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Friday, March 24, 2023

Dubai sets new record for $10m home sales in 2022

Dubai sets new record for m home sales in 2022

Dubai will record a record 219 ultra-prime home sales in 2022, or $10 million-plus home sales, according to new analysis by global property consultant Knight Frank.

Faisal Durrani, Partner and Head of Middle East Research, said: “Dubai’s multi-million dollar housing market has grown rapidly over the past two years. Transactions at the dollar mark – more than the total recorded between 2010 and 2020.

“The performance at the top of the market is a clear indication of Dubai’s arrival as a luxury hub that can compete with long-standing markets elsewhere, with no sign of a slowdown in the seemingly relentless demand from global ultra-high net worth individuals looking for a second home in the emirate. In fact, our 2023 Global Attitudes Survey shows that among the region’s wealthy, the UAE remains the second most likely destination for home purchases this year, after the UK.”

Knight Frank’s research also revealed that prices across the UAE’s key markets, including Emirates Hills, Jumeirah Bay Island and Palm Jumeirah, will see a combined price increase of 44% in 2022.

record rollover

Durrani continued: “Dubai’s prime residential market is performing in line with our expectations, with an average transaction price of approximately AED 3,250 psf, or approximately $885 psf, it remains one of the most affordable luxury residential markets in the world, Further enhancing the city’s attractiveness to international buyers.

“The Palm Jumeirah remains the city’s star, with villa prices up 49.4 per cent last year, driven by a shortage of new beach house projects in established communities and international elites looking to secure standalone beachfront homes. Since the start of the pandemic, villas The exceptional demand for homes on Dubai’s iconic Palm Jumeirah is best reflected by the fact that prices have risen by 96 per cent but remain around AED 3,000 per sq ft. However, prices are now lower than in 2017 The peak was 34% higher”.

Villas in Mohammed bin Rashid City (21.6%), Dubai Hills Estates (20.2%) and District 1 (19.5%) are the other areas with the largest increases in 2022.

Apartment prices in the most sought-after locations have also seen big increases. Interestingly, Dubai Hills Estate (22.7%) tops the 2022 rankings, followed by Palm Jumeirah (19.7%) and Downtown Dubai (13.8%). Apartments at the latter two locations are now transacting at around Dh2,200 psf, according to Knight Frank.

mature luxury market

Andrew Cummings, Partner and Head of Prime Residential, added: “Dubai’s luxury housing market has truly matured and is now driven by world-class quality developments and luxury homes. Over the past year, we have seen a number of new luxury developments being launched, many with very active sales. Six Senses Palm Jumeirah, Bulgari Lighthouse and Ava and Orla, two developments serviced by Dorchester Collection, to name a few. All of these launches are trying to curb demand, with pricing attractive compared to ready properties.

“We have also seen strong sales from new or soon-to-be-delivered projects such as One Palm, Dorchester Residences and Atlantis the Royal. These properties are differentiated by incredible architecture, world-class facilities and new high-quality properties in Dubai decorate.”

Likewise, Knight Frank said that while traditional prime locations continued to experience strong transactions, new neighborhoods also saw a surge in luxury sales. In the case of Dubai Hills, 2022 saw 15 transactions exceeding USD 10 million, including a record sale of AED 205 million. Similarly, Majid Al Futtaim’s flagship residential development, Tilal Al Ghaf, sold out its AED45 million Crystal Lagoon front villas and recently caused a stir with the sale of its Lanai mansion for over AED90 million.

Cummings continued: “The buyer base remains very diverse, with expatriate residents and international high net worth individuals from Europe, India, Europe, Asia, the UK and Eastern Europe still coming in droves, the vast majority of whom are attracted by the climate in Dubai. Attractive, safe, secure, cosmopolitan lifestyle and incredibly forward-looking leadership.”

mainstream market

Away from the upper end of the market, prices continue to rise in 2022, with average house prices in Dubai rising by 9.5%, beating Knight Frank’s forecast of 7%. Despite the big gains, house prices are still 4.8 per cent below their 2014 peak, while units are around 22 per cent cheaper, Knight Frank said.

Durrani concludes: “The ability of mainstream markets to sustain this growth trajectory depends largely on how the global economic situation develops, as well as domestic supply and interest rate considerations, which currently appear to be low-to-medium risks. Our outlook for 2023 Perceptions remain unchanged that the overall market could grow by 5-7%, while the luxury segment could double that at around 13.5%.” –trade arab news agency

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