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By Sunil Kumar Singh
April 7, 2016 | 08:00 | Dubai
Dubai prime residential market has outperformed the broader residential property market in Q1 2016. Prime residential sales almost doubled from last quarter, with the Dubai Marina emerging as top performing area with AED 578 million in sales, according to Luxhabitat, a Dubai-based high-end real estate company. The prime residential market beat the overall residential market by nearly doubling the volume of sales from Q4 in 2015. This quarter, the prime residential market completed AED 3.2 billion in sales compared to AED 1.6 billion in Q4 2015, showing renewed investor confidence in the real estate market. Communities considered as prime residences include Emirates Hills, Palm Jumeirah, Downtown Dubai, Dubai Marina, Jumeirah Islands, Meadows, Lakes, Victory Heights, Business Bay, Jumeirah Lake Towers, and Arabian Ranches. The overall residential market on the contrary showed a decline in sales from the previous quarter, revealing a 16% drop in total value of sales from AED 6.9 billion to AED 5.8 million.
What could be attributed to the increase in prime residential market sales is the slight decline in price points (in AED/sqft) over the last quarter by 1%, compared to the overall residential market which declined by 2% from the last quarter. Prices in the prime residential markets are 28% higher than the overall market in Q1 2016. Luxury Sales Director, Ian Kirkby says that there is a renewed interest amongst buyers. “The main reasons include the new accounting policies from private banking in the European countries, changes in tax laws in India and the general global economic situation. A lot more UHNWIs are finding Dubai to be a safe haven for investing their properties.” In the prime residential market, apartments sold three times as much as villas, with Dubai Marina closing AED 578 million in sales, followed by Palm Jumeirah apartment sales at AED 341 million. In the villa market, the Emirates Hills area dominated with AED 263 million in sales, followed by the Palm Jumeirah at AED 237 million and The Springs & Meadows not far behind at AED 236.7 million.