Prices in Dubai’s secondary prime residential market have remained stable, despite a shift towards off-plan real estate, according to new data from real estate brokerage Luxhabitat.
Prices per square foot were to have remained largely flat. According to the data, Q2 price per square foot for prime residences was AED1,441 ($392), and have remained around AED1,400 ($381) since Q2 2016.
The total volume of transactions in Q3 2017 was AED1.9 billion ($517 million), 63 percent of which were for apartments. Dubai Marina was found to have the most transaction activity with AED363 million ($98 million) in transactions, following by the Palm Jumeirah with AED218 million ($59.3 million) and Downtown Dubai with AED160 million ($43.5 million).
The apartments market had a total volume of AED1.2 billion ($326 million), 50 percent of them in Dubai Marina, with the largest being AED25 million ($6.8 million) for a 12,469 BUA (Built Up Area) square feet apartment in Elite Residence.
“It might be worth mentioning that 2 out of the 3 top apartment transactions were in 'branded developments' (Armani and Palazzo Versace) which continues a trend of increasing demand for globally recognised luxury branded properties,” said Ryan Kasper, Director of Luxury Rentals.
The total volume of transactions in the villa market was AED688 million ($187 million), with 71 percent of the transactions taking place in the Emirates Living areas, which includes Emirates Hills – which alone accounted for AED107 ($29 million) in transactions – as well Springs, the Meadows and the Lakes.
The single most expensive villa sold was a 22,780 BUA square feet villa in Emirates Hills for AED95 million ($25.8 million).
Luxhabitat believes that the availability of new luxury real estate will soon lead to a readjustment of price points on the secondary market.
“New locations such as CityWalk, Bluewaters Island, Bvlgari, Dubai Creek Harbour, and Dubai Hills Estate make both investors and end-users very excited about new stock and the promise of new communities,” said Alexander von-Sayn Wittgenstein, luxury sales director at Luxhabitat.
"People are now expecting an upgrade in quality since a lot of the existing stock look a bit aged and the price levels are more or less the same as a new stock when upgraded.
“End-users need to decide if they need something immediate or not. 80 percent of the off-plan luxury market are going to investors who are hoping for capital appreciation. Off-plan properties also have the added advantage of flexible payment plans,” he added.
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