The real estate theme for 2021 was certainly the exponential rebounding of Dubai’s uber-luxury residential market, with Knight Frank previously reporting that in the ultra-prime bracket, the number of $10 million plus homes sold smashed the previous annual record set back in 2015. Unsurprisingly, the Palm, Emirates Hills and Jumeira Bay accounted for over three-quarters of super-prime sales in the city. The emergence of a new strata of properties of over Dh75m ($20 million and over) has emerged that can rightly now be described as super-prime.
The luxury market is certainly in a world of its own with prices increasing at a significantly higher rates, with prices in some communities even doubling, with Jumeira Bay being one such example. A plot for sale at Dh35 million just a year ago, recently sold at a staggering Dh80 million, highlighting a 130 per cent increase in just 12 months.
Ultra-high networth buyers continue to zero in on the city’s most exclusive neighbourhoods, and quality is quickly emerging as a key factor alongside location in purchaser decision making. In recent years, the quality of properties being developed in Dubai has increased significantly, with developers surpassing themselves with projects like the One Palm and Dorchester Residences by Omniyat and, of course, Dubai’s new icon, Atlantis The Royal Residences.
A ‘billionaires’ row’
Predominantly, these developments have been luxury towers developed by known brands. However, it is in the villa market that we have also seen something quite special happen, with the emergence of independent developers delivering world-class properties. These properties have transformed the meaning of luxury villas in Dubai, using world-renowned architects, quality materials and premium finishes to satisfy buyer demand for homes that would sit comfortably in their portfolio of properties in locations such as London, New York and Los Angeles.
Damac may be known for towering skyscrapers and affordable villa communities, but Abbas Sajwani, the son of Damac’s founder Hussain Sajwani, recently brought to market his own Dh400 million portfolio of super-luxury villas. Alpago Properties has also emerged as a major force in the luxury market with a selection of 15,000 square feet to 30,000 square feet masterpieces under development on the Palm Jumeirah, including the upcoming Palm Flower project which is expected to demand prices of Dh10,000 per square foot.
On Jumeira Bay, which is rapidly becoming a billionaire’s row, we also have seen the launch of Sea Mirror, an uber-luxury modern development of just 18 villas on Dubai’s most exclusive island. It’s clear these new developers certainly have a lot to offer the ultra-prime market to satisfy global UHNWI’s demand for quality, helping to redefine the market and set a new benchmark above $20 million as the minimum standard for luxury.
