Dubai's super-prime residential market during Covid lockdown

Despite the Covid-19-enforced lockdown, there were six real estate transactions in Dubai above $10 million between March and June, worth $80m in total.

According to the latest research from real estate outfit Knight Frank, that number is down 52.9 percent from the 13 properties sold (worth $173m) in the same period last year, while there were eight transactions above $10m in total in the first half of 2020.

“Given this segment of the market is a relatively nascent, although a rapidly growing segment, activity is very much dictated by the availability of quality stock which in recent times is becoming relatively limited, this may have contributed to declining transaction volumes.”

The research revealed there had been 153 residential real estate transactions above $10m across the globe over the three-month period from March to June, worth around $3.2bn.

“Dubai’s mainstream and prime markets ($1m+), a more appropriate gauge to determine the health of the market, have fared comparatively better with transaction volumes only falling by 13.4 percent and 18 percent year-on-year in the year to date H1 2020 respectively.”

Dubai’s activity was on a par with that witnessed in Sydney and was ahead of Miami (four), Orange County (four), Geneva (three) and Melbourne (one).

London saw the largest increase and takes the top spot with an average transaction value of $38m, compared to $16.9m in 2019 – the average in Geneva also jumped, while Hong Kong, which usually sits in first place, fell to third position.