Company expects luxury segment to grow 15-20% this year
Dubai, United Arab Emirates, April 23, 2024: Penthouse.ae, powered by Metropolitan, a Dubai-based full-service real estate agency specializing in serving the needs of Ultra High Net Worth Individuals (UHNWIs), has reported record-breaking sales in March as it closed out a strong start to the year.
Fueled by Dubai’s thriving luxury property market, sales at the luxury brokerage surged 100% compared to Q1 last year. Penthouse.ae’s luxury real estate transactions in the first quarter of this year alone were almost on par with its total sales from H1 2023.
The company anticipates the luxury property segment to increase 15-20% this year, exceeding the projected overall market growth of 10%. To meet this demand, Penthouse.ae has expanded its team to 40 agents.
“We are witnessing a remarkable surge in Dubai’s luxury real estate market,” said Petri Mannila, Head of Luxury at Penthouse.ae. “Investor confidence in Dubai’s luxury market is soaring. In 2020, transactions exceeding $10 million were only a handful. Last year, that number skyrocketed to 419, showcasing a growing appetite for high-end properties.
“Demand for ultra-luxury properties is at an all-time high, fueled by limited supply and a growing number of global investors seeking secure and lucrative opportunities. Dubai’s unique combination of global connectivity, world-class lifestyle and investor-friendly environment continues to consolidate its position as a premier luxury property destination. The current market reflects this demand, with off-plan properties averaging AED 15,000 per square foot and secondary units at AED 10,000 per square foot,” he added.
The robust growth in Dubai’s luxury property segment is fueled by a variety of factors including a limited supply of readily available units, particularly completed properties. This shortage of available units is pushing up demand and prices, especially in the secondary luxury market. Investors are also attracted by the city’s unparalleled lifestyle, safety and security, investor-friendly government policies and a secure investment environment. Additionally, Dubai boasts some of the world’s best real estate returns, exceeding those of major cities like London and New York with property prices remaining comparatively lower. Attractive tax incentives further enhance the appeal for investors.
According to Penthouse.ae, Palm Jumeirah, Jumeirah Beach Residence (JBR), Downtown Dubai, World Islands, Palm Jebel Ali and DIFC are the most sought-after luxury property locations.
Luxury villa prices have witnessed remarkable growth, with Jumeirah Islands experiencing a staggering 65% increase last year. In the secondary market, Six Senses, Sensoria Tower and JBR are particularly popular.
While demand from Russian investors has softened in Q1 2024, interest from European, American and Central and South American buyers has increased, according to Petri. Waterfront properties and branded residences continue to be highly sought-after among investors.
Penthouse.ae is not only capitalizing on Dubai’s boom but also expanding its reach. Recent successful luxury property sales in Ras Al Khaimah (Nobu Residences) and Abu Dhabi’s Ramhan Island solidify the company’s position as a leading player in the region’s luxury real estate market.
Recently, Penthouse.ae was awarded the ‘Best International Real Estate Agency – Single Office – International’ and ‘Best Real Estate Agency – Marketing – Arabia’ 2023-24 at the International Property Awards. The International Property Awards celebrates the highest levels of achievement by companies operating in all sectors of the property and real estate industry. The Awards are open to residential and commercial property professionals from around the globe and is considered is a world-renowned mark of excellence.
