Dubai’s super luxury market is expected to double in the last quarter of this year, according to Metropolitan Premium Properties (MPP) – a full-service real estate agency and the Metropolitan Group’s flagship property company.
High net worth individuals (HNWI), entrepreneurs, institutional investors and family property funds are driving demand for villas north of AED20 million resulting in a shortage of available units for both end-users and investors in the market. Over 75 percent of the buyers are relocating permanently to Dubai as they see the city as a safe and stable place.
Dubai continues to be a magnet for the super wealthy with the city expected to attract over 4,000 HNWIs this year alone – an increase of over 208 percent vs. 2019 according to a report that tracks private wealth and investment migration trends worldwide. The war in Europe and Dubai’s position as a safe and secure destination and the government’s business-friendly regulations has contributed to HNWIs and investors relocating or snapping up secondary properties at record levels.
Over the past seven months, MPP has sold many ultra-luxury properties including Sea Mirror, Jumeirah Bay Island (AED154 million), Six Senses Residences, Palm Jumeirah (AED82 million), The Royal Atlantis Resort & Residences, Palm Jumeirah (AED62.9 million), BV Residences, Island 2 (AED50 million), Royal Atlantis Resort & Residences, Palm Jumeirah (AED43 million), Elysian Mansions, Tilala Al Gaf (AED41 million), Address Jumeirah Resort & SPA, JBR (AED40 million) and a full floor in the Le Pont Building, Port de La Mer (AED42 million).
To cater to this explosive demand for ultra-luxury properties, Metropolitan Premium Properties launched a new division, Penthouse.ae, that will exclusively deal with properties upward of AED15 million.
Penthouse.ae, while currently only listing properties in Dubai, will also expand to cover properties in Abu Dhabi and will have a dedicated team of 25 luxury property experts by the end of next year. The new division plans to offer clients a complete 360-service from helping with visas, opening bank accounts, setting up companies, property management, legal services and more.
Petri Mannila, Sales Director of Penthouse.ae, said: “A few years ago, there would only be a handful of properties above AED100 million. Last year, the most expensive villa sold was in the AED120 million range and just last month a villa was sold for AED285 million and we have just listed an uber-luxury villa on the Palm Jumeirah for AED800 million.”
“We are seeing very strong demand for uber-luxury properties from investors primarily from Russia, CIS and Europe mainly from Italy, Germany, Poland and UK and we’re also seeing greater interest from the US,” said Petri.
“Developers are reacting to this demand and adding more luxury and unique features to their developments to cater to their high-profile clientele. Since the start of this year, the number of super-luxury properties from AED15 million and above has quadrupled and this segment will continue to grow and we expect demand to remain strong in the last quarter of this year and beyond,” he added.
Properties on Palm Jumeirah and other beachfront locations including Marsa Al Arab, Jumeirah Bay, Pearl Jumeirah, Emirates Hills and Golf communities are seeing the highest demand with prices on the Palm recording an increase of over 50 percent compared to other parts of the city.
In addition to MPP in Dubai the Group also includes Metropolitan Capital Real Estate in Abu Dhabi, Luxury Immobilien GmbH, a real estate agency in Vienna and Metropolitan Consulting FZE, providing personal and business legal services in the UAE.
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