Dubai: Prices Of Villas, Apartments Soar By Up To 100% As Ultra-Rich Flock To The Palm


(MENAFN- Khaleej Times)

Published: Fri 3 Feb 2023, 11:15 AM

Last updated: Fri 3 Feb 2023, 12:47 PM

Ever since the opening of the atlantis, the royal, property prices on the Palm have risen, with some investors gaining over 100 per cent of their unit's original purchase price, according to industry
experts.

Atlantis, The Royal was inaugurated last month in a spectacular ceremony that grabbed eyeballs all across the world. singer
beyoncé took to the stage along with her 11-year-old daughter blu ivy, in her first performance since 2018. The property features hotel rooms as well as residences.“We have seen a dramatic increase in buying interest is due to the coming handover period,” said Lewis Allsopp, CEO of property company Allsopp & Allsopp.

“Some investors, depending on their location, have doubled their investment. This is due to a couple of factors; obviously, the market
being in great condition and multiple luxury launches around giving new benchmarks.”

Last year, the Palm saw renewed interest from investors all around the world.

Arash Jalili, founder and CEO of Unique Properties, said there was a reason for it.“The Palm Jumeirah was cited as Dubai's most preferred location among real estate investors last year with villa prices in the area rising by nearly 50 per cent,” he said.“This growth came on the heels of increased demand for beachfront homes paired with a shortage of new waterfront projects in completed communities.”

According to Jalili, the prices are at its highest ever now.“Dating back to the height of the Covid-19 pandemic, villa prices have risen by almost 100 per cent and this is around 35 per cent higher than the 2017 peak,” he said.“We just facilitated a transaction for one of the most exclusive beachfront homes on the Palm Jumeirah worth Dh130 million, which was purchased by one of our international clients.”

The new jewel of the Palm

There has also been a steady increase in interest in property inside the Atlantis, the Royal itself, which has 231 units.

A luxury four-bedroom apartment in the newly opened Atlantis, The Royal Residence has been listed at an eye-popping Dh60 million, on search website Property Finder.

The waterfront apartment with a 90m sky-high infinity pool and floor-to-ceiling windows has balconies overlooking the ocean and the Palm.

“Investors in the UAE have an exciting new address to look out for,” said Scott Bond, UAE country manager at Property Finder.“We are not surprised to see more investors seeking Palm Jumeirah as one of their preferred communities. According to our data, Palm Jumeirah was one of the most frequently searched neighbourhoods for villas and apartments in 2022.”

Other properties on sale in the ultra-luxurious hotel include two- and three-bedroom properties that range from Dh25 million to Dh38 million.

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Rising prices

According to the Carl Allsopp, COO of Allsopp & Allsopp, properties usually have renewed interest during handover.“However, the case of Atlantis the Royal Residence is a little different,” he said.“With the mega opening ceremony, the eyes of the entire world were on the property.”

With more people from around the world investing in Dubai, property experts say that prices in the city will rise through the year.

“Dubai registered a double-digit price surge of 11.05 per cent in 2022 with its residential segment witnessing 86,849 sales transactions, a new all-time high that displaced the previous record that was set in 2009,” said Madhav Dhar, co-founder and COO of ZāZEN Properties.“Dubai's real estate sector will also continue being strengthened by the UAE's growing expatriate population, especially as Europeans make their way into the country in search of permanence.”

Jalili agrees.“A recent survey cites that amongst the region's affluent, the UAE only trails the UK and it is the second most likely target for a home purchase this year,” he said.“With over 70,000 millionaires living in the city, Dubai's high-net-worth individual (HNWI) population is poised to grow further; the emirate's luxury property segment will be the biggest beneficiary from this incoming influx,” said Arash Jalili.

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Khaleej Times

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