Dubai: More evidence of the global super-rich making Dubai their home are surfacing, with a set of recent rental contracts each being signed at well upwards of Dh1 million. And the sky being the upper limit, so to speak.
On the Palm – where the highest residential transaction has hit Dh600 million – a super-luxury home bagged a six-month lease for Dh4 million. “It has now become routine for properties (on the Palm) to be listed at upwards of Dh3.65 million,” said Liam Ure, Senior Private Client Advisor at LuxuryProperty.com. “And get rented at that price point.
“Palm Jumeirah has been struggling with a shortage of available homes on the market. A fact that has led to significant price increases over the past year. A custom-designed home in a community like Palm or Emirates Hills can’t be priced according to market value. Such a property sits in its own price bracket.” The deal was closed by Ure and Ellie Chambers, also a Private Client Advisor.
As Dubai has attracted a greater diversity of property buyers, it has led to a shift in the aesthetic of the homes being built. And those buyers are more particular about quality than ever before, sourcing only the best materials and branded elements from across the world
District 1 and a Top 3 rent deal
If one moves outside of the Palm, then Jumeirah Islands and District 1 are where Dh1 million plus rental contracts have been signed. District 1, which has seen completion of more villas and mansions in recent months, recorded a rental agreement for Dh1.8 million on a 6-bedroom 15,500 square feet built-up area home.
“The deal, done in October, is among the Top 3 rentals in the area to date,” said Alina Adamco, Head of Secondary Market Sales at Metropolitan Premium Properties, which was the agency behind the transaction. (Oybek Shamsiddinov was the owner’s agent and Galyna Galytska acted as tenant agent.)
The geopolitical climate is driving European business owners and families to also consider Dubai as a key business and lifestyle hub.
“Investors - primarily from Europe and the CIS - are snapping up ready properties as soon as they are put on the market and in some cases even before they are listed. This rise in demand has resulted in the secondary market heating up with prices surging over 10 per cent in the last quarter.”
The owner of the property is an Asian, while the tenant is a European family who has just moved to Dubai.
Jumeirah Islands strikes its biggest lease
On Jumeirah Islands, the lease was signed for Dh1.2 million, making it the biggest rental contract to date there. "The vast majority of the villas in Jumeirah Islands have also undergone extensive upgrades and renovations - and even plot extensions in some cases," said Kyle Giusti of LuxuryProperty.com, who closed the deal. “As a result, they now represent a more premium offering and can command prices to match, whether for sales or rentals.
“Any community by the coast or has a waterfront element is hugely popular in terms of demand,” says Giusti. “And Jumeirah Islands has really stepped up its game by modernising itself. It’s currently one of the best prime residential neighbourhoods in terms of the value if offers for its price point.”
Palm Jumeirah is at the top of the list, dominating the market in terms of demand despite being 16 years old and surrounded by newer communities like Emaar Beachfront and Bluewaters