Dubai’s ultra-luxury home prices climb 27% in first quarter on strong demand

The average price of ultra-luxury homes in Dubai rose by more than 27 per cent in the first quarter of the year, compared with the previous quarter, as demand for prime property continued to pick up in the emirate amid a broader economic recovery.

The average price of a prime property in the emirate increased to Dh25.2 million ($6.86 million), with the total transactions in the segment reaching Dh14.7 billion during the three-month period, according to a report by Luxhabitat Sotheby’s, based on data from the Dubai Land Department.

The average price per square foot of a prime property rose by 21 per cent to Dh3,373.

Jumeira Bay recorded the highest quarterly growth, with sales volume rising 220 per cent to Dh2.05 billion. This was followed by Al Barari, where sales grew by about 168 per cent to Dh926 million, and Downtown Dubai, which recorded a 49 per cent growth in sales to Dh3.4 billion.

“Moving into the second quarter, we see a continuation of high-volume residential transactions within the super prime luxury segment,” said Chris Whitehead, managing partner at Luxhabitat Sotheby’s International Realty.

“This continuity is primarily fuelled by the current lifestyle and wealth shifts being witnessed from incoming European buyers, and a recent increased trend from institutional investors moving back into bricks-and-mortar asset classes,” he said.

Prime turnkey property continues to be in low supply, boosting demand, he said. The latest data comes at a time when the UAE’s property market continues to boom after recovering from the coronavirus-induced slowdown on the back of government initiatives and an economic recovery.

Dubai was ranked as the world’s fourth-most active market in the luxury residential segment, as sales of prime properties continued to pick up, Knight Frank said last month. Last year, the emirate recorded the sale of 219 homes priced above $10 million, with the total value of the transactions reaching $3.8 billion.

That ranked Dubai behind New York, which had 244 sales transactions, Los Angeles (225) and London (223).

Apartments in Jumeira Bay district were sold for Dh91.2 million on average, according to Luxhabitat Sotheby

In the first quarter of this year, Dubai’s luxury home sales hit Dh6 billion, with wealthy buyers snapping up 88 units valued at more than $10 million, Knight Frank said in another report last week.

The average price of a prime property in the first quarter, according to Luxhabitat Sotheby, was highest in Jumeira Bay at Dh10,594 a square foot, despite only 22 units in the area being sold during the period.

Apartments in Jumeira Bay sold for Dh91.2 million on average, with the most expensive ones being located at Bulgari Lighthouse and Bulgari Resorts and Residences.

Of the top 10 most expensive transactions during the quarter, four were recorded in Jumeira Bay.