Palm Jumeirah retains the right to be called the most expensive area to buy real estate in Q1 2022

Palm Jumeirah retains the right to be called the most expensive area to buy real estate in Q1 2022

Residential real estate of the island took the leading places in the list of the most expensive sales over the past quarter. In the first three months of this year, four major sales were made, which were highlighted by a record deal for a mansion with an area of 3,066 square meters.

This acquisition cost the buyers 76.2 million dollars. At the moment, this is the most expensive deal in the emirate.

Among the most expensive deals in the top three is, in second place, there is a deal for a mansion in Jumeirah Bay. The building was sold at $24.01 million. The third place was again taken by a mansion in Palm Jumeirah - $23.6 million.

According to these examples, it is obvious that villas still form the basis of demand for expensive real estate. However, the main interest is represented by properties «for finishing» (approx. shell-and-core - complete lack of finishing; there is only a floor, ceiling and walls).

Another property of interest for buyers are branded residences, as well as villas. Their prices are also high, but so far, they have been kept at $20,000 per square meter.

The stock of real estate in the primary market (approx. new buildings, off-plan) has been depleted over the past two years. Mass launches of new projects began to be announced only in the last three months of 2021. Developers tried to ride the huge attention of investors to Dubai caused by the holding of Expo-2020.

Construction companies will need at least a year or two to bring new facilities to the market. Until then, sellers will remain in the most advantageous position: taking advantage of the constantly growing demand, they are already testing the buyer, trying to exceed the specified bar of $20,000.

The question of whether prices will be able to go higher and not scare away buyers remains open.

At the end of the first quarter of 2022, the most active areas for luxury real estate sales were MBR City, Palm Jumeirah and Downtown Dubai. The volume of sales in the latter reached $707.8 million. MBR City and Palm together reached $816.7 million.

Speaking about the segment of luxury apartments, it is worth pointing out that the average price for these properties has reached $653,400, and the cost per square meter is $4,193.

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