Where could $34 million take you in the universe of luxury? It could invite a treasure trove of opulence, whether that’s an extravagant mansion, a historical castle, sprawling estates, fleets of high-end sports cars like Lamborghinis, luxury Rolls-Royce Phantoms, or even a private aircraft. However, in Dubai’s premier property market, this hefty sum might just fetch you a mound of sand – more specifically, a vacant plot on the prestigious Jumeirah Bay Island.
A barren stretch of land spanning 24,500 square feet recently traded hands for an astounding $34 million, drawing attention to the extraordinary grandeur of Dubai’s property market where costs frequently mirror the city’s soaring architectural wonders.
British entrepreneur Umar Kamani, co-creator of the fashion retailer PrettyLittleThing, recently sold this undeveloped land, seeing a remarkable appreciation of 242% from his initial investment of about $10 million in 2021. The purchaser of the plot remains anonymous, but the transaction clearly indicates the resilience of Dubai’s real estate sector amidst global economic fluctuations.
The plot is nestled amongst 128 unique lots on the artificial island, which is accessible via a 1,000-foot bridge connecting it to mainland Dubai. Andrew Cummings of Knight Frank Dubai, who facilitated the sale, described Jumeirah Bay as “the crème de la crème,” suggesting that it’s the go-to location for ultra-wealthy individuals scouting for premier property in Dubai.
The 6.3 million-square-foot Jumeirah Bay Island, which from above resembles a seahorse, is a haven of luxury, featuring a five-star hotel co-developed with Italian luxury brand Bulgari. This island paradise also hosts sandy beaches, a yacht-filled marina, gourmet restaurants, a fitness center, and a wellness spa. A selection of opulent apartments is also on offer within the Bulgari hotel complex.
In recent years, the sale of two similar plots on the island, totaling over $49 million, signified the escalating value of land on Jumeirah Bay. Its advantageous position, nestled amongst Bulgari, the Four Seasons, and Dubai’s downtown and business district, enhances its charm. However, it’s the unique blend of seclusion and exclusivity, with only about 100 plots available compared to Palm Jumeirah’s thousands, that sets it apart.
Despite Palm Jumeirah being recognized as the largest artificial island in the world, Jumeirah Bay Island, which is considerably smaller, is considered more exclusive. Cummings suggests that the island is “designed for the topmost echelon, those planning their lifelong residences or luxury holiday homes.”
Dubai’s property market has been flourishing recently. In 2021 alone, Dubai witnessed 93 property transactions exceeding $10 million, outpacing the total number from the previous seven years combined. That figure jumped to 221 in 2022, with 88 similar deals reported in the first quarter of 2023 alone.
The global pandemic indirectly fuelled this surge. Cummings notes that the past two years have seen people yearn for larger living spaces and beachfront properties. Dubai’s excellent management of the pandemic, high vaccination rates, safety, security, and lifestyle offerings attracted a significant number of foreign investors.
Of the original 128 lots on Jumeirah Bay Island, a little over 100 are left, with some purchasers consolidating lots to build more substantial villas. Although most lots remain unoccupied, Cummings expects an upward valuation trend after this sale and the forthcoming mansion constructions. A property currently under construction, which is expected to be listed later this year, could easily command a price of over $100 million.
As for Kamani, he’s not likely regretting his recent sale, as he owns a similar plot next door. Should he choose to sell that too, he may very well outdo his previous record. “He’s established the standard,” remarks Cummings, “so he might just set a new one.” The allure of Jumeirah Bay Island continues to captivate the world’s affluent individuals, adding an enchanting seahorse-shaped dimension to Dubai’s thriving property scene.
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