Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
The third quarter of this year marked a record-breaking period for luxury real estate transactions in Dubai. A stunning villa in Palm Jumeirah was sold for an eye-popping Dh275 million, earning the title of the most expensive villa sold during Q3 in Dubai. Not far behind, the priciest apartment in the area changed hands for a remarkable Dh216 million, highlighting the irresistible appeal of Dubai’s ultra-prime properties. These insights were revealed in a quarterly report from a leading real estate consultancy.
In total, 424 residential properties valued over Dh20 million each were sold in Dubai during Q3 2024, according to Cushman & Wakefield Core. This reflects a robust 41% increase compared to Q3 2023. The report noted that Palm Jumeirah continues to be the top choice for ultra-prime transactions.
Prathyusha Gurrapu, Head of Research and Consultancy at Cushman & Wakefield Core, stated: “As demand grows among ultra-high-net-worth individuals for waterfront properties and branded residences, we expect this segment to remain strong, driven by the ongoing influx of global wealth to Dubai.”
Dubai saw an impressive 18% year-on-year (YoY) increase in rents during the third quarter, according to the report. Apartment rents experienced a significant 19% rise, while villa rents climbed more modestly by 13%.
Among the villas, Jumeirah Village Circle recorded the highest YoY rental increase at a staggering 48%, followed by Jumeirah Park at 32% and Emirates Hills at 20%.
Apartment districts enjoyed even more remarkable growth, particularly in more affordable areas. Discovery Gardens led the charge with a 28% increase, followed closely by Dubai Sports City at 26% and Dubailand at 22%.
In Q3 2024, Dubai delivered 9,157 residential units, bringing the total for the year to 22,900 units, according to the report. An additional 10,700 units are expected to be delivered in Q4, potentially raising the annual total to around 33,600 units. While supply in 2024 remains moderate, the development pipeline is picking up steam, with significant handovers anticipated over the next two to three years. This increase in supply could aid in stabilising the market, the report suggested.
City-wide sales prices saw a robust 20% YoY increase. Breaking it down by segment, villa sales prices surged by 23%, while apartment prices closely followed with a 19% rise compared to the same period last year.
The office market in Dubai also showed strong performance, with city-wide occupancy reaching 91% and rents climbing by 19% year-on-year. “Grade A office spaces, boasting a 94% occupancy rate, are particularly sought after,” the report noted.
