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Talk about selling at a high – the Jumeira Bay land that just sold for Dh125 million came to Dh5,115 per square foot. And that is a staggering 242% increase over the previous asking price for this prized undeveloped property at one of Dubai’s most sought-after waterfront locales.
In truth, plots, and homes on Jumeira Bay have been bringing developers or owners, as the case may be, some astronomical profits. An eye-popping Dh10,155 a square foot was paid for a two-bedroom apartment at the island’s Bulgari Residences earlier this month, according to the web DXBInteract.com.
What is the seller’s gain in this transaction? According to the portal, a blatant 147%.
It doesn’t end there, also this month, Jumeira Bay oversaw two other property transactions valued at Dh11,000 plus per square foot. “Sellers who waited patiently to close their deals on their plots/properties on Jumeira Bay are clearly getting what they wanted,” said a property consultant. “No other location in Dubai is fetching these kinds of returns for now. Even other prime waterfront destinations.
“Jumeira Bay kept the number of properties and plots steady right through – that’s why buyers are willing to pay these sorts of premiums to buy a home. Or build one themselves.”
The month of April has undoubtedly been successful for Jumeira Bay, where in February a penthouse at the Bulgari Lighthouse sold for Dh410 million.
Palm’s ‘affordable’
Palm now costs an average of Dh2,600 per square foot, while the selling price hovers at Dh3.7 million, according to data from DXBInteract.com. The price per square foot has increased by 16% since last year.
The City Walk, where the average price per square foot is going above Dh2,300, up 28%, and the selling price is at a tidy Dh3 million, is the other place that is regularly performing well. In fact, based on sales volume, City Walk is Dubai’s best-performing neighborhood.
“What’s clear from the first four months’ data is that there is no drop in demand for Dubai’s priciest spots,” the consultant said.
Inland ‘island’
Tilal Al Ghaf from Majid Al Futtaim is another upmarket location in Dubai generating sizable big-ticket deals. According to data from DXBInteract, ready plots ranging in size from 7,220 square feet to 15,581 square feet were purchased closer to the Eid holidays for prices ranging from Dh11.3 million to Dh31 million and above.
When the real estate market began to rebound starting in late 2020, Dubai Hills was one area that benefited greatly from plot sales in the previous post. Jumeira Bay followed, and now Tilal Al Ghaf has discovered a rich vein of buyers looking to construct their own houses.
Buy off plan, await delivery
This kind of ties into another trend that is starting to become clear: more purchasers nowadays are ready to wait for their houses to be delivered, which is driving a sharp increase in off-plan sales. Additionally, during the first three months, off-plan transactions reached multi-year highs (off-plan flat sales were up 95% as an example). The month of April seems to bring more of the same.
Even more amazing is the fact that villas are now included in the off-plan wave. The focus of buyers is now shifting to new developments that offer villas and promise delivery in three to four more years. 72% of villa sales during the first quarter were off-plan.
There are two things that can be affecting buyer preferences. One is that there aren’t many ready villas being marketed. The asking price for those that are being listed also includes large markups.
“Many buyers – mostly end-users – seem to be thinking they can wait and invest in off-plan villa options,” said an estate agent. “Most developers are willing to take only around 20-30 percent during the construction, and which provides buyers time to meet their commitments.”
Sobha puts up the ‘Reserve’
The ‘Reserve’ community in Dubailand was introduced this week by Sobha Realty. The Reserve will be an all-villa development with just over 300 of them, taking place from Tilal Al Ghaf. Even in this area, there are only four- and five-bedroom homes available, and they start at Dh7.68 million.
It comes on the heels of MAG’s most recent debuts in Meydan, the “Keturah Reserve,” which caters to purchasers who are ready to pay more for a deluxe setting and the solitude that comes with it.
“Developers who can offer community-styled projects with a limited edition of villas and extensive green/forested land have been drawing interest,” said the agent. “Buyer profiles of those picking up high-end property in Dubai are changing. Developers are paying a lot of attention to offering touches that would win over European buyers.
“The designs of these new villas are different, and so are the surroundings. Green areas are essential. Communities with golf courses used to be big – now, buyers think nothing about driving down to a course outside of the community.”
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