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Makeovers Generate Huge Profits In Dubai’s Luxury Homes.
Due to Mukesh Ambani’s eye-popping purchases of villas in Dubai, those looking to sell ultra-luxury homes to billionaires (even millionaires will do) are employing the tried-and-true method of renovation, makeover, customization, and sale. Because there are not many brand-new, extremely luxurious villas available for purchase at the moment, it might take one to three years before a new batch appears. Billionaires are not willing to wait around for very long.
This is why selling properties in Dubai for Dh100 million or more these days sounds a little boring. Because buyers like Ambani, one of the richest people in the world, are raising the stakes in the local real estate market by first purchasing a Dh280 million residence on the Palm earlier this year and then recently opting for a Dh600 million one, also on the Palm. In the interim, another buyer, whose identity is unknown, purchased a brand-new Palm villa from Alpago Properties for Dh302.5 million. Alpago Properties is constructing a collection of six ultra-luxury residences on the Palm’s Frond G.
Moreover, referring to it as “Billionaires Row” ‘429% value increase not everything is taking place just at the Palm. A mansion in Dubai Hills. Which is quickly establishing itself as a hotspot for luxury homes, recently sold for Dh205 million. All good, but look at these specifics.
The mansion over more than 42,000 square feet was first sold in February for Dh38.78 million (Dh913 per square foot). “The same home implausible Dh205 million (Dh4824 PSF) when the resale happened recently,” claimed Al Msaddi. The seller invested heavily in significant bespoke customization, and it has paid off well.
Worth of “Older” Properties
For the specific purpose of extracting “real value” from Dubai’s existing stock of older luxury/super-luxury homes, AHS Properties was established in late 2021. Abbas Sajwani’s company, AHS, recently finished selling first homes it had renovated and earned some handsome profits in the process. According to the company’s website, it plans to amass a $500 million portfolio by year’s end.
Many owners who sold one‘s villas as the first wave of demand struck in early 2021 would be starting to feel they missed on the mark-ups they would have gotten if they held back and sold now, according to one estate agent. However, staying put would have required them to make significant upgrades. To their home to make, it fit for a millionaire or billionaire. That would be having enough confidence to wager on improvements that might cost tens of millions of dirhams.
Beginning Of the Dh100m Race
The luxury housing market in Dubai really took off in March 2021, and it is still going strong today. Details of a $32.5 million deal for the “One100 Palm” on the island’s Frond N. Which has a private cinema, beautiful beach, and gourmet kitchens, came to light at the time.
Then came Ambani’s Dh280 million purchase before this summer. Which was followed by several sales totaling more than Dh100 million. A Jumeira Bay island property is also undergoing its own customization in preparation for a prospective Dh350 million sale. Alternatively, will that be altered in light of the increased demand?
“It’s a whole new ball game when deal values unexpectedly escalate to Dh600 million,” the estate agent said. There are prepared buyers. If the seller can transform their luxury villa into a super-luxury residence in the shortest amount of time.
