Dubai: The stakes – and prices – have been raised for super-luxury homes in Dubai, with Dh300 million and over properties setting new benchmarks. On Wednesday (June 23), Alpago Properties confirmed its was building six villas on the Palm’s ‘Billionaire Row’ and with prices from Dh120 million to Dh300 million.
It doesn’t stop at Dh300 million. There is a new villa listed at Jumeira Bay Island for an eye-popping Dh350 million, represented by fam Properties, and that sure raises the bar by a distance. So, is Dubai’s freehold property market ready for its tilt at $100 million homes?
The biggest deal struck to date is the Dh280 million for a mansion on the Palm. It’s this record that the new set of homes have in their sights.
Since March, developers and investors have cranked up activity in the offplan property market as more wealthy investors make a beeline for homes in Dubai. There are still many prospective Russian and CIS buyers scouting around for the right locations and homes (ready and offplan) and these could result in deals being struck within ‘days or weeks’, according to market sources.
“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
Firas Al Msaddi, CEO of fam Properties, says that asking prices heading towards Dh300 million and above is a direct outcome of sustained demand. A lot of the investor interest has to do with how the UAE handled the pandemic and especially the post-lockdown phase. The residency reforms only accelerated that buyer interest. And then came the conflict in Ukraine, which set off another heightened round of buying.
“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
Offplan launches are coming thick and fast – Damac now has two twin-tower launches at the same location, in Safa. The latest one, Safa Two, adds elements of green and adventure within its brick, glass and mortar exterior. The rush is on to capture the global investor interest.
It’s not just Dubai’s property market that is feeding into the increased flow of investor funds into risk-free assets. Aldar in Abu Dhabi launched its latest Saadiyat Island project, pricing studios at just under Dh1 million. Clearly, even studios are getting the deluxe touch, and plus, there is also the prime location near Abu Dhabi’s cultural icons such as the Louvre and Guggenheim.
In Sharjah, Arada’s forest-themed ‘Masaar’ community sticks to the premium trappings, allowing only villas and townhouses, plus a lot of green cover. With finicky investors, the touch of exclusivity pays off.
This trend is not confined to super-luxury projects. In the more affordable space, Danube Properties and Samana Developers have launched projects that offer more than just the standard swimming pool. There are multiple apartments that have access to their own pool, and this is a tack other developers too should be following shortly.
Investors will find all options are getting covered in Dubai’s property market – whether that’s a Dh1 million apartment or a near $100 million beachfront dwelling.