Dubai: A plot of land in Dubai has been sold for 125 million dirhams (approximately Rs 278 crore). This is the most expensive plot sold in the UAE. The previous record in the land deal was 91 million dirhams.
"The sale solidifies the island's status as a super-prime destination," said property consultant Knight Frank to The National. The Jumeirah Bay Island is also home to the Bulgari Resort and Residences and the Bulgari Yacht Club. It is in the shape of a seahorse.
Andrew Cummings, partner and head of prime residential at Knight Frank, said that the exclusivity of the area is what made the land so expensive. "A $34 million real estate deal in Dubai 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."
"It’s 125 million for sand. Everything that’s been making the press has predominantly been spectacular villas, it’s been incredible penthouses and all this stuff. But this is just a massive record breaker for a land plot," he told Bloomberg.
"With only over 100 plots for people to buy, many owners see it as their forever home. So, when people approach owners to buy a property with big numbers and big profits, they don’t want to sell. Jumeirah Bay Island has not just cemented itself as the number one location for Ultra High Net Worth Individuals in Dubai, it has created a submarket only accessible by the ultra-wealthy," he told Khaleej Times.
The plot is 24,500 square feet in Jumeirah Bay. It is worth 5,100 dirhams per square foot. The international buyer is planning to build a mansion on the plot.
According to CBS News, the plot was owned by Umar Kamani, founder of UK-based fast fashion retail business PrettyLittleThing. He bought the property in 2021 for 36.5 million dirhams. Selling the land has earned him a profit of 242%, reported Fortune.
"Sellers are in quite a strong position at the moment to dictate where the prices are, because there are such limited options available for people to choose from, especially beachfront," said Lyndsey Redstone, one of the brokers on the 125 million dirhams deal.
Kamani also owns an identical plot close to the one he just sold. He is planning to sell it for 135 million dirhams.
Dubai is known for being a lucrative real estate market due to its tight supply. High-end properties are sold at very high prices and rich folks often choose the city to invest their wealth.