Dubai witnessed a surge in the sale of properties valued at over Dh5 million and Dh10 million, setting a new record. However, overall sales in the prime and super-prime segments experienced a decline last year. According to real estate consultancy CBRE, in 2023, properties with a value exceeding Dh5 million and Dh10 million recorded 10,296 and 3,806 transactions, respectively. This marked an increase of 54.5% and 68.4%, respectively. CBRE noted that 67.2% and 70.8% of total transaction volumes for Dh5 million-plus and Dh10 million-plus properties, respectively, were attributed to off-plan sales.
The demand for properties in these categories predominantly occurred in emerging developments within prime areas, such as Downtown Dubai, Emirates Hills, Jumeirah Bay Island, Palm Jumeirah, and District One. Prime properties, sold for more than Dh5 million, and super-prime properties, sold for over Dh10 million, constitute the primary focus.
The total volume of sales transactions within the prime and super-prime segments decreased by 15.5% and 3.1%, respectively. Palm Jumeirah led in transaction volumes for both segments, with 963 units sold above Dh5 million and 593 properties sold exceeding Dh10 million.
In terms of price growth, average prices within the prime segment reached Dh4,604 per square foot in Q4 2023, reflecting a 22.5% YoY increase. The super-prime segment saw average prices grow by 20.4% to reach Dh4,900 per square foot in the same period. Jumeirah Bay Island and District One experienced significant average sales rate increases of 28.5% and 22.4%, respectively, in the super-prime segment.
Looking ahead, Taimur Khan, head of research for Mena at CBRE in Dubai, anticipates that due to limited new supply, the prime and super-prime segments will likely sustain relatively strong price growth in the coming year, although the rate of growth is expected to slightly taper off.
Publish Date: 11 Jan 2024
Source: https://www.khaleejtimes.com/business/dubai-sales-of-over-dh5m-and-dh10m-properties-reach-record-level
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