Dubai’s high-end property market is fresh from a prosperous second quarter that saw big-ticket dealmaking in the Emirate surge, according to a report from LUXHABITAT Sotheby’s International Realty.
Prime sales jumped 43.8% in the second quarter compared to the previous quarter, demonstrating the real estate market recovery from the coronavirus pandemic.
“The post-Covid resilience of U.A.E.’s economy is attracting immense wealth from across the world and specially from Europe, England and [the] Americas,” Chris Whitehead, managing partner of Luxhabitat Sotheby’s International Realty, said in the report, released Sunday. “This exponential growth in high-net-worth end-user buyers is here to stay and it will increase the demand for luxury sector properties through 2021 to next year.”
Of the luxury homes that changed hands between the start of April and the end of June, 4,681 were apartments and 818 were villas, according to the report, which used data from the Dubai Land Department.
Combined, they totaled AED 16.7 billion (US$4.5 billion) in sales volume. The most expensive residence sold in the second quarter was a villa in Palm Jumeirah, the city’s man-made, palm tree-shaped archipelago, which sold for AED 119.5 million.
With a total of AED 4.2 billion being spent on luxury real estate in the enclave during the second quarter, Palm Jumeirah ranked as the most moneyed of Dubai’s neighborhoods, followed by Mohammed Bin Rashid City—or MBR City—and Downtown Dubai, the report said.
The jump in demand has also contributed to a 1.4% increase in prices.
Last year, the Covid-19 pandemic and an oversupply of inventory combined with low oil prices resulted in a tumultuous time for Dubai’s property market, which saw prices drop 8%, according to a January report from JLL.
Article Source: Mansion Global