REVEALED: Dubai's most expensive property sales

Tuesday, 22 January 2013 12:04 PM

The sale of a 14,349 sqft apartment in Dubai Marina’s Le Reve Tower for AED34.7m (US$9.4m) was the most expensive real estate transaction in the emirate last year, according to data from Reidin.com.

The apartment was one of four properties in the luxury apartment block to rank among the emirate’s most expensive real estate sales in 2012, the real estate intelligence provider said.

REVEALED: Dubai’s most expensive properties

“Le Reve is attractive because of its location. The apartments sold were all penthouses so the premium they command is greater,” said Saurabh Sharma, research and data manager at Reidin.com.

“Property prices in 2011 were below the sale value so people took the opportunity in 2012 to purchase fundamentally good properties and they were willing to shell out more for those in hot areas such those with good infrastructure, connectivity and near central business districts,” he added.

Apartments in Damac’s Ocean Heights Tower and Bayside Residence also made the list, which excludes residential sales in Burj Khalifa as it is considered a multi-use building. Notably, only two villas, both located in Kempinski Palm Jumeirah Residences, featured in the list.

The smallest apartment to make the cut was a 6,298 sqft property in Le Reve while the price per sq ft varied between AED1,712 (US$466) and AED3,255.

Dubai was one of the hardest hit by the economic downturn, which saw property prices slump by over 60 percent following a six-year property boom. Real estate prices started to show signs of recovery last year as the emirate benefited from its safe haven status amid the Arab Spring and its economy expanded.

The emirate has recently started to announce big projects and revive some plans that had been shelved in the wake of the property collapse. House prices have also started rise with average property prices increasing 19 percent last year, according to property consultant Jones Lang LaSalle.

REVEALED: Dubai’s most expensive properties

(All images for illustrative purposes)

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Posted by: Dude Tuesday, 22 January 2013 4:51 PM[UAE] - India

Nothing meaningful to report in Dubai, so let's just inform people of property prices....lol

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Posted by: Fricheur Tuesday, 22 January 2013 1:00 PM[UAE] - UAE

WAW and who said real estate is expensive in Dubai !!! the most expensive transaction did not even reach $10 M !! for a 1,000+sqm in the most luxurious building in Dubai...
it is really a bargain and honestly cheap compared to any city in Europe, or Beirut or Honk Kong, Singapore, Tokyo .....

lets invest in Dubai again....

Posted by: TelcoguyLuis Thursday, 24 January 2013 2:51 PM[UAE] - Uae

@fricheur leaving aside your rant (think how much profit can be made in a economy the size of UAE if you are in the "billions of dollars" scale) and the fact that companies can manage and diversify risk in ways not accessible to the vast majority of individuals, I would like you to explain what is the basis for that "decent resale value" of a villa in the palm in 25 years, when builders are talking about lifes of 15 -20 (apartaments) and 20-25 (villas)

Seriously, the land? I think you do not own the land, just the building... I know that is the case for apartments, maybe villas work different. Can you justify that resale value? Have I misunderstood something here?

Are you in the RE business?

Posted by: Fricheur Wednesday, 23 January 2013 1:04 PM[UAE] - UAE

@Telcoguy , u might have a point of view that applies to employees with risky jobs, but u are completely ignored people who owns companies and businesses for hundreds of millions, who can not leave and wont leave easily as long as the business is profitable in dubai. they are already taking the risk of dubai, and dealing with banks and liabilities. some people have invested a lot in that country to consider leaving it someday....
a villa on the palm will always be a villa on the palm even in 25 years and will have a decent resale value as long as it is well maintained and bought at a realistic price.

Posted by: Telcoguy Wednesday, 23 January 2013 11:08 AM[UAE] - UAE

@Fricheur, or you could, you know, rent and avoid the risks and the hassle of a very immature legal system, a bubble-prone market, and less than stellar banks

Because:
-RE prices can go down here and anywhere, as proven recently (again, not the first time, but the first with low inflation so no place to hide)
-you really do not know what you are buying neither in term of assets nor liabilities, as many owners have discovered
-banks may decide to cancel/freeze your accounts with no notice at the worst moment (losing your job)
-life of the assets here is rated 20-25 years, so what would be the resale value when you leave the country in 15-20 years at best?

For people who bought at very low prices it has probably been worth, for others they are throwing money into a negative equity deal. I think anyone thinking of buying should be very careful and perform some proper due diligence

Posted by: Fricheur Tuesday, 22 January 2013 6:32 PM[UAE] - United Arab Emirates

@Grant, you are right concerning the limited and restricted space in other cities.
But what i meant is that IF YOU LIVE in Dubai , you can buy a decent property at a reasonable price. or even a luxurious villa on the palms at an acceptable price compared to other destinations..

I am not pushing anyone to invest blindly....

Posted by: Grant Holt Tuesday, 22 January 2013 4:23 PM[UAE] - UAE

All those other place have restricted space avaliable and planning issues to overcome. Dubai is a desert with no such issues, so why a premium, cause its not for the build quality?

Look forward to hearing what you invested in in due course.

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Posted by: Ronald Tuesday, 22 January 2013 1:00 PM[UAE] - UK

The term penthouse is rather loosely used in Dubai real estate spin, because it is supposed to denote the top floor of a tower, not all the flats, however grand and expensive. Dubai property marketeers have some of the most colourful and fictitious language in the world, Better Homes and all.

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Posted by: Anil Tuesday, 22 January 2013 1:00 PM[UAE] - UAE

There is a subtle and key difference between the words 'expensive' and 'high-value'. 'High value' means that even though you have paid a high amount of money for something, you have got an equivalent or higher value for your money. 'Expensive' means you have paid too much for something that is not worth the price. You have allowed emotions to play you.

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