The luxury real estate market in Dubai has witnessed a significant shift. What was once considered a city of flashy novelty homes has rapidly become one of the busiest - and highest - transacting luxury markets in the world.
In Q1-24, the total value of homes sold at above $10 million saw 6 per cent year-on-year growth, alongside a 19 per cent increase in sales volume. One of the most notable trends is a rising segment of private listings for super-prime homes. This is primarily driven by the desire for ultra-high-net-worth individuals (UHNWIs) to have a greater sense of discretion and exclusivity with their properties.
Consequently, it has redefined how Dubai’s most expensive homes are marketed and sold.
Phenomenon of private listings
Unlike traditional listings, which are publicly advertised and accessible to a wide audience, private listings offer a more confidential approach. This method appeals both to discerning buyers who seek to maintain privacy and avoid public scrutiny, and to sellers who want to ensure that only the most qualified buyers are allowed to view their properties.
As a result, private listings have emerged as a preferred avenue for accessing highly coveted properties that are often not readily available on the open market.
Their allure lies in their ability to offer a tailored and discreet transaction process. For buyers, this means access to a curated selection of properties that meet their exacting standards, while sellers benefit from a more controlled marketing strategy. This approach not only preserves the privacy of both parties but enhances the perceived value of the property by limiting its exposure.
A rarity of super-prime homes
Super-prime homes in Dubai represent the pinnacle of luxury living, typically characterized by exceptional architecture, singular design specs and bespoke amenities. Properties at that level are exceedingly rare and present some unique challenges for both buyers and sellers.
This scarcity also adds to their distinctive allure, attracting a select group of elite clientele from every corner of the globe.
Given that Dubai is a growing hub for high-net-worth individuals, why are these properties so rare? There are several factors contributing to that, including limited availability of prime locations, high construction costs, and the exclusive nature of the amenities and designs.
In most cases, homes that are classed as ‘super-prime’ are fully custom-built on exclusive plots of land. Their interiors are fully bespoke and may feature design elements such as custom lighting and flooring. State-of-the-art technology is also being increasingly integrated into these properties – built-in sound systems, smart home controls, climate regulators and energy efficiency systems are very common.
The price tag associated with that design makes it a significant undertaking, with a construction timeline that can span years. When complete, they may not go up for sale immediately – a part of their prestige lies in the ability of a homeowner to show them off to guests, or to use them as holiday homes for a few months of the year.
When they do come to market, sellers have the challenge of finding a buyer who can appreciate the unique value of their home. For buyers, the challenge lies in finding a home that ticks the right boxes. For example, a mansion with specially installed stone flooring may not be to everyone’s tastes, regardless of how much work went into it.
This is where the services of an expert real estate professional proves to be invaluable.
Navigating the complexities
Dubai’s luxury real estate market has many layers to it and requires a deep understanding of the various factors that influence property values and transaction processes. With a high number of international expats calling the city home, economic and geopolitical matters overseas can have an impact on local buying and selling decisions.
In recent years, Dubai has been tightening regulations for the marketing and sales of real estate to create a more transparent environment for everyone. This has helped immensely in rooting out unscrupulous property brokers and in giving the most qualified brokers greater visibility in the market.
With the rise of private listings, both sellers and buyers will be looking to work with those brokerages that have a proven track record, an excellent portfolio of listings, and place a high value on discretion. Working with a brokerage with an impeccable reputation in the market, they can be assured of getting the right guidance in finding their perfect property.
