The sale of properties valued at more than AED 5 million and AED 10 million reached a record level last year, but the prime and super-prime segments saw a drop in overall sales.
Data from CBRE, the real estate consultancy, showed that in 2023, properties valued at over AED 5 million recorded 10,296 transactions, while those valued above AED 10 million saw 3,806 transactions.
This represents a 54.5% increase for properties valued above AED 5 million and a 68.4% increase for those valued above AED 10 million.
Data further showed that off-plan sales accounted for 67.2% of total transaction volumes of properties valued above AED 5 million and 70.8% for properties valued above AED 10 million.
CBRE further revealed that the level of demand showed that most of the sales recorded in the two segments had mostly taken place in nascent developments.
This refers to locations that are only emerging as prime ones. As for prime and super-prime areas, District One, Palm Jumeirah, Jumeirah Bay Island, Emirates Hills and Downtown Dubai fall in these categories.
Prime properties are the ones that are sold at a value of more than AED 5 million in these areas, while super-prime properties are those that are sold for more than AED 10 million.
The prime and super-prime segments saw the total volume of sales transactions decline by 15.5% and 3.1%, respectively.
The highest volume of transactions recorded in both prime and super-prime segments was recorded in Palm Jumeirah.
The total number of units valued at more than AED 5 million that were sold stood at 963, while the total number of properties valued at more than AED 10 million that were sold stood at 593.
The prime segment of the market saw average prices reach AED 4,604 per square foot in the fourth quarter of 2023.
This was a rise of 22.5% from a year earlier, with Jumeirah Bay Island and District One taking the lead, as they saw average prices rise by 35.6% and 27.2% year-on-year, respectively.
As far as the super-prime segment is concerned, there was a 20.4% increase in average prices in the year ending in the fourth quarter 2023, as they climbed to AED 4,900 per square foot.
The most significant increases in the average sales rates were seen in Jumeirah Bay Island and District One, as they went up by 28.5% and 22.4%, respectively.
The average selling prices of super-prime units reached AED 34.1 million in the last quarter of the year, thanks to high-value transactions on Jumeirah Bay Island and Emirates Hills.
CBRE stated that a growth in price is expected in both prime and super-prime segments in 2024 because of a lack of new supply and these segments are expected to remain strong.
However, it also added that they do expect the growth rate in price to taper slightly.