“Palm Jumeirah has been struggling for years with a shortage of available homes on the market. A fact that has led to significant price increases in the past year. A custom designed home in a community like Palm or Emirates Hills cannot be priced by market value. Such a building is in its own price range.”
As Dubai has attracted a greater diversity of property buyers, this has led to a shift in the aesthetics of the homes being built. And those buyers are pickier than ever before, sourcing only the best materials and brand elements from around the world
– Liam Ure of LuxuryProperty.com
If someone moves outside the Palm, the Jumeirah Islands and District 1 are where Dh1 million plus leases have been signed. District 1, where more villas and townhouses have been completed in recent months, has signed a lease for Dh1.8 million for a 6-bedroom house with a built-up area of 15,500 square meters.
“The deal, which closed in October, ranks among the top 3 rental properties in the area to date,” said Alina Adamco, head of secondary market sales at Metropolitan Premium Properties, the agency behind the transaction. (Oybek Shamsiddinov was the owner’s broker and Galyna Galytska acted as tenant’s broker.)
“The geopolitical climate is pushing European entrepreneurs and families to consider Dubai as an important business and lifestyle center as well,” said Alina. “Investors – mainly from Europe and the CIS – snatch up ready-made properties as soon as they hit the market and in some cases even before they go public. This surge in demand has caused the secondary market to warm up with prices up more than 10 percent in the last quarter.”
The owner of the property is Asian while the tenant is a European family who just moved to Dubai.
In the Jumeirah Islands, the lease was signed for Dh1.2 million, making it the largest lease to date. “The vast majority of villas on the Jumeirah Islands have also undergone extensive upgrades and renovations – and in some cases even plot extensions,” said Kyle Giusti of LuxuryProperty.com, who closed the deal. “As a result, they now represent a more premium offering and can negotiate prices to match, both for sale and rental.
“Any community on the coast or with a waterfront element is extremely popular in terms of demand,” says Giusti. “And Jumeirah Islands has really stepped up its game by modernizing itself. It is currently one of the best prime residential areas in terms of value as offers for its price.