Renting an elite villa in Dubai can cost $50,000 per day, while purchasing can cost more than $100 million. Let’s try to analyze the situation with prices in the UAE.
Dubai was ranked among the top four countries with the most vibrant luxury real estate market by a 2022 influx of rich investors. Last year, Knight Frank reported 219 properties worth $10 million and more sold in the emirate. This is only slightly less than in New York (244 transactions), Los Angeles (225) and London (223).
According to the Dubai Land Department (DLD), total luxury property sales in 2022 rose by 93.76% to record $9.5 billion ($4.76 in 2021). And the median price per square foot (one tenth of a square meter) jumped by 45.9% (up to $9 thousand). In 2023, high demand for luxury real estate is still relevant.
Property in Dubai is owned by 830 UHNWI (Ultra high-net-worth individuals), according to Residential Real Estate 2023, prepared by analysts Altrata together with Wealth-X and Realm. Two thirds of these people (66.7 per cent) use their property in the emirate as their main residence.
With a median value of $3.5 million (2022 DLD) for luxury property in Dubai, UHNWI’s real estate transactions may exceed hundreds of millions of dollars. So if we talk about the top, we should mention three largest real estate deals in 2022, villas with private beaches on the artificial island of Palm Jumeira worth from $76 million to $163 million. In this list you can find a villa bought by Indian billionaire Mukesh Ambani for his youngest son, as well as the mansion Casa Del Sole, which has 8 bedrooms, 18 bathrooms, private gym, cinema, bowling alley, jacuzzi and garage for 15 parking spaces. This year also had time to distinguish large deals – apartments in Bulgari Lighthouse Island 2 on the island of Jumeirah Bay cost the owner of $ 112 million, according to local brokers.
As for the buyers from Kazakhstan, the maximum budget for their purchases in 2022, according to the investment broker Tranio, still made an impressive $8.7 million. Who became the lucky owner of elite housing on the coast of the Persian Gulf is still unknown. The names of those involved in transactions in Dubai are rarely made public – the Emirate’s Land Department does not provide such information. Dubai is one of the few world markets where property buyers can remain anonymous.
The most popular luxury properties are located in the coastal areas: Jumeirah Beach Residence, La Mer and the famous island of Palm Jumeira.
Luxury property is readily bought in Business Bay and Downtown. These areas were one of the first to be built in Dubai, so the infrastructure is well developed. There are also the main attractions of both tourists and locals: Burj Khalifa Tower, Dubai Mall, offices of international companies and banks.
Tranio adds that high-quality off-plan facilities quickly exit the market. Usually information about new projects is spread in closed circles even before the official start of sales, and those who have access to developers can choose the most attractive objects first.
Branded residences, including a service from 5-star hotels – one of the the popular facilities among wealthy clients.
Current offers include The Ritz-Carlton Residences at Dubai Creek in Business Bay. Apartments with swimming pool, gym, library and hotel service can be purchased from the developer Mag Lifestyle for $1.5 million or more.
Six Senses brand villas and penthouses are built by Select Group developers on the first line of Palm Jumeira, near the bay. Facilities include a fitness room, swimming pool, spa, sauna, hammam, coworking and children’s club. Future property owners are offered membership in Six Senses Place and a 10% discount on hotel, spa, food and drink, as well as baggage delivery and other hotel services. The completed project is expected in 2024, but all lots from the developer in this location have already been purchased – they can be purchased only at the secondary market. At the start of sales, Six Senses penthouses were worth $2.8 million, villas – from $7.6 million.
The Bulgari Residence is being built not so far from the Jumeirah district under the name of the Italian jewelry house. Prices for apartments, penthouses and villas surrounded by gardens, swimming pools, gyms, shops and restaurants at the developer Meraas start from $ 4 million.
According to Savills, the value of luxury real estate, like the number of rich people in Dubai, continues to grow in 2023, albeit not as fast as the year before. Analysts expect price increases 6-7.9%.