Real-estate firms in Dubai are scrambling to attract more buyers from Europe, Asia and the Americas
Dubai’s Ultra-Luxury Real Estate Boom: Mansions, Penthouses, and Millionaire Magnetism 🌍🏡
Dubai is unveiling a fresh wave of extravagant mansions and penthouses, complete with private cinemas, lavish spas, and personal elevators, as developers aim to attract millionaires from across the globe.
These opulent residences are hitting the market with prices ranging from $60 million to over $120 million, drawing affluent buyers from Europe, Asia, and the Americas. The features are becoming even more lavish, surpassing the already glittering standards of an emirate famous for its luxury.
One developer transported a massive glass wall across continents to secure a perfect sea view for a buyer. Another incorporated a private lobby and elevator into a penthouse so expansive it spans two towers. Elsewhere, a custom-built swimming pool features a movable floor that seamlessly blends with garden tiles during events.
While Dubai’s thriving property market shows signs of moderation following a surge since 2021, this hasn’t deterred developers from constructing palatial homes along the city’s most exclusive beachfronts.
“The high-end segment is the most profitable,” said Mark Phoenix, CEO of Sankari Properties, which is behind a $1 billion ultra-luxury tower. “When executed correctly, developers can achieve premium prices.”
Dubai’s property market defies the global trend, where luxury real estate prices are slowing or declining in many cities. In 2023 alone, 435 homes priced over $10 million were sold in Dubai, setting a new record and surpassing major markets like New York and Hong Kong, according to Knight Frank. The firm projects another 5% price increase this year, following an impressive 67% rise since 2021.
For wealthy international buyers seeking second or third homes, Dubai offers more space for the same investment. Mahdi Amjad, founder of Omniyat, an ultra-luxury property developer, notes that prices per square foot in Dubai are roughly one-third of New York’s and one-fifth of London’s.
Global Benchmark for Luxury 🌟
“We benchmark our properties against those in New York, and for similar—or even lower—price tags, you get significantly more space, experiences, and amenities,” said Amjad, who plans to add 100 new ultra-luxury homes this year.
Developers in Dubai often go to extraordinary lengths to compete on the global stage. During a site visit, Bloomberg News observed a giant retractable glass dome being constructed over a pool and spa, allowing owners to sunbathe when retracted. In another project, winding pools connect outdoor bars with garden spas, enhancing the luxury experience.
Dubai’s man-made islands remain prime real estate. On the sea-horse-shaped Billionaire Island, mansions boast private beaches and rotating car platforms that align vehicles for effortless exits.
Wealth advisory firm Henley & Partners predicts that 6,700 millionaires will relocate to the UAE in 2024, more than any other country. However, catering to the tastes of the ultra-wealthy comes with significant costs and complexities.
“Adding bespoke features significantly increases upfront design costs, which can intimidate some developers,” Phoenix admitted.
Wissam Damaa, founder of Palace Group, faced a unique challenge when a client requested an entire living room wall made from a single pane of glass measuring 17 meters by 4 meters—roughly the size of a swimming pool. Finding and installing such a piece seemed nearly impossible, especially with the added demand for it to disappear at the push of a button, revealing an unobstructed sea view.
After 45 days of deliberation, a leading German glass manufacturer agreed to the project, contingent on a Swiss company engineering the mechanical system. This involved constructing an underground space to house the glass when lowered. Transporting the pane required special permissions due to its size, but the client ultimately received the bespoke feature they desired.
“Most of our clients own multiple properties worldwide and have very specific preferences,” said Damaa, who is overseeing 15 luxury mansions and a 70-apartment building valued at 16 billion dirhams ($4.4 billion).
Despite the luxury boom, experts note that the market’s feverish pace is cooling. Price increases are slowing, and developers face challenges securing prime plots.
Honey Deylami, Executive Partner at Dubai Sotheby’s International Realty, observed that wealthy buyers are resisting steep price hikes, though demand still exceeds supply.
“There’s a shortage of ultra-high-end properties ready for immediate occupancy,” Deylami explained. “While there’s plenty in the pipeline, it’ll take three to four years before new developments are market-ready.”
