The baseline prices of Dubai’s uber-luxury properties have doubled since the Covid-19 pandemic. But the property rates in the emirate are still lower than some of the most popular cities in the world, said the CEO of Omniyat.
“Uber luxury properties’ base prices have easily doubled over the last 3 years. Even though prices have more than doubled per square foot, Dubai is still cheaper by one-fifth of London, one-third of New York and one-fourth of Singapore’s price. This means we still have a magnificent scope to grow,” Mahdi Amjad told Khaleej Times in an interview on Monday.
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Ultra-luxury units that used to be listed at $5 million per unit during the pandemic period are now listed above $10 million for sale.
“In the next 10 years, we should not be surprised to see Dubai property price matching any other capital city in the world because the city is not short of anything when compared to major capital cities,” he said.
Prices of luxury and ultra-luxury properties recorded an unprecedented demand and price surge during 2022-23 as investors’ and residents’ confidence improved substantially in the local real estate market.
The ultra-luxury developer’s portfolio doubled from $5 billion in 2021 to $10 billion in 2023. It is expected to double to $15 billion by 2025. Its portfolio is concentrated in Palm Jumeirah and Business Bay.
The company will deliver 38 units this year in Business Bay and all of them would be priced at $10 million-plus.
West European buyers growing
Amjad added that previously a significant customer base was from the region or may be within a 2-3 hour radius of travel.
“What is really surprising for us is significant growth in international buyers, particularly from West Europe. From 2020 to 2023, the largest customer base was Western Europe. Now we are seeing more and more customers from Asia also,” he said.
Dubai to set benchmarks
Omniyat chairman said developers used to benchmark Dubai against New York, London and Hong Kong when it comes to uber luxury units. “In the coming years, we will create the benchmark of uber luxury from this beautiful city of Dubai. 2023 was not a normal year and I don’t think we’ll see a similar growth level but we have a sustainable position of uber luxury. I think Dubai will continue to lead the uber-luxury segment of the market at the global scale in 2024,” he said.
Master planner
The company is planning to raise funds and is looking at diverse avenues, including bonds. “We are looking at all the options to raise funds, including bonds.”
In 2024-25, the company will look at the larger projects.
“We went from a building to cluster and now we are looking at how we can take that experience from a cluster to a mini masterplan. We believe we can create by far greater elevation of experience if we apply the same principles of design. We are studying and evaluating opportunities in Dubai that will allow us to do it in the years to come,” he said.