Luxury Dubai villa rents for $2.3m for two years
DUBAI, November 12, 2024
Growing demand for premium, ready-to-move homes in Dubai has been highlighted by the recent rental of an ultra-luxury villa at AED8.5 million ($2.31 million) over two years in the city’s Umm Al Sheif area.
The leasing deal for the 24,000-sq-ft villa on a 15,000-sq-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 AED60 million or higher, 833 fall within the AED30 million to AED60 million range, and 2,854 are priced between AED15 million and AED30 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 AED10 million. Between 2023 and 2024, resale transactions in this segment surged by more than 25 per cent, from AED9.8 billion to AED12.4 billion.
“Notably, this increase includes only resale transactions, and excludes off-plan sales, indicating a strong and consistent demand for luxury properties in Dubai,” he said.
In recent years, the market for properties above AED10 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 AED86.1 billion in sales in 2023, a dramatic leap of 1,245 per cent from AED6.4 billion in 2016. – TradeArabia News Service
