Dubai luxury real estate sales jump 25 percent in Q1 as prices decline

DUBAI: Sales of prime villas and apartments in Dubai rebounded in the first quarter of 2021 helped by a decline in prices as the emirate’s property market looks to recover from the coronavirus pandemic.

The value of sales in the prime real estate segment rose 25 percent from the previous quarter to 11.6 billion dirhams ($3.16 billion), Luxhabitat Sotheby’s said, citing data from the Dubai Land Department. A total of 3,450 apartments and 586 villas changed hands.

Properties in Palm Jumeirah topped the charts in terms of sale value at 2.70 billion dirhams, followed by Mohammed bin Rashid City with 1.37 billion dirhams and Business Bay at 1.27 billion dirhams.

Prime apartment prices fell 6.3 percent to an average of 1,315 dirhams per square foot, leaving the mean apartment costing 2.07 million dirhams. The average selling price of a prime villa increased by 3 percent while the average size increased by 10 percent, suggesting a decline in price per square foot.

The most expensive property transaction in Dubai in the first quarter was a 11,950 square foot villa on Frond N in Palm Jumeirah for 111.3 million dirhams. Second was a 44,952 square foot home in Sector R of Emirates Hills for 68 million dirhams.