Dubai’s prime residential market witnessed a contraction in prices by 6 percent, with the average cost of prime property at $1.22 million (AED 4.5 million) during the first quarter of 2022, according to an analysis by LUXHABITAT Sotheby’s based on data from the Dubai Land Department.
The emirate witnessed a minimal surge in volume of 1.03 percent at $4.7 billion (AED 17.28 billion) compared to the previous quarter in Q1 2022.
Transactions in the Dubai prime residential market during the first quarter of the year included 5,258 apartments and 742 villas, the analysis stated.
The managing partner at LUXHABITAT Sotheby’s International Realty, Chris Whitehead, said: “The current market has seen a surge in activity from continental European clientele. Shell and core villas are among the highest demanded properties which end users are looking to put their signature on. This is second only to off-plan branded residences, which are reselling for the highest premiums recorded so far fetching price tags of upto AED 6,800 per square foot.”
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 three areas in terms of sales volume were:
– Mohammed Bin Rashid City (AED 3.19 billion),
– Palm Jumeirah (AED 3.10 billion), and
– Downtown Dubai (AED 2.6 billion)
In the prime residential market, the Jumeirah Islands area showed 2.2x in growth of sales from AED 90 million to AED 201 million, followed by Mohammed Bin Rashid city which showed 1.8x in growth of sales from AED 1.7 billion to AED 3.1 billion.
The top 5 prime residential areas in terms of sales volumes
| # | Prime Residential Area | Sales Volume, in AED |
| 1 | Mohammed bin Rashid City | 3,197,029,066 |
| 2 | Palm Jumeirah | 3,100,671,829 |
| 3 | Downtown Dubai | 2,608,710,673 |
| 4 | Business Bay | 2,327,138,692 |
| 5 | Emirates Living | 1,182,562,944 |
The prime villa market saw an increase in volumes of 32.31 percent, compared to the previous quarter, indicating increased villa purchases at a volume of AED 6.1 billion.
The last quarter reported AED 4.1 billion sales volume with an average price of AED 10.6 million for a villa.
The current average transaction price for a villa in Q1 2022 is AED 9.6 million. The most popular areas for villa transactions in Q1 2022 are Mohammed bin Rashid City (AED 1.7 billion), followed by Palm Jumeirah (AED 1.2 billion), and Emirates Living (AED 1.08 billion).
Sales volume of apartments decreased by 10 percent to AED 10.9 billion. The average prime apartment now costs approximately AED 2.4 million, with an average price per square feet at AED 1,431.
Popular areas to purchase apartments were Downtown Dubai (AED 2.6 billion), Business Bay (AED 2.3 billion), and Palm Jumeirah (AED 1.8 billion).
The top 10 residential transactions in Q1 2022
| # | Area – Development | Price, in AED | Built Up Area, in sq ft |
| 1 | Palm Jumeirah, The fronds,Frond N | 280,000,000 | 33,000 |
| 2 | Jumeirah Bay Island | 88,200,000 | 16,014 |
| 3 | Palm Jumeirah, The fronds,Frond J | 87,000,000 | 13,476 |
| 4 | Emirates Hills Villa –Sector L | 75,000,000 | 32,932 |
| 5 | Downtown, Burj Khalifa Apartment | 73,000,000 | 20,979 |
| 6 | Bussiness Bay,Dorchester Collection Dubai | 68,900,000 | 17,712 |
| 7 | Palm Jumeirah,The Royal Atlantis | 62,920,000 | 7,115 |
| 8 | Emirates Hills Villa –Sector E | 62,000,000 | 25,775 |
| 9 | Emirates Hills Villa –Sector P | 61,000,000 | 34,621 |
| 10 | Palm Jumeirah, The Crescent | 60,000,000 | 56,379 |
Out of the top 10 transactions in Q1 2022, LUXHABITAT Sotheby’s International Realty sold the Emirates Hills Villa in Sector L at AED 75 million.
The exquisite mansion was sold in 2021 and re-sold in 2022 by managing director, Leigh Borg.
The villa was designed by world-class architects KOBI KARP and comprises 30,000 square feet of built-up area.
It features a magnificent chandelier with over 500 hand-blown glass spheres and crystal butterflies designed and executed by Preciosa lighting and a 50-year-old Bonsai tree in the atrium.
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