Dh90 million is the cost of most expensive villa in Dubai

dubai - Demand for ready-to-move-in secondary market villas has doubled.

The most expensive property sold in Dubai in 2018 was a villa in Emirates Hills spanning 28,719 sqft built-up area for Dh90 million, according to data from Luxhabitat.

The second most costly property sold last year was a unit in the Bulgari Resort and Residences for Dh60 million. Several other villas in Emirates Hills also exchanged hands for handsome amounts ranging in the millions.

Although the Dubai luxury property sector has performed better than the wider market in 2018, the prime residential market totalled Dh39 billion, which is 11 per cent lower than the previous year, according to Luxhabitat.

The top three areas in terms of sales volume were Business Bay (Dh6.9 billion), Mohammed Bin Rashid City (Dh6.3 billion) and Downtown Dubai (Dh5.4 billion).

"Opening the off-plan market in Jumeirah was a much-needed bolster for the real estate market as it emerged as the top-performing area in 2018. World Islands, City Walk, Port de la Mer, Jumeirah Bay and Madinat Jumeirah Living have all contributed to sales in the area. The Jumeirah area has received an overwhelming amount of interest," said Brigitte Tenbergen, associate
director at Luxhabitat.

The average price per square foot for villas that transacted has increased, indicating interest for higher end and better quality units, the Luxhabitat report said.

Demand for ready-to-move-in secondary market villas has doubled as resident families look to move into villa communities. Arabian Ranches 2 seems to be a popular area, with a 47 per cent increase in sales from the previous year, presumably owing to more launches in 2018.

Data indicates that it is more expensive to buy off-plan properties than in previous years, an 8.4 per cent increase. However, the average size of off-plan units transacted has also reduced from an average BUA of 1,100 sqft to 917 sqft (6.2 per cent).

Andrew Cleator, sales director, Luxhabitat, said: "2019 will continue to be a buyer's market, with great opportunities for both investors and end-users. Price reductions have already started to wane, with some areas showing signs of stabilising. This year, we will see even more bullish developer sales incentives being offered. Last year, we witnessed developers offering DLD fee waivers, free service charges for an initial period and very attractive post-completion payment plans. The latter was partly due to the UAE Central Bank's reluctance to increase the mortgage loan-to-value ratio, but I believe this will be addressed in the coming months as part of the current government stimulus plan.

"Other key drivers to positively affect the market in 2019 include the current interest from international buyers and institutional investors, especially from China. In addition, the government has recently been strengthening diplomatic and international business ties with many countries to bolster both tourist and population numbers."

- business@khaleejtimes.com