Dubai developers launch ultra-luxury mansions and penthouses to attract global buyers

Dubai’s luxury real estate market is reaching new heights as developers unveil a fresh wave of opulent mansions and penthouses, complete with private cinemas, spas, and even personal elevators. These ultra-high-end residences, priced between $60 million and $120 million, are attracting affluent buyers from Europe, Asia, and the Americas, drawn to Dubai’s extravagant lifestyle and relative affordability compared to other global hubs.

In a city known for pushing architectural boundaries, developers are going to extraordinary lengths to satisfy elite clientele. One luxury builder imported a custom-designed glass wall from overseas to ensure the owner’s uninterrupted sea view, while another created a private lobby and elevator for a penthouse so large it spans two towers. In yet another display of engineering ingenuity, a mansion was outfitted with a movable pool floor that transforms into a seamless garden space for exclusive events.

Despite some signs of cooling in Dubai’s overall property market following a post-2021 surge, developers remain committed to adding palatial residences along the city’s prime waterfront locations. The ultra-luxury sector remains the most lucrative, with projects like Sankari Properties’ $1 billion luxury tower aiming to set new benchmarks in high-end living.

Dubai outpaces global luxury markets

Dubai’s luxury housing market continues to defy global trends, where prime residential prices are slowing or declining in cities like New York and Hong Kong. In 2023, the emirate recorded 435 property sales exceeding $10 million, surpassing both New York and Hong Kong, according to Knight Frank, as reported by Bloomberg. The research firm predicts at least a 5% price increase in Dubai’s ultra-luxury segment this year, building on a 67% surge since 2021.

For global investors, Dubai remains an attractive destination where real estate offers more space and value than other luxury markets. On a per-square-foot basis, prime Dubai properties cost only a third of New York’s prices and a fifth of London’s, according to Mahdi Amjad, founder of Omniyat, who told Bloomberg:

“We benchmark our buildings against buildings in New York and we find that for similar ticket prices, or maybe lower ticket prices, you get by far more space and by far more experiences and amenities.”

Amjad also revealed that Omniyat plans to add 100 additional ultra-luxury homes this year, reinforcing Dubai’s reputation as a global luxury hub.

Engineering marvels and unparalleled customization

To compete with other global luxury hubs, Dubai’s developers are constantly innovating. Bloomberg recently visited a construction site featuring a retractable glass dome covering a private pool and spa, allowing homeowners to sunbathe at their convenience. Other mansions include winding pools that allow residents to swim from a bar to a spa, and rotating parking platforms on Dubai’s exclusive Billionaire Island, ensuring that luxury cars are always positioned perfectly.

Dubai is also cementing its status as a top destination for millionaires. Henley & Partners estimates that 6,700 millionaires will relocate to the UAE in 2024, surpassing all other countries. However, catering to the ultra-wealthy comes with challenges, as developers face rising costs for high-end materials, custom designs, and advanced construction techniques.

One such example is Wissam Damaa, founder of Palace Group, who spoke to Bloomberg about a client’s request for a 17-meter-wide glass wall in his mansion. The massive single-pane glass, designed to disappear at the push of a button for an uninterrupted sea view, required months of coordination with German and Swiss engineering firms, specialized transport approvals, and even an underground storage system.

“Most of our clients have multiple homes in cities across the world and they’re very specific about what they like and what they expect,” Damaa told Bloomberg.

His company currently has 15 ultra-luxury mansions and a $4.4 billion luxury apartment development under construction, demonstrating the scale of demand for Dubai’s high-end properties.

While Dubai’s luxury market remains strong, some real estate experts note that price growth is beginning to stabilize, and securing prime development plots is becoming more difficult. Honey Deylami, executive partner at Dubai Sotheby’s International Realty, told Bloomberg that while demand continues to outstrip supply, buyers are becoming more selective amid recent price increases.

“The market is still short of supply of ultra high-end that’s ready to move into,” Deylami told Bloomberg. “There is a lot of supply in the pipeline or under construction but that’ll require three to four years before it hits the market.”

Even as some of the recent market exuberance moderates, Dubai’s developers remain committed to crafting one-of-a-kind luxury residences, reinforcing the city’s reputation as one of the world’s premier real estate destinations.