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Petri Mannila, Sales Director of Penthouse.ae. Image courtesy: Penthouse.ae
Dubai, United Arab Emirates: Palm Jumeirah accounted for 30% of Dubai’s real estate deals in the AED 20 million plus property market in 2022. Dubai Hills added a further 20% of the total transaction volume last year in a segment which saw a total of 826 super luxury properties sold for a combined value of AED 29 billion.
Interest from HNWIs mainly from Europe and the USA is fuelling demand which is expected to grow by 20% this year, even as the price of opulent properties in Dubai continues to rise sharply.
“I have never seen this much interest from HNWI interested in moving to Dubai to either live here or for business,” said Petri Mannila, Sales Director of Penthouse.ae. Demand for Dubai’s uber luxury residences has reached unprecedented levels as the political and economic situation in affluent western markets, Russia and Asia continues to be uncertain, encouraging wealthy individuals to turn to safe havens where they can protect and grow their investments.”
Penthouse.ae was set up by Metropolitan Premium Properties in August 2022 to focus exclusively on high-end deals and in the short six months since its launch, it accounted for 20 of the premium properties sold in Palm Jumeirah and Dubai Hills.
The luxury property specialists represent licensed developers, sellers and buyers in Dubai’s most iconic locations with the biggest deal in its books last year being the AED 80.35 million sale of a unit at the Bulgari Residences.
“This is really a brand new segment in Dubai’s real estate market, given the fact that two years ago, such deals were only a handful, almost non-existent and yet today we are witnessing a market that this year may exceed AED35 billion in transaction value,” added Mannila.
Last year, the most expensive villa sold in Dubai was the AED 600 million villa on Palm Jumeirah while another villa on Dubai’s Billionaire’s Row sold for AED 302.5 million. Penthouse.ae recently listed an uber-luxury villa on the Palm Jumeirah for AED 800m.
HNW investors are the main reason for the rapid increase of Dubai property prices, which is averaging 8.72 percent across all segments according to the Dubai Land Department’s statistics, which also show that UHNW investors in prime districts of the city have doubled the average price of luxury apartments.
Mannila said: “We cater to connoisseurs of luxurious lifestyles and there is no bigger or better market for them in the world other than here in Dubai. Over 75 percent of the buyers are relocating permanently to Dubai as they deem the city as a safe and stable destination. Last year, the UAE attracted 4,000 millionaires and this trend will continue to strengthen.”
While currently only listing properties in Dubai, Penthouse.ae will also expand to cover properties in Abu Dhabi and will have a dedicated team of 25 luxury property experts by the end of this year. The department offers clients a complete 360-service from helping with visas, opening bank accounts, setting up companies, property management, legal services and more.