According to data from Dubai real estate market participants, the premium sector of the emirate has seen a huge increase in demand and prices for luxury housing in recent months. Quarterly growth by the third quarter of 2022 amounted to 11.29% in terms of prices and 1.11% in sales, earning $5.96 billion by the end of September. The premium apartment segment performed particularly well, showing quarterly growth of 4.75% and growing to $4.54 billion.
According to data from the Dubai Land Department, the premium market of the emirate recorded 7,552 transactions for the sale of residential real estate by the end of the third quarter of the year. Quarterly growth at the end of September was 7.06%. Specifically, from January to September, 6,940 apartments, 316 villas and 251 townhouses were sold. Geographically, the greatest growth in demand/sales was recorded in the Jumeirah, Za'abeel and Business Bay areas. Prices per square meter grew the most in Jumeirah ($32,065), Jumeirah Bay ($15,546) and Palm Jumeirah ($8,844).
The strong growth of the market in the last 12 months has been provided by a sharp influx of a significant number of ultra-high-net-worth individuals (UHNWI) from several key countries for the local market. Russia, EU countries, Britain, India, China. Different nationalities have different preferences, but investors show a stable interest in apartments and large real estate. New premium areas of Dubai, such as Za'abeel, are also gaining popularity.
Luxury housing plays an important role for the modern economy of Dubai, attracting a large number of rich people who are ready to invest in a country that has become, perhaps, a second home for them. In the last couple of years, the emirate has seen huge investor interest in the local real estate market, the technology sector, and industry. Also, thanks to the excess of UHNWI buyers (reception. Individuals with super-large net worth), the construction sector receives large funds for the development of new areas in the city.
There is a special interest on the part of investors in the Jumeirah, MBR City and Arabian Ranches areas — mainly for the sake of searching for large-sized real estate. In the third quarter, their prices increased by 86.8%, 16.9% and 9.1%, and the price per square meter reached $8,917, $28,944 and $13,553. The Palm Jumeirah, Business Bay and Downtown Dubai districts remained the leaders in terms of income from luxury real estate sales — $1.38 billion, $1.03 billion and $977 million.
