of investing in pre-construction properties for those seeking to secure prestigious residences ahead of completion.
With a thriving luxury market witnessing remarkable sales and substantial price growth, Dubai’s real estate landscape continued to allure high-end investors and homeowners, making it a desirable destination for those seeking the epitome of refined living.
Thriving Luxury Villa Market: Sales Soar by 5.6 Billion Dirhams
Dubai’s luxury villa market boasted stellar success, with 294 opulent villas finding buyers, amounting to an impressive 5.6 billion dirhams in transactions. Leading the charge in sales volume were three coveted areas: Palm Jumeirah (1.9 billion dirhams), Dubai Hills Estate (1.6 billion dirhams), and Al Barari (926 million dirhams). The luxury villa segment witnessed a substantial 37.2% quarterly price increase, with the average luxury villa now valued at AED 36.8 million. Moreover, the average price per square foot skyrocketed by 53.15% to AED 3,547, with 88% of sales transpiring in the secondary residential market.
Jumeirah Bay: Exclusive Locale with Premium Property Prices
Property prices reached unparalleled heights in the esteemed neighborhood of Jumeirah Bay, with an impressive average of Dh10,594 per square foot and an overall property value averaging Dh93.3 million. Despite a relatively modest count of 22 units sold in the first quarter of 2023, Jumeirah Bay’s apartments fetched an average price of Dh91.2 million, reflecting a substantial 40% price surge.
The area’s prestigious Bulgari Lighthouse and Bulgari Resorts and Residences accounted for 410 million dirhams, securing the top spot for the most expensive transactions.
Additionally, Jumeirah Bay dominated the list with four entries among the foremost ten transactions. Palm Jumeirah (AED 3,106 per sq ft) and Emirates Hills (AED 2,396 per sq ft) held the highest price per square foot, while Jumeirah Bay also witnessed a remarkable 220% increase in sales volume each quarter.
Prairie Surges in Secondary Market: Al Barari Leads at AED 552M
In an impressive leap, the luxury real estate secondary market saw sales soar by 220%, reaching AED 552 million. Al Barari emerged as the top choice, followed by Downtown Dubai (16.82% increase at AED 1.1 billion) and Emirates Hills (11.6% at AED 613 million).
