By Staff writer
Upper-end of real estate sector sees marginal growth of transactions despite overall slump in market of 17%, says report
Dubai’s prime residential property market remained stable in the second quarter of the year despite the global political turmoil caused by Brexit and other geo-political events, according to a new report.
LuxHabitat's Q2 report said Dubai Marina remained top-performing prime community, as transactional volume rose marginally.
While the overall residential real estate market saw a further slump in transactions by 13 percent over the last quarter, the prime residential sector saw growth of 0.3 percent, according to data by REIDIN and analysis by Luxhabitat.
Prime residential properties are those properties that lie on the high end spectrum of the Dubai residential market including Arabian Ranches, Downtown Dubai, DIFC, Dubai Marina, Emirates Hills, Jumeirah, Jumeirah Beach Residence, Jumeirah Islands, Palm Jumeirah, The Lakes, Springs and Meadows and Victory Heights.
Jason Hayes, head of new developments at Luxhabitat said: “I am delighted and not at all surprised to see prime market sales volume up by 0.3 percent. This figure may not be seen as staggering growth but it clearly demonstrates stability in Dubai’s prime market.
"Q2 has seen some prime new developments released to the market and investor appetite has proven to be robust."
He said Downtown projects continued to stall in Q2 but he said he expected an "uplift in transactional activity" during Q3 and Q4 once Dubai’s new opera house opens.
Dubai Marina emerged as the top performing area, with over 356 transactions but prices per square feet (AED/sq ft) in the area has declined from the last quarter by 7 percent. Prices for the Dubai Marina peaked in 2014 and has steadily been declining since then.
Daniel Garofoli, luxury sales specialist of Luxhabitat, added: “Apartment prices per square feet for properties in quality towers, with the best layouts and views is stabile. The fall of the price per square feet of the overall market is caused by investment units, 1 beds with low floors and courtyard or no good view.”
The second highest ranking area in terms of number of transactions was Downtown Dubai with 169 transactions, the report said.
Palm Jumeirah reported the highest volume of sales at AED558 million, it said, adding that the number of prime apartments sold increased by 10 percent, while prime villa sales increased by 6 percent.For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.