Luxury houses in Dubai are becoming more affordable, according to the latest report from Property Finder.
The Dubai luxury housing market – which includes any property above $2.7 million (AED10m) – registered 194 transactions in H1 2019, up from 115 transactions for the same period last year.
“Prices in the luxury market were inflated over the past few years, therefore as prices declined, particularly over the last year, luxury properties have become very attractive, especially to foreign investors,” said Lynnette Abad, director of data & research, Property Finder.
In terms of volume, Palm Jumeirah accounted for the most luxury home sales (55) in H1 2019, almost double the deals from H1 2018, followed by Dubai Hills Estate (29), Downtown Dubai (28), Mohammed Bin Rashid City (22), Emirates Hills (17) and Jumeirah Golf Estates (12).
There were 65 luxury apartments sold in H1 2019, 78 ready prime villas/townhouses and 51 off-plan luxury villas.
On the Palm Jumeirah, there was renewed buyer interest for apartments on the Crescent (16 deals) and villas on the Frond (24 deals). In Downtown Dubai, apartments in the Opera District soaked up majority of buyer interest, while multiple standalone apartment projects also registered healthy sales. Emaar’s Il Primo tower in Opera District has also seen robust sales in the luxury segment.
Meanwhile in MBR City, the villas and mansions in District One witnessed healthy sales (16) on the secondary market while Sobha Hartland accounted for a few off-plan villa sales.
The report said: “There has been a return in demand for established communities such as the Palm Jumeirah, Downtown Dubai and Emirates Hills. These areas, once considered overpriced, are now attractive as prices have declined. But there is also plenty of activity happening in the luxury space in new projects such as Dubai Hills Estate and Mohammed Bin Rashid City.”
There was an off-plan transaction registered for a penthouse in Omniyat’s One Palm project that sold for AED 74 million in May - the most expensive property transaction in Dubai so far in 2019.
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 percent of the average price in Hong Kong.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.
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