With properties costing Dh300 million and more setting new standards, the stakes – and prices – have increased for ultra-luxury homes in Dubai. Alpago Properties revealed on Wednesday, June 23, that it was constructing six villas on the Palm’s “Billionaire Row” with prices ranging from Dh120,000,000 to Dh300,000,000.
At Dh300 million, it doesn’t end. The bar has been raised significantly by a brand-new villa that fam Properties have listed on Jumeira Bay Island for an outrageous Dh350 million. Is Dubai’s freehold real estate market prepared to compete with properties priced at $100 million?
The Dh280 million purchase of a mansion on the Palm is the largest deal completed to date. The new collection of homes is aiming for this record.
As more affluent investors rush to buy properties in Dubai, developers and investors have increased activity in the off-plan property market since March. According to market sources, there are still a lot of potential Russian and CIS purchasers looking around for the ideal neighborhoods and homes (ready and off-plan), and these could lead to deals being done within “days or weeks.”
“By the looks of it, Dubai’s property market is not taking a summer break – there are multiple deals that are on the verge of getting signed,” said an estate agent that specializes in deluxe properties. “These are all cash purchases, and the last 10 days of June could see more happening.”
Right price levels
According to Firas Al Msaddi, CEO of fam Properties, persistent demand is the reason asking prices are increasing and approaching Dh300 million and higher. Investor interest in the UAE is heavily influenced by how it managed the pandemic, particularly after the lockdown. This purchasing interest was only accelerated by the residency reforms. A new, more intense round of buying was then sparked by the war in Ukraine.
“The ultra-luxury residential market in Dubai was severely under-priced prior to the pandemic,” said Al Msaddi. “When Dubai managed to get the coronavirus under control before any other place in the world, only the ultra-wealthy could fly and move during those days. It was the tipping point for the property market in Dubai.
“This is not just being lucky. Luck is when the opportunity meets preparation. Dubai was well-prepared.”
Changes across the board
Off-plan launches are happening often; just now, Damac is launching two twin-tower projects in Safa. Safa Two, the most recent one, incorporates eco-friendly and adventurous components into its brick, glass, and mortar exterior. The race is on to pique the interest of international investors.
The growing flow of investor money into risk-free assets is not solely being fueled by Dubai’s real estate market. With studios starting at just under Dh1 million, Aldar in Abu Dhabi unveiled its newest Saadiyat Island property. Undoubtedly, even studios are becoming more opulent, and there’s also the fantastic location close to Abu Dhabi’s cultural landmarks like the Louvre and Guggenheim.
Only villas and townhouses are permitted in Arada’s forest-themed “Masaar” community in Sharjah, along with a lot of vegetation. The element of exclusivity works well with picky investors.
This style is not just found in ultra-luxury projects. Danube Properties and Samana Developers have started developments in the more inexpensive area that go beyond the typical swimming pool. There are several units that have access to their own pool, and other developers ought to soon adopt this strategy as well.
Whether it’s a Dh1 million apartment or a beachfront home worth close to $100 million, investors will discover that all possibilities are being covered in Dubai’s real estate market.
Being the playground of the world’s wealthiest individuals, ultra-luxurious residences are more important now than ever – Murat Ayyildiz, Chairman Of Alpago Group