STOCK Construction in Dubai economy skyline
Developers have multiple offplan projects running in and around Dubai Water Canal. The area is picking up some major buyer interest too for $10 million and over homes. Image Credit: Bloomberg

Dubai: The new homes in the Al Wasl-Dubai Canal area is emerging as the city’s latest hotspot for $10 million plus deals as wealthy investors keep chasing all available options. This particular area will likely see more launches as developers offer options outside of the Palm, Emirates Hills and Jumeira Bay island when it comes to residences with these kind of price tags.

Dubai’s property market did well in the first three months of 2023, with 88 deals being priced at $10 million or over. These netted a combined Dh6 billion in sales.

At this rate, chances of $10 million home sales beating 2022’s full-year tally of 219 such deals are more than rosy. “2023 is shaping up to be another record year for this segment of the market,” said Faisal Durrani, Partner – Head of Middle East Research at Knight Frank. “The depth of demand for homes at this price point from local and international UHNWI (ultra-high networth individuals) is helping to drive up prices in this exclusive segment of the market.”

No slow down so far

The first quarter numbers affirm that buyer interest at the top end of the Dubai property market is holding up quite well. Cash-ready transactions featuring overseas buyers are what continues to drive demand in this space. “Developers are rushing to offer new build options with delivery in 2024-26 to cater to this interest,” said an estate agent. “There’s no point in wasting time thinking how long this boom will continue.”

What $1m gets you in Dubai property
Spending $1 million gets the property buyer around 1,130 square feet of living space in any of Dubai’s three prime neighbourhoods - the Palm, Emirates Hills and Jumeira Bay. Dubai is the 16th most 'affordable-luxury' market in the world, according to Knight Frank. This means $1 million 'buys three-times more prime residential space than cities like London, New York or Singapore'.

Gains on psf too

The average price per square foot on these $10 million and over homes closed Q1-23 at Dh7,235 per square foot – and that amounts to a 16 per cent increase on last year’s average of Dh6,250 psf.

Three locations – the Palm, Emirates Hills and Jumeira Bay – accounted for 64 per cent of the super-sized deals. But “other areas are also growing in prominence and are likely to be classed as ‘prime’ if they continue to entrench themselves as high-end neighbourhoods,” said Durrani.

New island in the interiors

Outside of the Al Wasl-Water Canal stretch, Tilal Al Ghaf is the other location that has 'quickly joined the growing list of ultra-luxe neighbourhoods in Dubai'. Last year, three homes here sold for over Dh90 million and during Q1-23, seven villas fetched over $10 million, 'strongly suggesting that Tilal Al Ghaf will soon meet our definition for a prime neighbourhood', according to Andrew Cummings, Partner – Head of Prime Residential Sales at Knight Frank.

“While the bulk of international UHNWI looking at Dubai are drawn to acquiring second homes on the coast, Tilal Al Ghaf has set a new benchmark for luxury living as an inland community. The shortage of completed waterfront communities and the lack of developments sites that can be easily activated suggests that such inland communities will continue to grow in prominence.”

More to follow...