Relaxing in their new private outdoor Jacuzzi, the new owners of this penthouse in Dubai could be forgiven for thinking that they had made it.
The 9,365 square foot, triple-floor apartment located at the top of Marinascape Avant Tower in Dubai Marina includes four terraces, a private infinity pool and a private spa fitted with a steam room and sauna, all seen against the dramatic backdrop of the Dubai Marina skyline.
Inside, the grand, open plan-style minimalist property, which was last year fully refurbished, is a mass of stark white marble floors, white walls and huge windows. Most of the furniture is Fendi, while the bathroom and kitchen appliances have been shipped from Europe.
Currently being marketed at Dh22.5 million, the Dubai property broker Luxhabitat argues that the steep price tag still offers value for money for those rich enough to buy it.
For the same sort of money you could afford to buy a fairly unremarkable three-bedroom terraced house close to Victoria railway station in London or three-bedroom flat in Manhattan, just a fifth of the size.
"Considering that this is a huge, almost 10,000 square foot triplex penthouse, the price equates to around Dh2,500 per square foot, which is a very fair price relative to comparable similar penthouses in the Marina or other areas of Dubai," says Daniel Garofoli, the luxury sales specialist at Luxhabitat.
According to calculations by Knight Frank, US$1m buys 162 square metres of prime residential space in Dubai, while it would just buy 20 sq metres in Hong Kong, 26 sqm in New York and 30 sq metres in London – and that is without the higher transfer costs and property taxes in these cities. The same trend is being seen in luxury property in Dubai, albeit with wider price swings.
"If you look at the global metropolitan housing market, $1m will get you in Dubai a decent 1,000 square foot property anywhere in Marina, Downtown or the Palm Jumeirah – even a one-bedroom apartment in the famous Burj Khalifa," Mr Garofoli adds. "In all other hotspots of the world, that wouldn’t be possible. My prediction is that, in the long term, this will be the situation in Dubai as well."
Daniel Garofoli, a luxury sales specialist at the property broker Luxhabitat, talks about the market here:
Are prices for luxury apartments in Dubai rising or falling at the moment?
Prices are stable. Typical penthouse and luxury property owners are sophisticated individuals who have the time and the money to wait to find the right buyer and are in no distress whatsoever. The typical luxury real estate owner is also an end user, which means he takes extra care of a property, which will be appreciated from the right buyer – even if the sale takes longer (which can be the case in this current market.)
What is your forecast for prices for the rest of this year?
I don’t see dramatic shifts in the luxury sector of the real estate market coming in 2017. We will see prices neither rising sky-high nor falling. Our daily business confirms that. Even in a challenging market, the luxury sector is the last to drop and the first one to recover.
How is the development market in Dubai changing?
There are lots of new luxury developments on the way. New developments tend to sell at a market price now, which means that the resale margins are lower for the first owners. However, it also means the standard of the product is higher. Developers have listened to the market and made more cleaner, open plan floor plans and more effective use of space. Branded kitchen appliances, expensive imported marble and woods for the floorings, designer bathrooms – this is what the luxury market expects now.
lbarnard@thenational.ae
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