Premium housing areas in Dubai maintain growth trends amid increasing demand

Premium housing areas in Dubai maintain growth trends amid increasing demand

Dubai's real estate market is increasingly predicted to slow down and stabilize growth rates, but this does not apply to the premium segment. Luxury real estate, especially residential, continues to beat the record figures of the past years, driven by both an endless stream of wealthy foreign buyers and a shortage of such goods on the market.

In any case, in the last couple of months, several areas have stood out, driving the market for themselves. and Business Bay, JLT, Dubai and Dubai Sports City. and JVC, Dubayland, DAMAK Hills and Springs. In the segment of luxury apartments, the leadership is occupied by the Center of Dubai, Dubai Marina, Dubai Hills Estate, Palm Jumeirah and JBR, and the villa is Palm Jumeirah, Dubai Hills Estate and Villa.

Data for the first half of 2022 indicate that prices in the affordable segment increased by 8%, and in the elite — by 19%. Additionally, the period from July to September showed two noteworthy results at once. In August, the market broke a 12-year record for monthly sales of real estate in the emirate, reaching 9,720 objects sold, and in September, sales revenue of over $5.4 billion (AED 20 billion) was recorded for the third month in a row.

Among the buyers of the HNW category preferred destinations for the purchase of residential real estate remained the central areas of the emirate: Arabian Ranches, Palm Jumeirah, Dubai Hills Estate, Downtown Dubai and Dubai Marina.

Leadership in the elite segment is shared by Downtown Dubai and Palm Jumeirah. The first is one of the key areas for the premium market and leads in sales of ultra-expensive apartments. Palm Jumeirah holds the leadership in sales of luxury villas. The average cost per square meter of housing in Downtown reached $6,555, and the price increase for the first half of the year was 6.7%. The square meter in Palm Jumeirah reached $10,600, and the price increase for the half-year was 18%.

Among buyers with more modest savings, there is an increase in demand for the suburbs of Dubai, but the leader, so far, remains the central Business Bay — a business-oriented area that shows the most pronounced indicators of demand and price growth among its competitors. The cost per square meter in the district increased to $4,210, which was the result of a 6.4% price increase in the first half of 2022.

According to all available data, villas remain the main commodity in the Dubai real estate market and will continue to significantly exceed the indicators of other categories of real estate, while maintaining excessively active topics of price growth. On the other hand, the key category of buyers of such housing are extremely wealthy individuals who can afford impressive expenses. After all, Dubai is still one of the most affordable luxury housing markets among other global destinations such as London or New York.

Read also