Dubai's ultra-luxury real estate market is scaling new peaks, with sky-high sales transactions now mirrored by equally impressive values in the rental sector. The burgeoning demand for premium, move-in-ready homes in Dubai has been underscored by the leasing of an ultra-luxury villa for Dh8.5 million over two years in the city's Umm Al Sheif neighborhood.

The leasing agreement for the 24,000sq ft villa on a 15,000sq ft plot sets a new record for the exclusive residential community in Dubai's western region. This deal was facilitated by fäm Living and fäm Lux, divisions of fäm Properties that cater to ultra-high-net-worth clients and manage fully furnished luxury rentals.

“Dubai is drawing an elite crowd of millionaires and billionaires, which is fueling the demand for premium, fully furnished, move-in-ready properties,” stated Firas Al Msaddi, CEO of fäm Properties. Despite forecasts predicting an influx of 6,700 new millionaires to the UAE by the end of 2024, Dubai's supply of ultra-luxury villas remains constrained.

DXB Interact reports that out of the 61,558 villas slated for completion in the next three years, only 379 are priced at Dh60 million or more, 833 fall within the Dh30-60 million bracket, and 2,854 are priced between Dh15-30 million. “This limited inventory, coupled with Dubai's status as a premier destination for high-net-worth individuals, suggests robust growth potential in the ultra-luxury segment,” noted Al Msaddi.

The demand for high-end properties is also evident in the resale market, particularly for apartments priced above Dh10 million. Between 2023 and 2024, resale transactions in this segment surged by over 25%, from Dh9.8 billion to Dh12.4 billion. “This increase includes only resale transactions, excluding off-plan sales, indicating a strong and sustained demand for luxury properties in Dubai,” Msaddi added.

In recent years, the market for properties priced above Dh10 million, encompassing both developer sales and resale transactions, has seen significant growth. DXB Interact data shows that ultra-luxury apartments and villas generated a record Dh86.1 billion in sales in 2023, a staggering 1,245% increase from Dh6.4 billion in 2016.

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