Dubai: Fully furnished luxury villa rents for Dh8.5 million in Umm Al Sheif

Demand for premium, ready-to-move-in homes intensifies as wealthy investor interest soars

Somshankar Bandyopadhyay

Published: Tue 12 Nov 2024, 9:44 PM

Dubai’s ultra-luxury real estate market continues to reach unprecedented heights, as the astronomical sales transactions are now being matched by similar values in the rental market as well.

Growing demand for premium, ready-to-move-in Dubai homes has been highlighted by the rental of an ultra-luxury villa at Dh8.5 million over two years in the city’s Umm Al Sheif area.

Record-breaking deal for 24,000 sq ft villa in the exclusive Umm Al Sheif area underlines Dubai’s appeal to wealthy investors

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The leasing deal for the 24,000sq ft villa on a 15,000sq ft plot is a record for the exclusive residential community in the western part of Dubai.

It was managed between fäm Living and fäm Lux, divisions of fäm Properties catering to ultra-high-net-worth clients and managing fully furnished luxury rentals.

“With Dubai attracting an elite audience of millionaires and billionaires, demand for premium, fully furnished, move-in-ready properties is intensifying,” said Firas Al Msaddi, CEO of fäm Properties.

While the UAE is forecast to attract an additional 6,700 millionaires by the end of 2024, the Dubai market has a limited supply of ultra-luxury villas.

DXB Interact reports that of the 61,558 villas set for completion over the next three years, only 379 are priced at Dh60 million or higher, 833 fall within the Dh30-60 million range, and 2,854 are priced between Dh15-30 million.

“This limited inventory, combined with Dubai’s reputation as a top destination for high-net-worth individuals, points to strong growth potential in the ultra-luxury segment,” said Al Msaddi. “The demand for high-end properties is also evident in the resale market, especially for apartments priced above Dh10 million.

Between 2023 and 2024, resale transactions in this segment surged by more than 25 per cent, from Dh9.8 billion to Dh12.4 billion. “Notably, this increase includes only resale transactions, and excludes off-plan sales, indicating a strong and consistent demand for luxury properties in Dubai,” Msaddi added.

In recent years, the market for properties above Dh10 million, encompassing both first-sales from developers, and resale transactions, has experienced major growth.

DXB Interact data reveals that ultra-luxury apartments and villas generated a record Dh86.1 billion in sales in 2023, a dramatic leap of 1,245 per cent from Dh6.4 billion in 2016.