A villa on the Palm recently sold for Dh111 million – easily the priciest residential transaction in Dubai in the year so far.
Now, a developer is testing the Palm waters to gauge what sort of buyer interest is there for a penthouse apartment, with a tag of Dh26.8 million. Azizi Developments has started the handover of units at the Mina and expects to nail a deal for the penthouse soon enough.
“There are only two penthouses at the project – and I am keeping one for myself,” said Farhad Azizi, CEO. “The Mina handovers are happening at the best possible time… there is a fresh wave of interest for Palm properties. This is why we are quite confident about the chances of the second penthouse.”
The Dh26.8 million unit takes up 3,002 square feet and 7,228 square feet of balcony/terrace space with a private rooftop pool. The Mina is the developer’s second project on the Palm and is part of the 10,000 new homes it will be handing over this year in Dubai.
Azizi’s views about Palm and the demand for it are on the ball. The sale of the Dh111 million villa – called the One100 and located on the N frond – showed the world’s wealthy were again taking exposure in Dubai’s super-luxury residential space.
As has been the case in the past, any upturn in activity for Palm properties is indicative of a potential turnaround for the wider property market.
All coming together “Dubai now sits as a place where people wish to live, a place they wish to call home,” said Jason Hayes, CEO of Luxuryproperty.com, which sold the One100 to an overseas buyer. “We are now seeing discerning buyers looking for homes that are principal primary residences… not secondary or holiday homes.
“We are currently marketing three homes on the Palm Jumeirah - each with an asking price of above Dh100m and each very different in terms of their individual design aesthetic. Across the wider city, homes above Dh100m are a rare commodity.”
The changes made on longer-term visas are rated as a breakthrough for the property market, especially when it comes to pulling in more buyers wanting a mix of sun, water, lots of space, and all the comforts to call on.
Costliest penthouse ever The Palm also holds the record for hosting the costliest penthouse deal. Ominiyat sold a unit at The One Palm for Dh102 million in 2017 and took in another buyer for Dh73 million at the same project a year later.
“Although COVID-19 impacted the overall real estate market, we are starting to see resilience - and recovery - with many villa districts, particularly the Palm Jumeirah villas faring well,” said Edward Macura at Cushman & Wakefield Core, the property consultancy. “Limited renovated stock available on the Palm, particularly in the five-bedroom and plus segment, has led to an upturn in sales prices since the second quarter of 2020.
“Villa prices have increased by 12 per cent since July while Palm Jumeirah apartment prices gained 6 per cent (July 2020 vs. March 2021).”
For Azizi, these are all good tidings. The Mina handovers – starting prices for units are Dh2.6 million for a one-bed – also give the developer a chance to cater to the gradually increasing return of buyer activity for ready homes. Having a ready unit is what counts for developers in Dubai’s property market these days.
“Handovers are what we are focussing on – buyers are returning to Dubai property,” said Azizi. “What matters for developers is how quickly they can engage with buyers.”