Following years of a slumped market since oil prices tanked in 2014, Dubai’s prime resale residential market logged an uptick in sales volume in 2017, according to a report by Dubai-based high-end property brokerage Luxhabitat.
The total volume of transactions in 2017 for the secondary—or resale—prime residential market was AED 13.1 billion (US$3.56 billion), an approximate 10% increase since last year, the report, released last week, said.
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According to the report, 82% of the total number of secondary transactions in 2017 were for apartments, including an AED 36-million-unit (US$9.8 million) at the 35-story Volante tower and an AED 30-million purchase (US$8.16 million) at FIVE Palm Jumeirah.
The top-three performing areas were the Dubai Marina, transacting approximately AED 3.34 billion (US$909 million), followed by the Palm Jumeirah (AED 2.32 billion, or US$631 million) and Downtown Dubai (AED 1.54 billion, or US$419 million). These three areas alone accounted for 42% of Dubai’s secondary prime residential market, the report said.
But it was the off-plan market that reigned supreme in 2017. The total prime residential off-plan market was worth AED 16 billion (US$4.35 billion). The most expensive off-plan deal was also the city’s priciest of 2017, an AED 100 million (US$27.22 million) transaction at One Palm on the eastern tip of the Palm Jumeirah’s trunk, the report said. Upon completion in 2018, the penthouse will have five bedrooms, several living areas with views of the Dubai Marina and almost 11,500-square-feet of exterior space, including several balconies, terraces and a rooftop area, Mansion Global previously reported.
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Downtown Dubai saw the most sales of off-plan homes (AED 5.8 billion, US$1.57 billion), followed by the new communities of Dubai Creek Harbour (AED 2.9 billion, US$789 million) and Mohammed bin Rashid City, inclusive of Dubai Hills (AED 2.7 billion, US$735 million).
"I have experienced a strong demand in off plan, especially in the higher segment and mostly situated on the beachfront," said Brigitte Tenbergen, associate director at Luxhabitat. "Most of these developments will be handed over in 2018 or mid 2019 and all have show apartments, which makes the choice very easy. The existing developments are getting ‘tired’ and clients are looking for modern, contemporary design and open spaces with great views and good quality."