Dubai’s luxury residential sector is becoming an increasingly important indicator of investor confidence, with a market report illustrating buyers are continuing to make multimillion-dirham commitments in July.
Developers recorded 244 off-plan residential sales above AED 5m last month, with a combined value of AED 3.42bn. The transactions ranged from the AED 5m to 10m bracket through to the AED 50m to 100m range, showing that demand extends across a broad spectrum of the luxury market.
Analysis by Dubai luxury developer Keturah reveals there were 151 off-plan apartment sales amounting AED 2.3bn in July, while 93 villa transactions generated AED 1.1bn. The average value across last month’s residential off-plan deals was AED 14m. The AED 5m to 10m bracket accounted for the largest number of apartment transactions, with 81 sales worth AED 552.6m, a large proportion of the total value came in the higher price brackets.
Data from DXBinteract shows there were 41 sales between AED 10m and AED 20m worth AED 593.6m, while a further 24 transactions between AED 20m and AED 50m generated AED 708.5m.
“Dubai’s luxury market is demonstrating a depth of demand that goes beyond individual high-value transactions. Investors are continuing to commit substantial capital to Dubai residential property because they see that the city’s long-term fundamentals, international appeal and investment proposition remains strong.”
Talal M. Al Gaddah, CEO and Founder, Keturah luxury brand
Keturah currently has two luxury communities under development in Dubai – Keturah Reserve, the AED 5.7bn bio-living community in Mohammed Bin Rashid City’s District 7, and the Ritz-Carlton Residences at Keturah Resort on the shores of Dubai Creek, adjacent to the Ras Al Khor Wildlife Sanctuary.
Off plan apartment sales by developers last month included four transactions in the AED 50m to 100m bracket at an average value of AED 69.9m, and one of AED 166m.
Villa demand showed a similar pattern, with 60 transactions in the AED 5m to 10m amounting to AED 387.4m, while 22 sales between AED 10m and AED 20m generated AED 317.2m. Ten further villa transactions in the AED 20m to 50m range were worth AED 334.1m while another villa sold for AED 72.7m.
Over the past three months, Dubai developers have recorded 942 off-plan residential sales above AED 5m with a combined value of AED 12.11bn, at an average of AED 12.9m per property. The luxury residential segment is also supported by demand for completed homes. In July, Dubai developers recorded a further 43 ready property transactions above AED 5m worth AED 552.8m, at an average value of AED 12.9m.
