3,450 apartments and 586 villas were transacted in Q1 2021 in the Dubai prime residential market at a sales volume of AED 11.6 billion, according to analysis by LUXHABITAT Sotheby’s based on data from the Dubai Land Department. The volume of sales has increased by 25% from AED 9.2 billion to AED 11.6 billion. thereby indicating a strong surge in buyer activity. The Dubai prime residential market areas used for the analysis included Al Barari, Arabian Ranches, Downtown Dubai, Dubai Marina, Business Bay, Emirates Living, Jumeirah, Jumeirah Beach Residence, Mohammed bin Rashid City, Jumeirah Golf Estates, Jumeirah Islands, Jumeirah Lake Towers and Palm Jumeirah. The top 3 areas in terms of sales volume were Palm Jumeirah (AED 2.7 billion), MBR City (AED 1.3 billion) and Business Bay (AED 1.2 billion).
The Jumeirah Beach Residence area showed the highest growth of sales at AED 916 million (2.7x times higher than the previous quarter), followed by Jumeirah Lake Towers (2.3x growth in sales at AED 525 million) and Palm Jumeirah(2x growth in sales at AED 2.7 billion). Chris Whitehead – Managing Partner at LUXHABITAT Sotheby’s, “There is a massive shift of wealth that has triggered an exponential increase in real estate transactions in 2021, compared to previous years. We have seen a 30% to 50% increase in transactions on high-ticket properties within the company and most of these transactions are happening in top-tier luxury communities. Not only does this underscore the credibility of Luxhabitat Sotheby’s in the luxury segment but also the positive outlook of property value in the Dubai realty market. ”
PRIME VILLA MARKET
The prime villa market remained stable with an average price of AED 8.1 million, about 3% higher than the previous quarter – indicating keen buyer interest in villas continuing from last year. Across all areas, there was an average of 10% square feet increase in the size of the villas transacted.
PRIME APARTMENTS MARKET
Prime apartments also remained stable with a slight price correction of -6.32% at AED 1,315 per square foot. The average prime apartment now costs approximately AED 2.07 million.