While the total number of sales in the prime and super-prime segments decreased last year, the sale of properties valued at more than Dh5 million and Dh10 million reached a record level.
According to real estate consulting firm CBRE, properties worth more than Dh5 million and Dh10 million saw 10,296 and 3,806 transactions, respectively, in 2023.
This translates to increases of 54.5 percent and 68.4 percent, respectively.
As per the report, off-plan sales constituted 67.2% and 70.8% of the total transaction volumes for all properties valued at Dh5 million or more, and Dh10 million or more, respectively.
The majority of sales in these two segments have occurred in relatively recent developments, many of which are still evolving into prime locations, according to the statement that also mentioned the high level of demand for these products. Prime and super-prime areas include Downtown Dubai, Emirates Hills, Jumeirah Bay Island, Palm Jumeirah, and District One. Properties sold in these areas for more than Dh5 million are classified as prime properties, and those sold for more than Dh10 million are classified as super-prime properties. The prime and super-prime segments saw a decline of 15.5% and 3.1%, respectively, in the total volume of sales transactions.
Palm Jumeirah had the highest volume of transactions in the prime and super-prime market segments; 963 units totaling more than Dh5 million and 593 properties totaling more than Dh10 million were sold.
Price growth
Average prices in the prime segment of the market increased by 35.6 percent and 27.2 percent year over year to Dh4,604 per square foot in Q4 2023, respectively, a 22.5 percent increase from the previous year, with Jumeirah Bay Island and District One leading the way. The average price at which prime residential assets sold in the communities under CBRE’s management was Dh28.3 million.
In Q4 2023, the super-prime segment’s average price rose by 20.4% to Dh4,900 per square foot.
District One and Jumeirah Bay Island saw the biggest increases in average sales rates, at 28.5 and 22.4 percent, respectively. Due in part to good deals on Emirates Hills and Jumeirah Bay Island, super-prime units in a few CBRE-monitored submarkets saw record average selling prices of Dh34.1 million in the fourth quarter of the year.
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