On the Palm Jumeirah, a new 10-bedroom custom-built mansion has sold for a record of Dh280 million.
The 33,000-square-foot contemporary white villa has a state-of-the-art living area, seven-star spa hotel amenities (including a gym and a hair salon), and imported and hand-picked book-matched Italian marble. The property has more than 70 meters of private beachfront and is equipped by uber-luxe Italian furniture houses Giorgetti and Minotti.
Between January and November 2021, Dubai’s luxury property market experienced phenomenal growth, with prices rising by an estimated 21% in the first ten months of the year and over Dh135 billion in sales.
Property prices in the luxury segment rapidly recovered after the Emirate’s effective handling of the pandemic, as high-net-worth individuals from Asia, Europe, and Africa flocked to the city to snap up cheaper but luxurious houses.
One triplex penthouse on the Palm Jumeirah sold for Dh180 million in 2021, putting it at the top of the luxury property market.
Property broker Conor McKay of luxury real estate firm Belleview Real Estate oversaw the highest-ever private villa transaction in Dubai.
“One major key to the growth in 2021 was the government’s response to the Covid-19 pandemic. While we experienced a very strict lockdown, within six weeks, Dubai had one of the most comprehensive testing infrastructures globally, allowing life to return to normal almost immediately,” Conor McKay said.
“While a short-term view of the market can be intimidating, when we look at the overall history, we see the current average dirham cost per sq foot of property is only 78 percent of the previous peak in 2014. Consider how strong Dubai is now, compared to then, and you have no option but to predict further significant growth,” said Peter Smithson, sales director at Belleview.
The sale of this Palm Jumeirah mansion set a new record for the highest value residential villa sale in Dubai, according to real estate portal propertymonitor.com.
“To see a transaction of this magnitude illustrates the ongoing strength of Dubai’s property market, particularly in the ultra-high-end segment. The transaction not only beats Dubai’s previous record but closes the gap between Dubai’s luxury market and those of leading global cities such as London, New York, and Hong Kong,” said Zhann Jochinke, COO of Property Monitor.
According to Ata Shobeiry, CEO of Zoom Property, the luxury real estate market will continue to recover in 2022.
“The luxury property market will retain its upwards trajectory in 2022 with more upscale buildings and projects on the rise. Consequently, wealthy foreign investors will show more interest in the sector,” he said.
“The market, on the whole, will benefit from an influx of overseas investors as there’s an increase in demand from Ukrainian and Russian buyers, as well. Moreover, visa reforms, expatriate-friendly policies, and high profit earning potentials continue to attract investors from across the globe, making Dubai a lucrative market for real estate investment,” Shobeiry said.
