Dubai’s high-end property sector has reached a new peak with an ultra-luxury villa set to rent for AED 8.5 million over two years. The record-breaking deal for a 24,000 sq ft villa in Umm Al Sheif once again underscores the city’s appeal to wealthy investors, and demonstrates the growing demand for ready-to-move-in luxury homes. The UAE is set to attract an additional 6,700 millionaires by the end of 2024, and Dubai’s market has a limited supply of ultra-luxury villas.
According to Dubai Interact, a daily real estate transaction report in Dubai, of the 61,558 villas scheduled for completion over the next three years, only 379 are priced at AED 60 million or more, 833 are priced in the AED 30-60 million range, and 2,854 are priced between AED 15-30 million. The demand for luxury properties is also evident in the resale market, especially apartments priced above AED 10 million. Between 2023 and 2024, resale transactions in this sector increased by more than 25%, from AED 9.8 billion to AED 12.4 billion.
It is worth noting that this increase includes only resale transactions, and excludes off-plan sales, indicating a strong and ongoing demand for luxury properties in Dubai. In recent years, the market for properties valued at over AED 10 million, which includes both first-hand sales from developers and resale transactions, has witnessed significant growth.
Data from Dubai Interact on daily sales transactions taking place in the Dubai real estate market reveals that ultra-luxury apartments and villas achieved record sales of AED 86.1 billion in 2023, a massive jump of 1,245% from AED 6.4 billion in 2016.