Only Emirates Hills escapes luxury area slump
Dubai’s most sought-after areas are seeing a significant slump in sales this year compared to the same period last year, according to a new report.
Core Real Estate charted transactions in the first six months of this year when measured against H1 in 2015.
Core, part of global estate agents Savills, examined sales of villas worth more than Dhs10 million and apartments valued at Dhs4 million.
As 7DAYS reported yesterday, on the Palm, prime villa sales slumped by 44 per cent, and overall sales by 25 per cent.
In Downtown, the figures were 36 per cent and 19 per cent. Emirates Hills, which contains about 600 luxury villas, continues to have “elite address status”, with sales of Dhs10 million-plus villas rising 45 per cent and overall by 28 per cent.
Despite the slowdown in sales, Core said the prime market has been “relatively resilient” with prices stable. Even the worst performing, the Palm, only saw sales prices drop by 4 per cent. Despite slow sales figures for Dubai Marina, Core said it continues to have the most enduring appeal. Although sales were down 25 per cent, prices have also dropped by 8 per cent in a single year, prompting investor interest.
David Godchaux, CEO of Core, UAE Associate of Savills, said, “As expected, headline occupancy levels are nearly 90 per cent in top performing towers in Dubai Marina and the prime rental market has remained relatively steady due to the continued demand from expats.”
Remarkably, Marina buyers and tenants with scenic sea views both typically pay 20 - 30 per cent above the average price for the privilege.