Dubai’s luxury house sales market saw a rise in volume during the first half of the year compared to the first half of 2011, according to Data Finder, a data and real estate platform within Property Finder, the leading real estate portal in the region.
Any real estate transaction in excess of AED 10 million ($ 2.72 million) was considered in this analysis. Dubai’s luxury house market recorded 194 transactions in the first half of 2019, compared to 115 transactions in the first half of 2018.
There has been a return in demand for existing communities such as Palm Jumeirah, Downtown Dubai and Emirates Hills. These areas, which were considered overpriced, are now attractive with lower prices. But there are also lots of activities taking place in luxury spaces in new developments such as Dubai Hills Estate and Mohammed Bin Rashid City.
A deal outside the scheme was registered at Penthouses on the One One One Palm project, which was sold for AED 74 million in May. This is the most expensive real estate deal in Dubai so far in 2019.
In terms of volume, Palm Jumeirah accounted for the most luxury home sales (55) in H1 2019, almost double the deals in H1 2018, followed by Dubai Hills Estate (29), Downtown Dubai (28), MBR City (22), Emirates Hills (17) and Jumeirah Golf Estates (12).
Dubai’s luxury houses are still very affordable compared with their counterparts in leading global cities such as London, New York, Paris and Singapore. This could be the reason for the revival of buyer interest in Dubai’s prime housing market.
Across the 10 cities surveyed for Knight Frank’s Wealth Report, Dubai prime properties are most affordable amongst those analysed, with an average price of $625 per sq ft, just 15% of the average price in Hong Kong. This means that buyers are able to acquire prime projects in Dubai at values that are relatively lower, compared to other key global cities.
In breakdowns based on unit specifications, 65 luxury apartments were sold in the first half of 2019, 78 master villas/townhouses ready and 51 unplanned luxury villas.
Meanwhile, in MBR, villas and palaces in the first district recorded healthy sales 16 on the secondary market while Sobha Hartland accounted for a small number of off-plan villa sales.
At Jumeirah Golf Estates, the Siena Lakes Villas registered healthy interest in the secondary luxury sales market. In the other major home transactions, there was a great interest for buyers in the villas of the prairies, the resort and the residence of Bulgari and the apartments at the Volanti Tower in the Business Bay, Dubai Creek and Lou Reef at Dubai Marina.