A Gateway to Luxurious Living

high-end residential units costing upwards of $10 million in the first six months of the year, and topping London, New York and Paris for the first time, Knight Frank’s Destination Dubai 2023 report revealed.

The market saw 176 high-end property sales that exceeded $10 million during the January-June period, including some of the headline-grabbing deals such as a whopping Dh410 million deal for a penthouse in the Bulgari Lighthouse residence on Jumeirah Bay Island.

The increased global focus on Dubai has also led to a boom in the off-plan sales market, raising its share to about 50 per cent of all property sales, in the first half of 2023, the Allsopp and Allsopp H1 2023 market report said.

According to Petri Mannila, Head of Luxury, Penthouse.ae, the UAE has emerged as a quintessential global destination, renowned for its unique blend of culture, innovation and luxury. The country, especially the city of Dubai with its reputation as a vibrant and cosmopolitan hub, combined with iconic attractions and a diverse lifestyle, has made it a magnet for high-net-worth individuals (HNWIs) seeking exclusive properties that offer both comfort and prestige.

“Dubai’s robust and resilient economy, visionary leadership and business and tax-friendly policies, and attractive visa schemes provide a stable platform for investment, attracting UHNWIs and institutions looking for secure avenues to invest and grow their wealth.

Over the past year, we have seen a lot of investment from not only investors but end users and companies looking to relocate to the market for its safety and unparalleled quality of life,” Mannila added.

RECORD-BREAKING SALES IN H1 2023

Data analysed by LUXHABITAT Sotheby’s International Realty, based on information from the Dubai Land Department, reveals that Dubai's prime residential sector achieved a total transaction value of Dh14.7 billion during the first quarter of 2023.

In the initial quarter of 2023, the super prime luxury real estate segment accounted for a significant 21.7 per cent share of the entire Dubai residential market. This exclusive sector encompasses renowned areas such as Al Barari, Downtown Dubai, Dubai Hills Estate, Emirates Hills, Jumeira Bay, Jumeirah Islands, and Palm Jumeirah.

Transactions That Made Headlines In 2023

DUBAI'S TRANSFORMATION INTO LUXURY PROPERTY HUB

Dubai's prime property sector experienced substantial capital value growth, registering an impressive 12.4 per cent increase in the past year, as reported by Savills. According to Forbes Global Perspective, one of these properties, a villa valued at Dh600 million, situated on Frond N of Palm Jumeirah, ranked as the third most expensive prime property sold globally in the preceding year. Media sources indicated that the buyer was the Indian billionaire Mukesh Ambani, who also serves as the chairman of Reliance Industries, making it the most costly villa purchase in Dubai.

Another villa, located within the Palm's environs, changed hands for Dh302.5 million and secured the 17th position among the world's priciest property sales in the same period.

The third property, a custom-built villa valued at Dh280 million, occupied the 19th position on the global list of most expensive property sales for the year.

For Robert Thomas, Head of Agency, Cushman and Wakefield Core, Dubai continues to see record-breaking transactions, both in terms of sales values and volumes transacted. This is further evidenced by the successful launch and take-up of many luxury properties across Dubai.

Thomas further emphasised: “Ultra-prime districts like Palm Jumeirah, Emirates Hills and Jumeirah Bay have witnessed a substantial 103 per cent increase in sales prices compared to 2014 peak values for properties priced Dh10 million and above. On the back of strong HNI demand from international and resident buyers and highly favourable socio-economic drivers, the Dubai ultra-prime sector is expected to continue witnessing growth in the near term. Dubai continues to be competitively priced and offers a lot of value for ultra-prime properties compared to other global cities. Established beachfront districts with iconic views such as Palm Jumeirah and Jumeirah Bay along with Downtown Dubai and other luxury golf/waterfront projects will continue to sustain demand in the near to mid-term due to their location, developer profile and unique project positioning.”

Mudasir Mushtaq, CEO, DRE Homes, highlights the unique confluence of factors that make Dubai a compelling investment destination. He said: “Safety is paramount, providing a secure environment for investments. Political stability and effective governance create an atmosphere of trust and reliability. The market remains reasonably priced compared to comparable destinations, offering value to investors. The Dirham's peg to the Dollar ensures monetary stability. Access to international education nurtures a diverse and skilled workforce. Beyond this, Dubai's appeal lies in its sustainable lifestyle, buoyed by a robust service-driven industry, setting it apart from many other locations in the realm of real estate investment.”

Furthermore, Wani asserts: “ Dubai's infrastructural development is second to none, constantly evolving to meet the demands of a modern cosmopolitan city. The city's commitment to innovation and technology integration is a result of its forward-thinking approach. With a vibrant cultural scene and a strong emphasis on sustainability, Dubai continues to redefine luxury living and investment opportunities in the realm of global real estate.”

— anam@khaleejtimes.com

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