The Al Wasl-Dubai Canal area is quickly becoming the newest hotspot for high-end real estate deals, with properties priced at $10 million or more attracting wealthy investors. As developers seek to offer alternatives to the already popular Palm, Emirates Hills, and Jumeira Bay island residences, this area is expected to see even more launches in the near future.
With 88 purchases priced at $10 million or more in the first three months of 2023, Dubai’s real estate market did well. Sales from these totaled Dh6 billion.
At this rate, chances of $10 million in home sales beating 2022’s full-year tally of 219 such deals are more than rosy. “2023 is shaping up to be another record year for this segment of the market,” said Faisal Durrani, Partner – Head of Middle East Research at Knight Frank. “The depth of demand for homes at this price point from local and international UHNWI (ultra-high net worth individuals) is helping to drive up prices in this exclusive segment of the market.”
No slow down so far
The first quarter statistics show that buyer demand is holding up fairly well at the upper end of the Dubai real estate market. Demand in this market is still being driven by cash-ready deals with foreign purchasers. “Developers are rushing to offer new build options with delivery in 2024-26 to cater to this interest,” said an estate agent. “There’s no point in wasting time thinking how long this boom will continue.”
Gains on psf too
The average price per square foot for these residences costing $10 million or more closed Q1-23 at Dh7,235, representing a 16% rise over the average price per square foot from the previous year of Dh6,250.
The Palm, Emirates Hills and Jumeira Bay accounted for 64% of the large-scale transactions. But “other areas are also growing in prominence and are likely to be classed as ‘prime’ if they continue to entrench themselves as high-end neighborhoods,” said Durrani.
New island in the interiors
Tilal Al Ghaf is the second area that has “quickly joined the growing list of ultra-luxe neighborhoods in Dubai” aside from the Al Wasl-Water Canal stretch. According to Andrew Cummings, Partner – Head of Prime Residential Sales at Knight Frank, “strongly suggesting that Tilal Al Ghaf would soon satisfy our definition for a prime neighborhood,” three properties here sold for over Dh90 million last year, while seven villas fetched over $10 million during Q1-23.
“While the bulk of international UHNWI looking at Dubai are drawn to acquiring second homes on the coast, Tilal Al Ghaf has set a new benchmark for luxury living as an inland community. The shortage of completed waterfront communities and the lack of development sites that can be easily activated suggests that such inland communities will continue to grow in prominence.”