Dubai, United Arab Emirates: According to analysis by LUXHABITAT Sotheby's International Realty and data from the Dubai Land Department, Dubai's super-prime residential market witnessed Dh14.7 billion worth of transactions in the first quarter of 2023, reflecting a contraction of 21.72% from the fourth quarter of 2022 (quarter-on-quarter The super luxury market in Q1 2023 now accounts for 21.7% of the overall Dubai residential market transactions in Q1 2023. The average price per square foot for super luxury properties increased by 21.07% to AED 3,373 per square foot. The average price of a prime property was AED 25.2 million, an increase of 27.49 per cent over the previous quarter.

In its analysis, LUXHABITAT Sotheby's International Realty considered the following areas from the Dubai Land Department that make up the super prime property market - in Al Barari, Downtown Dubai, Dubai Hills (luxury homes only), Emirates Hills, Jumeira Bay, Jumeirah Islands and Palm Jumeirah properties for sale.

The super prime areas that continued to see positive year-on-year sales growth were Jumeirah Bay (220%, Dh2.05 billion), Al Barari (167.53%, Dh926 million), Downtown Dubai (48.78%, Dh3.4 billion) and Emirates Hills (11.62%, Dh613.6 million). The average price of The Palm Jumeirah increased by 17.26% to Dhs9.5 million in the Dhs5.7 billion super prime sale.

Chris Whitehead, managing partner of LUXHABITAT Sotheby's International Realty, said: "As we enter the second quarter, we are seeing a continuation of the large number of residential transactions in the super prime residential areas. This continuity is largely driven by the current shift in lifestyle and wealth of European buyers, as well as the recent trend of institutional investors moving back into the real asset class. In addition, superb turnkey properties continue to be in low supply and sellers will decide on pricing and ensure a positive trend to drive the area through a historically slow summer."

In the Super Prime market, 1,584 flats were sold for a total turnover of Dhs9.8 billion, representing 66% of the overall Super Prime turnover. The top three areas accounting for the highest volume of super prime flat sales were The Palm Jumeirah (Dhs3.7 billion), Downtown Dubai (Dhs3.4 billion) and Jumeirah Bay (Dhs1.8 billion). The average cost of a super prime flat was Dhs28.4 million, an increase of 34.62% over the previous quarter, with a floor area of 5,379 sq ft. 70% of all super prime flat units sold in the first quarter of 2023 were from the super prime off-plan residential market.

In the super-premium villa market, a total of 294 villas were sold with a total turnover of Dhs5.6 billion. The top three regions accounting for the highest number of super-premium villa sales were The Palm Jumeirah (Dhs1.9 billion), Dubai Hills (Dhs1.6 billion) and Al Barari (Dhs926 million). The average cost of a super premium villa was Dhs36.8 million, an increase of 37.2% year-on-year. The average price/sq ft of a super-premium villa jumped by 53.15% YoY to Dhs3,547/sq ft. Eighty-eight per cent of sales in the super trophy villa market came from the secondary super trophy residential market.

Jumeirah Bay had the highest average price at Dhs10,594 per square foot, with properties averaging Dhs93.3 million, despite only 22 units being sold in the first quarter of 2023, truly giving it a real claim to the title of 'Island of Billionaires'. Flats in Jumeirah Bay sold for an average of Dhs91.2 million, reflecting an increase in average prices of as much as 40%. The most expensive of these was located at Bulgari Lighthouse & Bulgari Resorts & Residences, which also topped the list of most expensive deals with a price tag of Dhs410 million. Four of the top ten deals come from Jumeirah Bay. After Jumeirah Bay, prices per square foot were highest at Palm Jumeirah (AED 3,106 per square foot) and Emirates Hills (AED 2,396 per square foot). Jumeirah Bay also saw the highest growth in sales volume, up 220% YoY.

With sales in the super prime secondary market up 220% to Dh552 million, Al Barari proved to be the most popular area to buy in this category, followed by Downtown Dubai (up 16.82% to Dh1.1 billion) and Emirates Hills (11.6% to Dh613 million).