This sandy beach is only about 2,200 square meters wide and was recently sold for 125 million dirhams (more than 34 million USD) after 2 years of being abandoned.
According to Bloomberg, the owner of this sandbank is Mr. Umar Kamani, former CEO of the UK-based online retailer PrettyLittleThing. Mr. Kamani bought this land 2 years ago for nearly 10 million USD and did not build anything here. This means he just sat there and earned 24 million USD.
“Just a piece of sand for $34 million. Normally, properties with this price tag would be luxury villas or penthouses. This is a record for a vacant lot,” said Andrew Cummings, head of luxury residential at Knight Frank in Dubai.
The identity of Mr. Kamani’s client was not disclosed. However, according to Bloomberg, this person does not live in the United Arab Emirates (UAE) but wants to build a family resort villa there.
The allure of Jumeirah Bay
The reason for the sky-high prices is the shortage of real estate supply, especially in the high-end segment in this area.
The plot that was sold is one of 128 lots offered on Jumeirah Bay by Dubai government- backed developer Meraas Holding, making the area even more unique compared to the Palm Jumeirah with its thousands of apartments.
“Many owners have decided to live here for life, so they don't want to sell even though the profit is huge,” according to Mr. Cummings.
Jumeirah Bay Island is shaped like a seahorse and is just a bridge away from Dubai. Photo: remotelands.com
“Not only is Jumeirah Bay the number one location for ultra-high net worth individuals in Dubai, it has also created a sub-market that is only accessible to the ultra-wealthy,” said Mr. Cummings.
Land prices have tripled on Jumeirah Bay as it becomes one of Dubai's most sought-after property destinations.
Connected to mainland Dubai by a single bridge, the seahorse-shaped island boasts luxury resorts and retail stores, a marina and a seven-star hotel.
This is where the Bulgari resort is located, one of the most expensive resorts in the city. Although the Bulgari lighthouse tower has not yet been built, the apartments here have already sold at record high prices.
The top-of-the-line penthouse here (nine bedrooms with five parking spaces) sold for 410 million dirhams ($112 million) in February. The 27-story seafront apartment complex will have 31 penthouses.
Dubai real estate agents predict more price records will be broken in the coming time. Mr. Kamani also owns a similar plot of land and is planning to sell it for 135 million dirhams (nearly 37 million USD).
Real estate "reigns"
According to analysis by Knight Frank, a real estate brokerage firm based in London, England, there were 88 homes worth over $10 million sold in Dubai in the first quarter of 2023.
The emirate’s luxury residential areas including Palm Jumeirah, Emirates Hills and Jumeirah Bay Island continued to dominate luxury home sales, accounting for 64% of transactions in the first three months of this year.
According to Katie Burnell, deputy director of real estate consultancy Savills Middle East based in Dubai, the current boom in Dubai's real estate industry is not only due to exclusivity but also due to other factors, such as the large influx of customers from Russia.
Dubai has emerged as a haven for wealthy Russians looking to escape the impact of Western sanctions following the conflict in Ukraine. Photo: ariseplay.com
“Russians face a lot of restrictions on where they live or how they buy property, but they don’t have those problems in the UAE. They can do business and engage in finance. For them, price is not an issue,” said Burnell.
Many people choose to buy property in Dubai because the country imposes no taxes on property owners. Meanwhile, Dubai's crime rate is also very low, making the city an attractive place to invest.
In addition, the “golden visa” program that allows foreigners to reside long-term also helps the city attract the super-rich to invest in real estate.
Last year, Dubai sold 219 homes priced above $10 million, making it the fourth-busiest luxury housing market in the world. This year, the emirate is expected to continue setting new records in the real estate sector .
Nguyen Tuyet (According to First Post, Bloomberg, Business Insider)
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