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Thu 17 Oct 2019 02:24 PM

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Average Dubai property prices rise in Q3 after extended downturn

New research shows average price per square foot in Dubai's secondary market increases by 2.5% in third quarter of 2019

Average Dubai property prices rise in Q3 after extended downturn
More than 2,280 villas and 6,963 apartments were bought and sold in Dubai during the third quarter of 2019.

More than 2,280 villas and 6,963 apartments were bought and sold in Dubai during the third quarter of 2019, according to new figures.

Analysis by Luxhabitat based on data by Property Monitor showed that the volume of transactions in the secondary market was AED10.8 billion, down from AED13.4 billion in the previous quarter.

However, there was an increase in the number of transactions by 13.75 percent while the average price per square foot also went up by 2.5 percent for secondary market units.

Currently, the average price per square foot in the overall market for villas is AED802 and for apartments is AED1,010.

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New research shows average sales prices and rents softened across most communities in the UAE during Q3

The research showed that the biggest residential deal seen in Q3 was for a villa in District One, MBR City which was bought for $90 million, followed by a $74 million transaction for a penthouse apartment in One, Palm Jumeirah.

The research also showed that off-plan registration volumes increased by 17.3 percent from the previous quarter to AED8 billion. There was a 21 percent increase in the number of transactions and an average price per transaction recorded at AED1,314 per sq ft. The average price for an off-plan villa is AED1.5 million and AED1.2 million for an apartment.

According to Luxhabitat’s analysis, the prime residential market in Q3 totalled AED10.2 billion, about 16 percent lower than the previous quarter.

Luxhabitat recognises certain key areas that form part of the prime classification including Al Barari, Arabian Ranches, Downtown Dubai, Dubai Marina, Emirates Hills, Jumeirah, Jumeirah Beach Residence, Mohammed bin Rashid City, Jumeirah Golf Estates, Jumeirah Islands, Jumeirah Lakes Towers, Palm Jumeirah, The Lakes, Meadows, & Victory Heights.

It said the top three areas in terms of sales volume were MBR City (AED2 billion), Downtown Dubai (AED1.4 billion) and Dubai Creek Harbour (AED894 million). Areas such as Bluewaters Island, Madinat Jumeirah Living and Dubai Harbour have more than doubled sales from the previous quarter.