Dubai-based real estate broker Sam Horani has not found it tough to sell <a href="https://www.thenationalnews.com/lifestyle/home-garden/2024/11/06/luxury-homes-dubai-abu-dhabi-rak/" target="_blank">ultra-expensive properties in the emirate</a> to international buyers. The associate partner at Provident Estate, who says he has helped sell Dh2.8 billion worth of high-end homes in Dubai, including a Dh500 million penthouse, has clients from the US, Austria, Japan, France and Poland, among others. “When people come here [from the US] they are really shocked … it's like the American dream back in the day,” says Mr Horani. “Nowadays, Dubai is more attractive. This is the place to be.” The super-rich investors “want to have the best deal that they can get”, he says. “They have the ability, they have the liquidity to do this kind of transaction and they don't really think about money. They just think about the process and how long it will take.” There is a booming market for <a href="https://www.thenationalnews.com/business/property/2024/10/09/abu-dhabi-most-expensive-home/" target="_blank">Dh100 million-plus </a>($27 million) homes in the UAE, driven by rising demand from <a href="https://www.thenationalnews.com/business/property/2024/05/22/worlds-ultra-rich-to-spend-44bn-to-buy-property-in-dubai/" target="_blank">ultra-rich individuals</a> amid the continued expansion of the Arab world’s second-largest economy. Dubai and Abu Dhabi combined have recorded more than 100 sales of homes valued at over Dh100 million in the past two years, with ultra-high-net-worth individuals (UHNWIs) buying in prime locations including The Palm Jumeirah, Jumeirah Bay Island, Emirates Hills, Business Bay and Saadiyat Island, according to data from property brokers and Abu Dhabi Real Estate Centre. The most expensive home sold in Dubai was a Dh600 million mansion in Palm Jumeirah in 2022, while Abu Dhabi in March recorded its most expensive apartment sale of Dh137 million for a three-bedroom penthouse at Nobu Residences, built by Aldar Properties in Saadiyat Island. “Demand is from global UHNWIs looking to relocate or for second homes,” Prathyusha Gurrapu, head of research and consulting at Cushman and Wakefield Core, says. “Prominent nationalities to buy Dh100 million-plus homes include Indians, British citizens and Russians.” The majority of high-end home transactions<b> </b>took place in 2023, a record year, with more than 50 deals, according to data from Cushman and Wakefield Core and Cavendish Maxwell. From two deals in 2008, Dh100 million home transactions in Dubai surged to 22 in 2022, 51 in 2023 and 34 so far this year. Abu Dhabi has recorded three deals in the Dh100 million-plus category so far this year, all on Saadiyat Island, according to data from Adrec. Along with the apartment at Nobu Residences, which spans 1,430 square metres and features an in-house private pool, wellness retreat and fitness studio, the UAE capital also recorded the sale of its “most expensive villa”, priced at Dh130 million last month. The new deals come as the UAE continues to attract the world’s ultra-wealthy. A record 6,700 <a href="https://www.thenationalnews.com/business/money/2023/12/14/what-does-it-cost-to-live-a-millionaire-life-in-the-uae/" target="_blank">millionaires are expected to call the Emirates their new home</a> by the end of this year, a survey by international investment migration advisory firm Henley and Partners found. The country is poised to attract nearly twice as many <a href="https://www.thenationalnews.com/business/money/2023/09/12/global-wealth-to-rebound-by-5-to-hit-267-trillion-in-2023/" target="_blank">millionaires as its nearest rival, the US</a>, which is forecast to see 3,800 millionaires settle there by the end of 2024. <a href="https://www.thenationalnews.com/business/property/2023/06/13/worlds-super-rich-plan-to-spend-28-million-on-average-on-abu-dhabi-property/" target="_blank">Global high-net-worth individuals </a>are expected to spend $4.4 billion buying <a href="https://www.thenationalnews.com/business/property/2024/04/16/dubai-luxury-property-prices/" target="_blank">Dubai property</a> this year, up 76 per cent compared to last year,<a href="https://www.thenationalnews.com/business/property/2024/04/30/new-terminal-project-to-boost-property-demand-in-dubai-south/" target="_blank"> Knight Frank said in a report earlier this year.</a> Gulf-based HNWIs residents are projected to spend on average $3.1 million for a house in Dubai while the global ultra-rich will allocate $36.5 million on average to property deals. In Abu Dhabi, wealthy people are expected to spend a collective total of $408 million buying property this year, with an average budget of $3.4 million for global HNWIs and $900,000 for Gulf-based wealthy residents, Knight Frank said. Dubai's luxury home market hit record levels in 2023 as sales of $10 million-plus homes nearly doubled to $7.6 billion, performing better than London and New York, Knight Frank said earlier this year. “Dubai’s progressive nature, ease of doing business and high quality of life have incentivised ultra-high-net-worth individuals globally to relocate either partially or fully,” says Siraj Ahmed, partner, strategy and consulting, Cavendish Maxwell. “With this influx comes substantial foreign direct investment, which has led to an increase in demand for ultra-luxury properties.” In 2022, Dubai recorded its most expensive real estate transaction at Dh600 million for a villa on Frond N of Palm Jumeirah, reportedly purchased by Indian billionaire Mukesh Ambani, according to a Bloomberg report. The second-highest transaction was in 2023, for a Dh500 million penthouse in Como Residences, also located in Palm Jumeirah. Nakheel's Como Residences is a 75-storey tower consisting of 81 homes, ranging from two-bedroom to seven-bedroom apartments, including a duplex penthouse. A maximum of two apartments occupy each floor and they are served by access-controlled elevators leading to private lobbies. Residents also have access to the rooftop infinity pool and an observation deck on the 75th floor, providing panoramic views of the Dubai skyline and the Arabian Gulf. The project is set to be completed in the second quarter of 2028. Another major sale was a penthouse in Marsa Al Arab, which sold for Dh420 million in 2023, while an apartment at Bulgari Whitehouse Dubai in Jumeirah Bay Island was bought for Dh410 million last year. Several deals for top-priced properties were recorded at The Palm Jumeirah, highlighting the increased demand for homes on the man-made island off the coast of Dubai. “Dubai offers exceptional value for money,” says Chris Whitehead, managing partner of Dubai Sotheby's International Realty. “Compared to mature markets like Hong Kong, where prices reach $4,000 per square foot, Dubai's prime real estate stands at approximately $850 per square foot, presenting a compelling investment opportunity while maintaining a high quality of life.” The UAE's reputation as one of the safest countries globally, “coupled with its efficient governance, stable economy, and favourable tax environment, makes it a highly desirable location for high-net-worth individuals and families seeking a secure and prosperous lifestyle”, he adds. The UAE’s economy has continued to grow on the back of a boost from its non-oil sector as the Emirates moves forward with its economic diversification strategy. The country's economy is projected to grow 4 per cent this year, after expanding by 3.6 per cent last year, according to the latest report from the International Monetary Fund. It is forecast to grow by 5.1 per cent next year. Dubai recorded combined residential and commercial sales worth Dh138.8 billion in the third quarter, according to a report from property brokerage firm Engel and Volkers Middle East. Residential transactions during the period surged 40.8 per cent year-on-year, contributing Dh115.6 billion, while the commercial market added Dh23.2 billion in sales, up 28 per cent compared to the same period in 2023. The Palm Jumeirah recorded 110 transactions of more than Dh10 million, including three exceeding Dh200 million during the quarter, according to the data. Dubai-based developer Omniyat, which has projects across the city, sold a five-bedroom penthouse for Dh275 million at its development One at Palm Jumeirah in September. Other big-tickets deals include the Sky Palace at Ava, Dorchester Collection for Dh220 million and another property at the same development for Dh112.5 million, according to the company. It also sold a penthouse at The Lana Residences at Business Bay for Dh139 million this year. The prime properties are able to command high rates since they offer personalisation as well as “world-class services and amenities”, Mahdi Amjad, founder and executive chairman at Omniyat, tells <i>The National.</i> Amenities at One at Palm Jumeirah and Ava include an outdoor pool, a private cinema, access to a private beach, a private jetty, 24-hour valet and concierge services, and wellness facilities such as a sauna and spa. The Lana Residences, managed by Dorchester Collection, also features an outdoor pool, a gym with yoga studios, a dining and function room with conference facilities, and a private lounge. Each property features services by the luxury hotel operator. In September, Omniyat also launched The Alba by Dorchester Collection on Palm Jumeirah valued at Dh7 billion, where “select units will be priced over Dh100 million”, Mr Amjad says. Designed by Zaha Hadid Architects, the 63-unit project is expected to be completed in 2028. According to Mr Whitehead, the demand is “very strong for Dh100 million-plus homes provided it's an end-user product”. He adds: “There's a large wealth shift to Dubai right now. That wealth shift is coming to turn Dubai from a holiday home to more of a primary residence.” HNWIs are looking for ready properties “with larger square foot space, with higher amenities and higher-end finish”, he says. Many of them are international buyers, mainly from European countries, especially the UK. However, the supply of Dh100 million homes, is “very, very low,” while demand continues to increase as more wealthy people relocate to the UAE, he adds. “There's not a huge amount of properties. So for that reason, a typical property is normally oversubscribed two or three times.” Waterfront properties at Jumeirah Bay Island and Palm Jumeirah, as well as homes in Emirates Hills and Dubai Hills are in high demand, according to Dubai Sotheby's International Realty. It also takes longer to sell properties valued at Dh100 million and more because clients spend a lot of time looking at the details while involving “their teams, their engineers, because of the value of the property”, Mr Whitehead says. Dubai real estate agency Driven Properties has facilitated the sale of more than 20 homes valued at between Dh100 million and Dh240 million in the last two years, for customers from western Europe and CIS (Commonwealth of Independent States) countries. “When it comes to purchasing luxury homes in Dubai, the overwhelming majority of buyers are looking for places to live rather than purely for investment,” says Abdullah Alajaji, chief executive of Driven Properties. According to Mr Horani, investors are attracted to Dubai because of the sense of safety, the lack of income tax and the good roads and transport infrastructure. Customers are buying property “mostly as a second home, or to be honest, first home as they want to move to Dubai”, he adds. Demand for expensive property is projected to continue to grow “but we have to wait and see, so far it’s been really good and there are already so many people who are going crazy about Dubai”, Mr Horani says. “Every developer, anything they're launching, they are planning a minimum of three to five penthouses, with the prices starting at Dh60 million [and going up to] Dh300 million or Dh400 million,” amid higher demand. Overall, there is bullish sentiment about continued demand for super luxury property. “Given the limited availability of land plots along Dubai’s coastline, waterfront properties are expected to maintain strong demand and achieve relatively higher sale prices,” Mr Ahmed says. The outlook for demand in the luxury property market is incredibly positive, Mr Alajaji adds. “We’ve never seen such a surge in interest as we do now, especially when compared to pre-Covid times. The market has transformed, with more individuals looking to relocate to Dubai.”
