Dubai property market logs highest leasing deal at AED7.5M/year

Hannah Pratap from Betterhomes successfully closes most expensive rental transaction recorded in the UAE to date for a villa in Emirates Hills

Dubai saw the most expensive residential leasing transaction for a luxury villa in Emirates Hills this week at a whopping AED7.5 million (just over USD 2 million) annually. The record-breaking deal comes not long after the previous AED3.8 million/year record for a Palm Jumeirah property in July this year.

Hannah Pratap from Betterhomes, one of Dubai’s longest-standing real estate brokerages, successfully sealed the deal. In September 2021, she brokered another impressive rental deal in Emirates Hills for AED1.85 million (around $500,000). Details of the tenant and property were not disclosed for privacy and confidentiality reasons.

Known for its luxury and privacy, Emirates Hills is one of Dubai’s most sought-after residential communities. It is a mansion-filled enclave with custom-built villas on spacious plots that look out over the rolling greens of the golf course. 

Commenting on this record deal, Pratap said, “​​From my experience in these 2 massive deals I was involved in, I can say that tenants looking to rent luxury properties know precisely what they are looking for in their ideal homes. Since the rental amount is not an issue for them, they aim to get as many boxes of their requirements (if not all!) checked. Deals such as these require a certain level of ‘thinking outside the box’ in order to satisfy these bespoke requirements.” 

“Dubai’s luxury properties are not only aesthetically pleasing but also provide clients with value for money, safety and privacy, tax-free living and a wonderful, sunny climate all year round!” Pratap added.

Sales and leasing of larger properties in the market picked up during the lockdown in 2020. According to Betterhomes’ recently released market report for Q3 2021, the demand has continued since, especially in prime villa communities in Dubai, as tenants looked for more space for day-to-day activities. 

Dubai is also experiencing a new wave of migration, mostly comprised of senior professionals, investors, and entrepreneurs, which is impacting the residential leasing market. Lifestyle, favourable business environment, tax system and country's post-COVID resilience are the primary pull factors. 

New tenants in the market usually look at well-established apartment communities such as Downtown, Jumeirah Beach Residence, or the Marina. However, with an increasing number of high net worth individuals (HNIs) relocating to Dubai, the trend has shifted towards larger properties with a 63% increase in the number of rentals for villas with over five bedrooms in Q3 alone.

“The Dubai real estate market has seen a dramatic rise in demand for uber-luxury properties this past year, with a majority of the clients being HNIs migrating to the UAE. Most of them are looking to make the change for a plethora of reasons such as their desire for privacy, the post-COVID resilience of Dubai’s economy, and most importantly, the UAE’s response to the pandemic”, according to Pratap.

“These foreign tenants are currently flooding Dubai’s high-end property market, and the trend is showing no indication of slowing down. In fact, in my opinion, demand is going to increase in the coming months due to the new laws pertaining to UAE citizenship and golden visas.” Pratap added.