JobXDubai

In the ever-evolving landscape of Dubai’s real estate, the prime and super prime markets broke new grounds in 2023, outshining previous years in both sales volume and price increases. Industry experts, CBRE, have chronicled this impressive growth, highlighting a remarkable boost in property value across select Dubai neighborhoods, with predictions pointing to a continued ascent in 2024.

Last year, the bustling market witnessed sales records, especially for upscale properties valued above AED5 million and AED10 million. Strikingly, the year closed with 10,296 and 3,806 sales respectively, marking increases of 54.5% and 68.4%. This surge was predominantly propelled by off-plan transactions, which dominated the upscale sector with over two-thirds of sales.

Notably, demand was concentrated in emerging prime areas, a trend keenly observed by market analysts. Even while established locales like Downtown Dubai, Emirates Hills, Jumeirah Bay Island, and Palm Jumeirah retained their allure as prestigious addresses, the transaction volume slightly receded by 15.5% for properties above AED5 million and by 3.1% for the super prime segment.

Palm Jumeirah, one of Dubai’s crown jewels, remained a hotspot with the highest transaction volume, showcasing a total of 963 sales for properties above AED5 million and 593 transactions for those exceeding AED10 million.

The dip in off-plan sales did not diminish the market’s vitality, as secondary market transactions experienced notable growth. With most of the premium real estate already snapped up and new launches scarce, a moderated transaction rate is anticipated. However, the scarcity has inadvertently fueled price increases.

By the end of 2023’s fourth quarter, the average price per square foot in the prime sector reached AED4,604, up by a notable 22.5%. Destinations such as Jumeirah Bay Island and District One led the pack with 35.6% and 27.2% increases, propelling the average prime asset value to AED28.3 million.

In the super prime fraction, prices surged to AED4,900 per square foot, marking a 20.4% growth. Once more, Jumeirah Bay Island and District One reigned with staggering price spikes of 28.5% and 22.4%, respectively. As such, the average price for ultra-luxe units rounded off at an impressive AED34.1 million in Q4.

Taimur Khan of CBRE pinpoints the dearth of new entries as a contributing factor to the price uptrend in the forthcoming year, with an anticipated, though moderate, softening in growth rates. As the countdown to 2024 ticks on, Dubai’s real estate continues to allure investors with its robust premium market.