Dubai prime homes see modest price growth in 2Q
Despite the global turmoil caused by Brexit and other geopolitical events, Dubai's prime residential market remained stable in the second quarter of the year, reflected by a modest 0.03 per cent growth. Dubai Marina remained the top-performing prime community in Q2. Prime residential properties are those that lie at the high-end of the Dubai residential market. Luxhabitat recognises 10 such areas: 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: "This figure may not be seen as staggering growth but it 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. The Dubai Hills Estate has gone from strength to strength in Q2 with projects such as Fairways Vistas selling out. These launches demonstrate the market demand for quality luxury off-plan developments. Downtown projects continue to stall. I envisage an uplift in transactional activity in Q3 and Q4." Dubai Marina emerged as the top-performing area, with over 356 transactions. Price per square feet in the area has declined from the last quarter by seven per cent. Prices for the Dubai Marina peaked in 2014 and has been steadily declining since then. Daniel Garofoli, luxury sales specialist of Luxhabitat, said: "Apartment prices per square feet for properties in quality towers with the best layouts and views are stable. The fall of the price per square feet of the overall market is cause by investment units, 1beds with low floors and courtyard or no good view. These are selling for any price at the moment. However, buying in a supreme location always gets you the money back and the return on investment per year." The second-highest ranking area in terms of number of transactions is Downtown Dubai with 169 transactions. Prices are trading below 2013 levels at Dh2,142 per square feet.