The Dubai real estate market has witnessed unprecedented growth, with transactions in the prime and super-prime segments hitting record levels. Despite a dip in overall sales, the sector is bustling with activity, especially in areas like Palm Jumeirah, Jumeirah Bay Island, Downtown Dubai, Emirates Hills, and District One. Let’s delve into the insights provided by CBRE and explore the dynamics of this flourishing market.
1. Record-Breaking Transactions:
In 2023, properties valued over Dh5 million and Dh10 million saw a surge in transactions, reaching 10,296 and 3,806, respectively. This represents a substantial increase of 54.5% and 68.4%, showcasing the robust nature of Dubai’s high-end real estate market.
2. Off-Plan Dominance:
A significant revelation is the dominance of off-plan sales, constituting 67.2% and 70.8% of transactions in the Dh5 million plus and Dh10 million plus categories, respectively. This trend underscores the demand for nascent developments, positioning them as prime locations for prospective buyers.
3. Prime Locations and Market Shifts:
Prime and super-prime areas, including Downtown Dubai, Emirates Hills, Jumeirah Bay Island, Palm Jumeirah, and District One, define the thriving landscape of luxury properties. While total sales transactions declined slightly, Palm Jumeirah emerged as the leader, with 963 units sold above Dh5 million and 593 properties exceeding Dh10 million.
4. Price Growth Trends:
In Q4 2023, the average price per square foot in the prime segment rose by 22.5%, reaching Dh4,604. Notable increases were observed in Jumeirah Bay Island and District One, with year-on-year growth rates of 35.6% and 27.2%, respectively. The average sales value of prime residential assets hit Dh28.3 million.
Similarly, the super-prime segment experienced a 20.4% surge, with an average price of Dh4,900 per square foot. Jumeirah Bay Island and District One again led the way with significant increases in average sales rates.
5. Future Outlook:
Taimur Khan, Head of Research for Mena at CBRE in Dubai, anticipates continued strength in the prime and super-prime segments due to limited new supply. While expecting a slight tapering off in the rate of price growth, the market is poised for stability and sustained demand.
Conclusion:
Dubai’s real estate market is navigating a paradigm shift, marked by record-breaking transactions, price surges, and evolving buyer preferences. As the cityscape continues to transform, investors and buyers alike find themselves drawn to the allure of prime and super-prime properties. The coming years promise a captivating journey for Dubai’s real estate, where growth and resilience go hand in hand.
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