The other sought-after spots for luxury residential assets in the city such as Palm Jumeirah, Emirates Hills, and Arabian Ranches are estimated to have seen far lower growth rates.
The previous narrative of Dubai’s residential property sector outpacing that of London or Singapore has become outdated. Instead, the city is now in competition with itself, with areas like Al Barari demonstrating remarkable growth trends.
During the first nine months of 2023, Al Barari witnessed a staggering 400% surge in property investment deals and a 35% increase in residential prices, surpassing other highly sought-after districts in terms of growth, according to the latest industry data.
This ultra-affluent enclave in Dubai, renowned for its opulent villas and high-end apartment projects, also stands out for attracting more billionaires per square foot than other prestigious areas favoured by affluent global investors, primarily from Europe.
In contrast, other coveted neighbourhoods for super-luxury residential properties in the city, such as Palm Jumeirah, Emirates Hills, and Arabian Ranches, have experienced notably lower growth rates, especially in terms of price appreciation, with increases hovering around 27% or less during the January-September period.
“Data reveals a notable 35% upswing in Al Barari’s price per sq ft for 5-bedroom properties, skyrocketing from AED1,186 in January to a staggering AED1,611 in August 2023,” the latest market report by Allsopp & Allsopp, the city’s leading independent real estate agency, said.
Super luxury and eco-friendly lifestyle
The report also showed a whopping 400% surge in property investment deals exceeding AED10 million from January through September 2023, exclusively from cash buyers in Al Barari, fast emerging as Dubai’s most desired postcodes for super luxury and eco-friendly lifestyle.
“The average transaction stands at an impressive AED30.15 million, with the most opulent villa fetching a whopping AED72 million,” the report said, adding that majority of these transactions comprised villa units, showcasing the desire for space, privacy and luxury typical of UHNW (ultra-high net worth) investors.
The Allsopp & Allsopp report also revealed that European investors were predominant among the high-caliber buyers in super luxury home assets in Al Barari.
“There is a Luxembourgish investor flavour in the region this year as Europeans, predominantly from the United Kingdom and the Netherlands, are among the nationalities investing [in Al Barari], despite the influx of Russian capital into real estate in the city, the report said.
He said the influx of elite investors also showcases a new trend in Dubai’s residential property sector.
“Today’s ultra-rich aren’t just seeking grandeur, they’re investing in a harmonious blend of luxury and eco-consciousness that few places, other than Al Barari, offer,” King said.
He said with the last quarter of 2023 projected to be one of the busiest yet in real estate, and in a world where the elite seek unmatched luxury paired with conscious living, “Al Barari stands tall as a beacon of ultra-luxury living”.
Opulent residential projects by the likes of Gilles Bindels are projected to further add to the charm of Al Barari to billionaire investors, promising prospects of superior returns.
Bindels’ latest masterpiece, Serenity, is billed as an epitome of luxury – a bespoke 5-bedroom villa built with unparalleled attention to detail, including 7.2-meter double-height ceilings and solid marble floors offering a grand welcome look.
Senior executives at some of the other real estate investment firms also said Al Barari, often termed the new haven for the ultra-affluent, has been the focus of luxury enthusiasts from around the globe this year.
“The unmatched blend of luxury and eco-conscious ethos in Al Barari is cited as the pivots for channelising investments from the ultra-rich to the area, a 15-minute drive from the city centre,” a senior industry executive said.
The surge in prices in Al Barari in the 9-month period surpasses the higher growth rates in the luxury segment – upwards of 25% – than the 17% average growth across segments in the first half of 2023, as per earlier industry reports.
Dubai also made history this year by becoming the world’s leading luxury property market, generating close to $850 million (AED3.1 billion) from high-end residential units costing upwards of $10 million in the first six months of the year, topping London, New York and Paris for the first time, Knight Frank’s Destination Dubai 2023 report revealed.