In the realm of residential property, Dubai’s growth now surpasses that of London or Singapore. The city competes with itself, particularly areas like Al Barari, which have seen remarkable growth, boasting a 400% surge in property investments and a 35% increase in residential prices during the first 9 months of 2023, according to the latest industry data.
The ultra-affluent Dubai pocket with marquee super luxurious villas and apartment projects also boasts of attracting more billionaires per square feet than the other tony areas high on the shopping list of wealthy investors from around the world for high-end homes, mostly from Europe.
The other sought-after pockets for super luxury residential assets in the city such as Palm Jumeirah, Emirates Hills, and Arabian Ranches are estimated to have seen far fewer growth rates, especially for price rises with around 27 percent and less, in the January-September period.
“Data reveals a notable 35 percent 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 revealed an astounding 400% increase in property investment transactions surpassing AED10 million from January to September 2023, according to Arabian Business.
These transactions were exclusively carried out by cash buyers in Al Barari, which is rapidly becoming one of Dubai’s most sought-after areas for super-luxurious living and eco-friendly lifestyles.
“The average transaction stands at an impressive AED 30.15M, with the most opulent villa fetching a whopping AED 72M,” the report said, adding that the majority of these transactions comprised villa units, showcasing the desire for space, privacy and luxury typical of UHNW (ultra-high net worth) investors.
European Investors Lead the Way in Al Barari’s Luxury Real Estate
The Allsopp & Allsopp report also indicated that European investors took the lead among the affluent international buyers who are increasingly attracted to Al Barari for super-luxury residential properties.
“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 [in Al Barari], despite the influx of Russian capital into real estate in the city, the report said.
“Al Barari is more than a postcode; it’s a statement,” Charlie King, Partner at Allsopp & Allsopp, told Arabian Business.
He said the influx of elite investors also showcases a new trend in Dubai’s residential property sector.
“Today’s ultra-rich aren’t just seeking grandeur, they’re investing in a harmonious blend of luxury and eco-consciousness that few places, other than Al Barari, offer,” King said.
He said with the last quarter of 2023 projected to be one of the busiest yet in real estate, and in a world where the elite seeks unmatched luxury paired with conscious living, “Al Barari stands tall as a beacon of ultra-luxury living”.
He mentioned that as we anticipate the final quarter of 2023, which is expected to be exceptionally busy in the real estate sector, and in a world where the elite seeks a combination of unrivalled luxury and conscious living, “Al Barari stands prominently as a symbol of ultra-luxurious living.”
Al Barari’s Luxury Real Estate Market: Attracting Billionaire Investors and Global Attention
Opulent residential projects by renowned developers like Gilles Bindels are set to further enhance the allure of Al Barari for billionaire investors, offering promising prospects of exceptional returns.
Bindels’ latest masterpiece, Serenity, is hailed as the epitome of luxury—an individually crafted 5-bedroom villa distinguished by meticulous attention to detail, featuring impressive 7.2-meter double-height ceilings and pristine marble floors that provide a grand and welcoming ambience.
The luxury segment, in particular, has outpaced other market segments in terms of price increases.
Senior executives from various real estate investment firms have also expressed that Al Barari, often referred to as the new haven for the ultra-affluent, has garnered significant attention from luxury enthusiasts around the world this year.
“The unmatched blend of luxury and eco-conscious ethos in Al Barari is cited as the pivots for channelizing investments from the ultra-rich to the area, a 15-minute drive from the city centre,” a senior industry executive said.
The price increase observed in Al Barari during the 9-month period surpasses the relatively higher growth rates in the luxury property segment, which were above 25%, compared to the overall 17% average growth across different market segments during the first half of 2023, as indicated in previous industry reports.
In a historic achievement this year, Dubai also emerged as the world’s premier luxury property market, generating nearly $850M (AED 3.1B) from high-end residential units priced at $10M or more during the initial six months of the year. This marked the first time Dubai outperformed London, New York, and Paris in this regard, as reported in Knight Frank’s Destination Dubai 2023 publication.
