Search by map
Demand for premium real estate deepens the statistical gap in price and demand growth between average luxurious and affordable price segments in Dubai. Read more for how much prices for luxury villas and penthouses increase.
If we consider wider market cycle for housing prices from a longer perspective, we’ll see that prices for luxury mansions, villas and apartments usually outperform the average per sq. foot among all city communities, which is true for all major global cities.
In the period from 2012 to 2014, the price gap between ordinary and luxury Dubai real estate continually widened, as rich investors kept pouring large financial flows into luxury properties. However, after the market downturn in 2014, affordable housing attracted more demand, resulting in a spread compression.
"Spread widening was witnessed at the inception of the 2012 bull market cycle, suggesting the onset of another general price rise, similar to phenomena that is witnessed in global real estate markets," observes Hussain Alladin, head of Global Capital Partners.
After 2014, the difference in price between conventional housing and premium apartments reduced to 340 per square foot in the apartments segment, and to 265 per square foot in the villas segment. In this cycle, the demand for affordable housing is much higher, which means that the difference in price can be much greater.
The analysis of the price spread between ordinary and luxury housing by areas can be most clearly illustrated through price changes comparison in Dubai Marina and the island of Palm Jumeirah. In prices in both real estate segments tend to a outstrip the average and move gradually towards creating a single average, common for both market segments, uniting developers. And on , prime real estate market has surpassed expectations for price increases, and besides, there are strong deviations from the average value, depending on the quality of the building, the overall development’s prestige, and, especially, its location on the island.
The gap in price for the similar accommodation in Dubai Marina and , on the contrary, has narrowed, as the mid-priced housing market in JLT has started to gain momentum.
And in the segment of villas have outstripped and Springs by the rate of increase in prices for elite housing, primarily due to a large influx of new, more expensive developments.
If you want to be the first to get the latest analytical reports and news on the Dubai real estate market, sign up for our newsletter and, and contact IMEX Real Estate for sale/purchase or lease/renting real estate units of any price category. Our contacts:
Tel.: +7 903 232 80 80 Oleg Lavrik (Whatsapp, Viber, Telegram)
Tel. UAE: +971 (50) 2528188
Toll Free in Dubai: 800-IMEX (800-4639)
IMEX REAL ESTATE BROKER LLC, UAE
Office 2502, Marina Plaza, Dubai Marina, Dubai, UAE
Email: pm@IMEXre.com
Skype: resident69
