The sales in real estate sector in Dubai, especially in the commercial real estate segment, has jumped 38% during the first 8 months of this year to $1.09 billion, compared with $790 million in the corresponding in 2022.
This reflects the growing importance of Dubai as a global commercial and investment Centre and keeps pace with the growth in the movement of establishing and expanding businesses and projects, while penthouse deals have strengthened the record recovery of the real estate sector in the Emirate.
According to data from the Dubai Land Department, the number of commercial real estate sales deals in Dubai from January to the end of August increased by 18% to 2,416 deals, compared with 2,050 deals during the first 8 months of 2022, supported by the influx of companies and investors from around the world to Dubai.
Commercial real estate sales recorded in the first 8 months included 1,789 office sales deals worth $790 million, compared with 1,492 office sales deals with a total of $540 million in the same period of 2022, an increase of 45% in the value of sales and 20% in the number of deals.
As many as 74 sales deals were recorded for offices in projects under construction, valued around $ 12.55 million, and 1,715 sales deals were recorded for ready-made offices, with a total of $760 million.
The Business Bay area dominated the largest share of office sales in Dubai with 835 office sales deals worth $350 million, followed by Jumeirah Lakes Towers with about 602 deals worth $219.17 million, the Dubai Land Department statistics revealed.
Penthouse.ae, powered by Metropolitan, a Dubai-based full-service real estate agency specialised in serving the needs of Ultra High Net Worth Individuals (UHNWIs), has set a record for the highest price per square foot for a property on the iconic Palm Jumeirah.
The deal, at $3372.45 per sq ft, is the second highest in Dubai after an apartment in the Bulgari Resort and Residences that was sold for $3687.12 per sq ft, further solidifying Penthouse.ae’s position as a leader in the high-end real estate market.
The three-bedroom duplex apartment in the Royal Atlantis was sold for $11.98 million by Olga Mannila, Sales Manager. The property, which offers breathtaking views of Palm Jumeirah, a private swimming pool and an array of lavish features and amenities, was acquired by a first-time Russian investor.
Petri Mannila, Head of Luxury at Penthouse.ae, said that global investors continue to exhibit a keen interest in Dubai’s exclusive real estate offerings.
“This landmark deal further underscores the continued interest in branded residences, including iconic names like SLS Residences, Armani, Six Senses, and the Royal Atlantis. High-net-worth individuals, entrepreneurs, institutional investors, and family property funds are driving demand for luxury properties north of $5.45 million, resulting in a shortage of available units for both end-users and investors in the market,” he said.
According to him, with supply constrained and prices maintaining an upward trajectory, the current window of investment opportunity is exceedingly promising. Dubai’s luxury property market has witnessed substantial double-digit growth in the first half of this year, with a positive outlook forecasted for the next 3-5 years.
“The surge in demand for luxury real estate in Dubai has been remarkable, fuelled by an influx of HNWIs from around the world. According to published market reports, the Dubai luxury property market experienced an astounding 400% growth in 2022 compared to the previous year. The momentum has persisted into 2023, with the market nearing the halfway mark of 2022’s accomplishments within the first quarter,” he added.