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Flat on Palm Jumeirah breaks sales price record as Dubai property sector continues its growth journey

Dubai’s luxury property market has witnessed substantial double-digit growth in the first half of this year, with a positive outlook forecasted for the next 3-5 years

Dubai’s luxury property sector continues to witness unprecedented demand as a new three-bedroom duplex apartment has been sold for Dh12,387 per square foot on the Palm Jumeirah, thus reportedly becoming the most expensive property to be sold per square foot on the man-made island and the second most expensive in the emirate.

“The previous record was held by a three-bedroom apartment at Bulgari Resorts and Residences, which was sold for Dh13,543 per square foot in February 2023 and with a total price tag of Dh42.9 million,” commented a Khaleej Times report on the incident.

The three-bedroom duplex apartment at the Royal Atlantis has been sold for Dh44 million by Olga Mannila, sales manager at Penthouse.ae, a subsidiary of property sector giant Metropolitan.

The apartment, equipped with a private swimming pool and an array of lavish amenities, has been acquired by a first-time Russian investor.

Petri Mannila, head of luxury at Penthouse.ae, told the media that global investors continued to exhibit a keen interest in Dubai’s exclusive real estate offerings.

“This landmark deal further underscores the continued interest in branded residences, including iconic names like SLS Residences, Armani, Six Seasons and the Royal Atlantis. High-net-worth individuals, entrepreneurs, institutional investors, and family property funds are driving demand for luxury properties north of Dh20 million, resulting in a shortage of available units for both end-users and investors in the market,” the official remarked, while adding, “With supply constrained and prices maintaining an upward trajectory, the current window of investment opportunity is exceedingly promising. Dubai’s luxury property market has witnessed substantial double-digit growth in the first half of this year, with a positive outlook forecasted for the next 3-5 years.”

Mannila, who oversaw the record-breaking deal, also said that The Royal Atlantis is witnessing an extraordinary increase in prices, surpassing 150% since its launch.

Meanwhile, an AI-powered analysis on property markets in major global cities has predicted a close to 15% growth in Dubai’s real estate market in 2024, while a persistent downturn would continue to haunt the London counterpart in the coming days.

“Fuelled by resilient demand, a buoyant economy, and robust foreign investor interest, the [Gulf] city’s real estate landscape is projected to experience a remarkable upswing [in the coming year],” the study by Realiste, an AI-based prop-tech specializing in real estate investment solutions, said.

Talking about the London property market, the report noted the adverse effects of factors like skyrocketing fuel and energy costs, high inflation, and tax hikes taking their full toll.

“These economic factors have significantly reduced households’ discretionary income, making it more difficult for them to invest in real estate,” the study revealed further.

Even the International Monetary Fund (IMF) has downgraded its 2023 economic growth forecast for the United Kingdom to a modest 0.4% from its April estimate of 0.7%.

“Growth in the United Kingdom is projected to decline from 4.1% in 2022 to 0.4% in 2023, then to rise to 1.0% in 2024,” IMF said in its latest review report.

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