Buyers like the world's richest man, Ambani, are stepping up their investments in the local real estate market, first buying a Dh280 million house on Palm Island earlier this year and then more recently buying a Dh600 million house also on Palm Island.
In between, another unidentified buyer bought a brand new Palm Island villa for Dh302.5 million from Alpago, which is building six super-luxury residential plots in Frond G, Palm Island, and calling it Billionaires Row.
The 429% appreciation is not only in Palm Island. With a recent sale of a luxury home for Dh205 million, Dubai Villas is quickly establishing itself as a luxury residential hotspot.
The mansion, which spans more than 42,000 square feet, was originally sold in February for Dh38.78 million."
AHS Real Estate was established at the end of 2021 with the specific aim of extracting real value from existing older or ultra-luxury homes in Dubai.
AHS, owned by Abbas Sajwani, recently completed the sale of its initially converted homes and made some handsome returns in the process. According to its website, the company hopes to build a $500 million portfolio by the end of the year.
Many owners who sold their villas when the first wave of demand arrived in early 2021 will feel that the markup they would have received had they refused to sell.
However, sticking around will still require them to invest a significant amount of money to make their home suitable for a millionaire or billionaire to live in. That is to have enough confidence to bet on an upgrade that could reach tens of millions of dirhams.
Dubai's luxury residential market started steadily in March 2021 and is sure to continue.
At the time, One100 Palm in Frond N showed details of a $32.5 million deal. It has a private theater, a private beach and a gourmet kitchen.
Multiple deals of more than Dh100 million followed, before Ambani bought it for Dh280 million by this summer.
One island property in Jumeirah Bay is undergoing its own customization and could be sold for Dh350 million.
It's like a whole new ballgame when the value of the deal suddenly rises to Dh600 million.
If someone owns a luxury villa and wants to sell it, there are ready buyers as long as the seller can turn it into an ultra-luxury home in the shortest possible time.
Led by investors and real estate development or management companies, the Dubai real estate market is shaping up as a new investment sector.
Experienced real estate investors have realized that they can create great value by building custom luxury villas in Dubai.
