Dubai’s residential property sector growth superseding that of London or Singapore is passé, as the city is now competing with itself with pockets such as Al Barari posting scorching growth rates – to the tune of 400 percent jump in property investment deals and a 35 percent rise in residential prices – outbidding other sought-after areas in growth charts in the first 9-month period of 2023, latest industry data revealed.
During the first nine months of 2023, Al Barari witnessed a staggering 400% surge in property investment deals and a 35% increase in residential prices, surpassing other highly sought-after districts in terms of growth, according to the latest industry data.
This ultra-affluent enclave in Dubai, renowned for its opulent villas and high-end apartment projects, also stands out for attracting more billionaires per square foot than other prestigious areas favoured by affluent global investors, primarily from Europe.
In contrast, other coveted neighbourhoods for super-luxury residential properties in the city, such as Palm Jumeirah, Emirates Hills, and Arabian Ranches, have experienced notably lower growth rates, especially in terms of price appreciation, with increases hovering around 27% or less during the January-September period.
“Data reveals a notable 35% upswing in Al Barari’s price per sq ft for 5-bedroom properties, skyrocketing from AED1,186 in January to a staggering AED1,611 in August 2023,” the latest market report by Allsopp & Allsopp, the city’s leading independent real estate agency, said.
The report also showed a whopping 400% surge in property investment deals exceeding AED10 million from January through September 2023, exclusively from cash buyers in Al Barari, fast emerging as Dubai’s most desired postcodes for super luxury and eco-friendly lifestyle.
“The average transaction stands at an impressive AED30.15 million, with the most opulent villa fetching a whopping AED72 million,” the report said, adding that majority of these transactions comprised villa units, showcasing the desire for space, privacy and luxury typical of UHNW (ultra-high net worth) investors.
The Allsopp & Allsopp report also revealed that European investors were predominant among the high-caliber buyers in super luxury home assets in Al Barari.
“There is a Luxembourgish investor flavour in the region this year as Europeans, predominantly from the United Kingdom and the Netherlands, are among the nationalities investing, despite the influx of Russian capital into real estate in the city, the report said.
He said the influx of elite investors also showcases a new trend in Dubai’s residential property sector. Opulent residential projects by the likes of Gilles Bindels are projected to further add to the charm of Al Barari to billionaire investors, promising prospects of superior returns.
Bindels’ latest masterpiece, Serenity, is billed as an epitome of luxury – a bespoke 5-bedroom villa built with unparalleled attention to detail, including 7.2-meter double-height ceilings and solid marble floors offering a grand welcome look.
The surge in prices in Al Barari in the 9-month period surpasses the higher growth rates in the luxury segment – upwards of 25% – than the 17% average growth across segments in the first half of 2023, as per earlier industry reports.
