Three locations make up half of Dubai luxury home sales

09 February 2020

The Top 3 locations for luxury homes in Dubai accounted for just under half of total sales in the category last year.

These were MBR (Mohammed Bin Rashid) City with Dh8 billion, the Downtown with Dh7.9 billion, and Dubai Creek Harbour with Dh4.2 billion. In all, luxury homes recorded Dh42.3 billion in sales transactions last year, according to Luxhabitat.

Sales would have been helped by the average price per square foot in the overall prime residential market being down by 3.72 per cent from 2018. “Currently, the average price per square foot in the overall prime market for villas is Dh1,348 per square foot and for apartments is Dh1,736.

Softer prices led to greater volumes - Dh42.3 billion in 2019 compared with Dh34.4 billion a year before.

Other areas too pitch in

Demand was also there for the apartments on Bluewaters Island. Jumeirah Golf Estates and the Palm also received “higher sales volumes since last year”.

In all, more than 1,454 villas and 16,522 apartments were transacted in the overall prime residential market.

Secondary activity

Volumes in the secondary prime market did see a slight drop to Dh19.3 billion from Dh19.5 billion. The three most popular areas for the secondary market were MBR City (Dh3.8 billion), Downtown (Dh3.1 billion) and the Palm (Dh2.7 billion).

Offplan led the way

Registrations for prime offplan sales "almost doubled" in transaction volumes, through an increase from Dh14.7 billion in 2018 to over Dh20 billion, making for a 42 per cent increase in volume . There was a 38 per cent increase in number of units sold and an average price per transaction at Dh1,761 per square foot. The average price for a prime off-plan villa was Dh4.1 million and for an apartment Dh2.5 million.