Dubai resales in established luxury neighborhoods continue to outperform the city’s new development market, according to a report from Luxhabitat.
Luxury resales totaled approximately AED3.5 billion (US$983 million) in the second quarter, a 1% increase over the same time last year, according to the report published Wednesday, which is based on data collected from Property Monitor, a real estate analytics site.
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Villa resales are showing strong activity particularly in the exclusive Palm Jumeirah, a man-made archipelago in the shape of a palm leaf. Homes on the Palm accounted for three of the top five most expensive villa sales in Dubai in the second quarter, including the most expensive transaction at AED40 million (US$10.89 million).
Other top villa transactions included a villa on Jumeirah Bay Island, an exclusive neighborhood with a limited number of beachfront lots, for AED21.8 million (US$5.935 million). The most expensive villa in Al Barsha, an area in the center of the city near Mall of the Emirates, traded hands for AED20 million (US$5.445 million).
Across the overall market, there were 1,400 villas and 6,652 apartments sold in the second quarter of 2018, according to Luxhabitat.
A number of industry experts say housing prices are finally stabilizing after several years of contraction. The city’s real estate market suffered considerably when oil prices collapsed in 2014, hitting the budgets of some of Dubai’s most affluent residents and foreign buyers.
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The market for off-plan sales has yet to see the same stabilization as resales, and new development pricing remains subdued amid an oversupply of new projects.
Off-plan transaction volumes totaled AED5.8 billion (US$1.579 billion) in the second quarter, a near 28% drop from the previous quarter. Despite the softness in the new development market, another 80,000 units are scheduled to be delivered in 2018, according to Property Monitor.