Properties on the Palm topped the list of the most expensive homes sold in Dubai during the first three months of 2022 with four entries, aided by a record Dh280 million transaction for a 33,000 square foot mansion on the island’s Frond N. By a long shot, that is the most expensive deal in town.
According to Luxhabitat Sotheby’s data, a Dh88.2 million mansion on Jumeira Bay Island came in second place, while another Palm home sold for Dh87 million. Villas are clearly fueling demand, and shell-and-core units, in particular, are in high demand.
“Shell-and-core villas are among the highest demanded properties which end-users are looking to put their signature on,” said Chris Whitehead, Managing Partner at the brokerage firm. “Second only to off-plan branded residences, which are reselling for highest premiums recorded.”
The price tags on such branded properties — from the likes of Atlantis, The Dorchester Collection, and others – have topped Dh6,800 per square foot. With new Palm launches set to test these levels, the asking prices could be creeping higher.
On the villa front, investors with units in hand — preferably new ones – are doing nicely in the midst of burgeoning demand. It will be a year or two before Dubai sees a steady stream of new villa construction. This period of time will allow existing owners to see if purchasers are willing to pay higher asking prices. (However, don’t make drastic price increases; this will simply deter purchasers.)
Happening locations
MBR City, the Palm, and Downtown were the busiest on the transaction side for upmarket properties in the first quarter, with the first two accounting for over Dh3 billion in deals apiece. The total cost of the Downtown area was Dh2.6 billion.
Market watchers anticipate another strong quarter, with more European buyers expected to enter, based on April’s tendencies. According to Luxhabitat Sotheby’s research, the average apartment sale in the premium space was Dh2.4 million, with a per square foot price of Dh1,431.