Dubai’s new super-luxury residential neighborhoods are getting close to selling homes for Dh100 million or more. Early in February, an Indian family purchased an eight-bedroom villa on “Lanai Island” as part of the Tilal Al Ghaf master development for Dh90.5 million.
According to a representative of Metropolitan Premium Properties (MPP), which closed the deal, the luxurious mansion with a lagoon close by would be delivered in Q1-2027. “It was bought direct from developer – Majid Al Futtaim Properties – and will come with a plot size of 26,000 square feet,” said Nikita Kuznetsov, CEO of MPP.
“Lanai Island is one of two private islands at Tilal Al Ghaf, with 13 mansions, of which nine are ‘shore’ mansions and four are ‘edge’, located along a 1.2-kilometer crystal lagoon.”
“The same villa on Palm Jumeirah would be worth a minimum of Dh250 million”– Oybek Shamsiddinov, Sales Manager at Metropolitan Premium Properties
Late last year, Majid Al Futtaim announced the two “island” projects within Tilal Al Ghaf, which are close to the intersection of Hessa Street and Sheikh Zayed Bin Hamdan Al Nahyan Street.
Tilal Al Ghaf home and plot sales have been averaging around the Dh20 million level, with a few going as high as Dh44 million and nearby, according to market data from DXBinteract.com. Therefore, the Dh90.5 million “sold” tag does set a high standard.
All set for the Dh100m breakthrough?
A push into the Dh100 million plus transaction club should happen soon enough, according to market sources, as the developer has limited the number of properties/plots available on the island and more releases are on the way.
The Dh90.5m transaction
The agent in the most recent deal was Oybek Shamsiddinov, Sales Manager at MPP. The Indian buyer has made other real estate purchases in Dubai.
“They were looking for a property to use themselves, and after convincing them to see the villa on January 31, they bought it the next day,” said Shamsiddinov. “They really liked the community project, villa layout and the finishing. The same villa on Palm Jumeirah would be worth a minimum Dh250 million.”
Super-charged start to 2023
Despite predictions that the demand for luxury properties in Dubai will decline, the market has had a robust year so far, with several purchases taking place at Jumeira Bay island, including one for a Dh410 million penthouse. In Dubai, that did set a new record for a penthouse, but according to sources, that record may soon be surpassed as more foreign investors look for addresses in the UAE. The highest per square foot (psf) transaction in Dubai to date occurred on Jumeira Bay.
similar to the plans being made by the Indian investor who purchased the property at Tilal Al Ghaf.
“Waterfront properties are extremely popular with investors right now and there are very limited units available further contributing to its growing popularity among end-users and investors” – Nikita Kuznetsov of MPP
New destinations and projects emerge
Jumeira Bay’s alternatives had high net worth investors focused on last year, and that fixation is continuing into this one as well. If Dubai Hills was the new place on the radar for high-net-worth investors in 2021. The Palm has continuously improved its image by engaging in high-value transactions.
“Ahead of the summer, the market can expect some more high-value sales – with new locations and projects providing stiff competition for buyer attention,” said an estate agent. “Available stock at existing super-prime destinations is running out.”