Landlords and investors in Dubai are making millions by renovating and upgrading their properties with uber-luxury amenities amid a shortage of such properties in popular communities such as Palm Jumeirah, Emirates Hills, Dubai Hills and Al Barari.
Industry executives said villa owners are earning up to 275% premium or over Dh20 million in a short span of time after spending around Dh8-12 million on upgradation and adding around Dh30 million as a premium for the property.
These, however, are not regular upgrades but hugely expensive renovations incorporating lavish features such as cinemas, indoor and outdoor pools, gyms, steam rooms, spas and elevators among others.
As it is, renovating a home offers numerous benefits, including increased property value, enhanced liveability, and market competitiveness. And such luxurious additions only allow owners to charge a high premium amid a shortage of such properties in posh areas.
“The surge in property renovations that we are seeing in places like Al Barari stems from its advantageous price per square foot as compared to other popular hotspots such as Jumeirah Islands and The Palm. Property buyers are drawn to Al Bararu owing to larger plot sizes and impressive community offerings in terms of wellness and lifestyle amenities,” said Ellie Street, area sales manager at Maria Morris Real Estate.
Prathyusha Gurrapu, head of research and consulting at Cushman & Wakefield Core, said the majority of villa districts that they track have experienced a year-on-year increase in sale prices of above 20%.
“One contributing factor to this surge in villa sales prices, especially in older areas like The Lakes and Jumeirah Park, is the trend of renovating and reselling units at notably higher prices, which elevates the average price in these areas. These villa districts boast of central locations with well-established schools and amenities as well as spacious layouts, therefore, after upgrades, they can command and achieve substantial premiums,” she added.