Dubai sets new record for most expensive plot in $34m deal

The Jumeirah Bay plot is 24,500 sq ft and will be used to build a custom-designed mansion, Knight Frank says

Land prices in Jumeirah Bay have soared threefold in recent years, said Knight Frank. Photo: Luxhabitat Sotheby’s International Realty

A 24,500 square feet sand plot in Jumeirah Bay has sold for Dh125 million ($34 million), making it the most expensive land plot sold in the UAE.

The transaction last week surpassed the previous record for a land plot sale of Dh91 million, according to global property consultancy Knight Frank, which represented the seller and buyer in the deal.

The plot was worth Dh5,100 per square foot, the broker said on Monday.

The plot was sold to an international buyer, although their identity was not disclosed. They will build a custom-built mansion on the plot.

The seller is Umar Kamani, the 35-year-old founder of UK-based fashion retailer PrettyLittleThing, Knight Frank said.

“Demand has been very strong because of the exclusivity and scarcity of supply in Jumeirah Bay," Andrew Cummings, partner and head of prime residential at Knight Frank, told The National.

"With only over 100 plots for people to buy, many owners see it as their forever home. So, when people approach owners to buy property with big numbers and big profits, they don’t want to sell."

“A Dh125 million transaction would normally represent a spectacular penthouse or palatial mansion. However, Jumeirah Bay’s exclusivity means that this only buys you the sand on which to build your dream home.

“This is another sign that Dubai is the number one destination for international real estate investment due to the attractive lifestyle and business-friendly environment.”

Dubai’s luxury home sales hit Dh6 billion in the first quarter of 2023, with wealthy buyers snapping up 88 units valued at more than $10 million as prime property sales continued to pick up amid a wider economic recovery.

The emirate’s prime residential markets of Palm Jumeirah, Emirates Hills and Jumeirah Bay Island accounted for 64 per cent of luxury home sales during the three-month period, with average transaction prices in these high-demand locations reaching Dh8,800 per square foot, Knight Frank said in a report earlier this month.

Dubai has been ranked as the world’s fourth-most active market in the luxury residential segment as sales of prime properties continue to pick up, the company said in March.

Last year, the emirate recorded the sale of 219 homes priced above $10 million, with the total value of the transactions reaching $3.8 billion. That ranks Dubai behind New York (244 sales), Los Angeles (225 sales) and London (223 sales), according to Knight Frank.

The average price of ultra-luxury homes in Dubai rose by more than 27 per cent in the first quarter of the year compared with the previous quarter, according to a report by Luxhabitat Sotheby’s, based on data from the Dubai Land Department.

The average price of a prime property in the emirate increased to Dh25.2 million, the report said.

The plot was bought two years ago for Dh36.5 million, according to the Dubai Land Department, netting the seller a Dh88.5 million profit, Bloomberg said on Monday.

It is one of only 128 originally offered on Jumeirah Bay Island by developer Meraas Holding. All of the parcels were initially sold off years ago, it said.

The seller in the transaction owns an identical plot next to the one sold and plans to sell it for Dh135 million, the report added.

Jumeirah Bay Island has become a highly sought-after real estate commodity, with land prices soaring threefold in recent years, according to Knight Frank.

“This sale further solidifies the island’s status as a super-prime destination, joining the ranks of exclusive developments like the Bulgari Lighthouse, which recently set the record for the most expensive penthouse sale at Dh410 million,” the consultancy said.

The Bulgari Lighthouse tower deal, which set a record for the most expensive apartment sale in Dubai, was an off-plan purchase for a nine-bedroom home with five parking spaces, DLD data showed.

Set across 38,970 square feet, the price means it sold at Dh10,521 per square foot, with the deal registered on February 1.

Bulgari Lighthouse is a 27-storey residence overlooking the sea, and will have 31 penthouses.

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