Dubai real estate sector is booming. The values of luxury properties in Dubai continue to strengthen, fuelled by the deluge of ultra-high-net-worth individuals such as Mukesh Ambani, who are homing in on the emirate’s prime zones in search of premium homes. In the third quarter alone, the values have increased by 29 per cent, which seems to be drawn from the booming real estate market of 2021, which saw roughly around $35 billion in property transactions and proved it to be the highest grossing year since the 2008 financial crunch.
Dubai’s prime districts in higher demand
With no bubble risk yet in report, Dubai prime areas are in higher demand with property prices up by 90%. Dubai real estate market has heated up as the demand for luxury and ultra-luxury properties has increased multi-fold over the past 12 months and so are the prices. The prices of luxury properties for sale in Dubai across several prime locations have spiked at a record high rate, with values up by around 90 per cent. A report of Knight Frank, a property consulting firm in Dubai, confirmed the spike of 88.8 per cent for luxury properties in Dubai.
“Prime residential values in Dubai continue to strengthen, growing by 29 per cent in Q3 alone, fuelled by a persistent deluge of UHNWI individuals who are zeroing in on Dubai’s premier districts, in search of second homes. This trend marks a significant departure to the emirate’s two previous market cycles, where the overriding flavour of buyers was linked to buy-to-let or buy-to-flip purchases,” Faisal Durrani, Knight Frank partner and head of Middle East research said.
Moreover, the city has become a top investment choice for high-net-worth individuals and celebrities alike including David Beckham and Shah Rukh Khan, who have purchased prime properties for sale in Dubai. And now Mukesh Ambani, the second richest man in India has expanded his real estate portfolio by investing in a beachfront ultra-luxury villa located on Palm Jumeirah.
Mukesh Ambani bought the most expensive villa in Dubai
Mukesh Ambani, the chairman and managing director of Reliance Industries Ltd. India, has recently bought the most expensive villa in Dubai. The villa was listed at a record-breaking price of $163 million. As per the news, Ambani bought the prime villa in Palm Jumeirah last week from the family of a business tycoon Mohammed Alshaya. Alshaya’s conglomerate has local franchisees for Starbucks, H&M, and Victoria’s Secret.
Apparently, he was also named as a mystery buyer of an $80 million villa sold in August in the city. It was a 10 bedroom waterfront villa – known to be Dubai’s biggest property. The $80 million villa is just a short walk away from his recently purchased villa, which is by far the most expensive villa in Dubai. The luxury waterfront villa has been bought for Anant – Ambani’s youngest son.
The Ambanis own the 27-storeyed Antilla in south Mumbai, India, which is their family home. However, the industrialist and family members have been acquiring prime properties across the globe, including the US and the UK. According to a news source, Reliance paid $79 million last year to acquire the legendary country club Stoke Park in the United Kingdom.
Amenities and Features of beachfront villa
Located on the northern region of the island, Mukesh Ambani’s Dubai villa boasts exquisite state-of-the-art amenities and opulent facilities for the residents. It features:
- A 2-story villa spread over 3,000 sq. ft.
- 11 bedrooms
- 7 spa facilities
- A 70 metres long private beach
- Indoor and outdoor swimming pools
- A fully-equipped bar
- A modern and open-plan kitchen with ample dining space
- Interiors finished with contemporary masterpieces
- Italian marble is used to beautify the lavish mansion
Reliance firm would soon start renovating the villa.
Price surge in prime areas of Dubai
According to property agents in Dubai, in popular neighbourhoods of Dubai including Palm Jumeirah, Emirates Hills and Jumeirah Bay, the prices of properties for sale have increased more than 100 per cent. It is because wealthy property buyers have queued up to secure the best properties across the prime districts of Dubai. A few areas are already in higher demand for ultra-luxury properties such as Palm Jumeirah and Dubai’s most expensive waterfront villa sold for $82 million is also located in Palm Jumeirah.
In September, the value of real estate transactions exceeded $325 million, with 386 sales transactions – 341 of which were for apartments and villas located at prime gated communities in Dubai.
Villas remain the popular investment choice in Dubai
A large number of real estate brokers in Dubai reported a robust increase in activity in terms of investing in the Dubai real estate sector. Mukesh Ambani and family is fond of buying expensive things and this one really boasts their collection off! Since global investors have flocked to Dubai and invested in properties here as a hedge against inflation and economic uncertainties, the market has started to boom. A majority of high-net-worth individuals have been showing interest in luxury townhouses and villas for sale in Dubai as their second homes.
“Through to the end of 2025, just eight new villas are expected to be built in Dubai’s prime residential areas, hinting strongly at continued out performance of villas at the very top of the market as there is nothing to suggest an easing of the luxury home drought any time soon,” Faisal Durrani, partner and head of Middle East research at Knight Frank, said in June.
It seems like not just the market’s statistics but the shortage of prime properties in the city has been driving up the prices of properties. Besides investing in prime areas, people have also been looking for reasonable properties in neighbourhoods like Dubai Silicon Oasis, Business Bay, DAMAC Hills 2, Dubailand, and Jumeirah Village Circle (CVC).
Register your interest now!
If you have been looking for a luxury villa or eyeing a premium apartment in Dubai, you must contact the team HFRE at +971 4876 2473 to discuss your investment plan. You can also write us your query at info@hfre.ae, and we will help you make the right investment decision and also shortlist the best investment options in the city, according to your budget.
