- Prime overall market sees a modest increase in average prices by 8.72%
- Prices per square feet were highest in Jumeira Bay by a significant margin. Lack of availability pushes average prices by 70 % in Jumeira Bay, with apartment prices in the area increasing by 297%
- Palm Jumeirah, MBR City and Business Bay are primary growth centres in Q4 2022 in terms of sales volumes
- Investors show a continued preference for large apartments with a growth of 32.39% in terms of units sold
- An average prime area apartment covers a built-up area of 4367 sq ft with the average cost of a prime area apartment jumping by 93.37% over the past quarter
- Prices of villas fall by 29.75 %
According to analysis of data from the Dubai Land Department by LUXHABITAT Sotheby’s International Realty, Dubai’s prime residential market witnessed transactions worth AED 30.7 billion in Q4 2022, reflecting a volume growth of 39.62% QoQ (quarter-on-quarter) over Q3 2022. Growing by 8.72 % QoQ, average price of property in prime areas was AED 6.9 million with 9836 units sold. The number of units sold also grew by 30.24% QoQ in prime areas.
Average price was highest in Jumeira Bay at AED 6966 per sq ft and the average price of a property at AED 45.7 million, despite only 14 units being sold in Q4 2022. Apartments in Jumeira Bay were sold on average at AED 64.9 million, reflecting a median price increase by as much as 297%. The most expensive of these were located at Bulgari Lighthouse & Bulgari Resorts & Residences. After Jumeira Bay, price per sq ft was highest in Palm Jumeirah and Zabeel. Jumeira Bay also sees several investors looking to build their own homes after purchasing plots. The average size and price of a plot in the area are 15,474.67 sq ft and AED 72 million respectively, with Jumeira Bay AED 434 million in plot sales alone in Q4 2022.
Chris Whitehead, Managing Partner at LUXHABITAT Sotheby’s International Realty said, “The past quarter was characterized by sharp increase in price in specific prime areas. This steep rise in prices is being driven primarily by interest in high-end branded residences, with some of the preferred prime areas such as Jumeirah Bay seeing investors and more end users willing to pay higher-than-average prices. We have been working closely with developers to ensure greater availability of new units that are cater to the exacting demands of these investors. When it comes to villas, investors are demanding ready and fully fitted units in beachfront areas such as Palm Jumeirah with several transactions over the AED 140 million price point.”
With AED 11 billion in sales, Palm Jumeirah continued to see the most volume sales growth QoQ at 117.36% followed by Al Barari (99.48%) and Jumeirah Islands (83.35%). Palm Jumeirah also led in terms of both off plan and secondary volume sales growth at AED 7 billion and AED 4 billion respectively. Seeing 2085 transactions, MBR City saw the highest number of units sold in the off plan prime market while Dubai Marina led within the secondary market with 835 units.
PRIME APARTMENTS MARKET
Most units sold were apartments that saw a total volume of AED 24.08 billion and a volume growth of 44.18% QoQ. In terms of built-up area (BUA), the apartments sold were larger on average by 152.74%. Business Bay saw the most apartments being sold. The top three areas accounting for the highest prime apartment sales volume were Palm Jumeirah (AED 8.47 billion), Business Bay (AED 4 billion) and MBR City (AED 3 billion). The average cost of a prime area apartment jumped by 93.37%. Off plan sales accounted for 63. 22% of all apartment units sold in Q4 2022.
PRIME VILLA MARKET
The prime villa market increased in terms of volume sales at 14.42% with Emirates Living seeing the greatest number of units sold at 77 villas. However, Palm Jumeirah saw the highest sales volume at AED 2.56 billion. 62.6% of all prime area villas sold were off plan transactions. Prices of villas dropped by 29.75 % with the average price per sq ft falling by 26.10 %.
TOP 10 RESIDENTIAL TRANSACTIONS IN Q4 2022
| Development | Price (in AED) | Built Up Area (in sq ft) |
| Palm Jumeirah, The Fronds, Frond N | 600,000,000 | 59,569 |
| Palm Jumeirah, The Fronds, Frond G | 300,000,000 | 28,247 |
| Palm Jumeirah, XXII Carat (Club Villas) | 145,000,000 | 12,167 |
| Palm Jumeirah, The Fronds, Frond N | 145,000,000 | 17,020 |
| Umm Suqeim 3, Marsa Al Arab | 145,000,000 | 15,213 |
| Jumeira Bay, Bulgari Lighthouse | 133,150,000 | 11,655 |
| Palm Jumeirah, The Fronds, Frond G | 130,000,000 | 13,592 |
| Jumeira Bay, Bulgari Lighthouse | 126,900,000 | 11,655 |
| Umm Suqeim 3, Marsa Al Arab | 120,000,000 | 12,283 |
| Jumeira Bay, Bulgari Lighthouse | 119,000,000 | 11,657 |
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, Palm Jumeirah and Zaabeel.
