Dubai Sets New Record with $34 Million Sale of Most Expensive Land Plot
Dubai has just set a new record for the most expensive land plot sold in the UAE, with a 24,500 square feet plot of land in Jumeirah Bay selling for Dh125 million ($34 million).
The previous record for a land plot sale was Dh91 million. The transaction was completed last week and was facilitated by global property consultancy Knight Frank, which represented both the seller and the undisclosed international buyer.
The seller was Umar Kamani, the 35-year-old founder of UK-based fashion retailer PrettyLittleThing. The buyer plans to build a custom-designed mansion on the plot. The price works out to Dh5,100 per square foot, making it the most expensive land plot ever sold in the UAE.
According to Andrew Cummings, partner and head of prime residential at Knight Frank, demand for property in Jumeirah Bay has been very strong due to the exclusivity and scarcity of supply in the area. With only over 100 plots available for purchase, many buyers view it as their forever home. As a result, when potential buyers approach existing owners, they are often met with resistance, and sellers are not keen to part with their properties.
Dubai’s luxury home sales hit Dh6 billion in the first quarter of 2023, with prime residential markets like Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island accounting for 64% of the sales. According to a report by Knight Frank earlier this month, the average transaction prices in these high-demand locations reached Dh8,800 per square foot.
The report also stated that Dubai has become the world’s fourth-most active market in the luxury residential segment. The average price of ultra-luxury homes in Dubai rose by over 27% in the first quarter of 2023 compared to the previous quarter, according to a report by Luxhabitat Sotheby’s, based on data from the Dubai Land Department. The report further noted that the average price of a prime property in the emirate increased to Dh25.2 million.
|Land plot size||24,500 sq ft|
|Price of land plot||$34 million (Dh125 million)|
|Price per sq ft||Dh5,100 per sq ft|
|Previous record for land plot sale||Dh91 million|
|Dubai luxury home sales in Q1 2023||Dh6 billion|
|Number of luxury home sales in Q1 2023||88 units valued at over $10 million|
|Percentage of luxury home sales in prime residential markets||64%|
|Average transaction price in high-demand locations||Dh8,800 per sq ft|
|Increase in average price of ultra-luxury homes in Q1 2023 compared to previous quarter||over 27%|
|Average price of a prime property in Dubai||Dh25.2 million|
|Number of plots on Jumeirah Bay Island||128|
|Increase in land prices on Jumeirah Bay Island||threefold|
|Profit made from sale of land plot by Umar Kamani||Dh88.5 million|
|Record for most expensive penthouse sale in Dubai||Dh410 million for the Bulgari Lighthouse tower|
|Rank of Dubai in the world’s luxury residential market||fourth-most active market|
Jumeirah Bay Island has become a highly sought-after real estate commodity, with land prices soaring threefold in recent years. It is home to only 128 plots, all of which were initially sold years ago. The plot in question was purchased by Umar Kamani two years ago for Dh36.5 million, which means he made a Dh88.5 million profit from the sale.
The sale of the plot further solidifies Jumeirah Bay Island’s status as a super-prime destination, joining the ranks of other exclusive developments like the Bulgari Lighthouse, which recently set the record for the most expensive penthouse sale at Dh410 million. The tower is a 27-storey residence overlooking the sea, and has 31 penthouses.