Three large beachfront plots on an exclusive Dubai island have been sold for a collective Dh1 billion ($272 million) in the past two months, in a sign that ultra-wealthy investor interest remains resilient despite the Iran war.
A third coastal plot on Naia Island was sold to a Middle Eastern buyer this week for Dh167 million, real estate broker Dubai Sotheby’s International Realty confirmed to The National.
That follows the sale for Dh560 million last week of a plot measuring 80,000 square feet (7,400 square metres) to a European buyer, and another on the island in late April for Dh377 million.
The buyers are all end-users, rather than investors, said George Azar, chairman and chief executive of Sotheby’s International Realty in the UAE, UK and Saudi Arabia.
“The recent transactions cannot simply be classified as growth in high-end residential land plot sales. Terms such as ‘high-end’ or ‘residential land plots’ can very easily lead one to envision something accessible to ‘investors’ looking to acquire a premium asset to grow their wealth,” he said.
“But in reality, we are dealing with a very different tier of wealth and talking about super-prime estates – given the sheer scale and scarcity of the land – which are highly exclusive and selectively held for UHNWIs [ultra-high-net-worth individuals] as end-users.”
Naia Island is a new man-made island being developed along the Jumeirah coast, featuring private villas, beachfront residences and estate plots built around a Cheval Blanc Maison Hotel. The project is being developed by investment firm Shamal Holding.
At present, there are only a “handful of individuals globally” operating in the Dh200 million-plus bracket, according to Mr Azar.
“In cases like Naia, where access itself is highly selective, this small pool of buyers acquires super-prime estates as long-term trophy assets and are not on the lookout for incremental appreciation,” he said.
“They are establishing a lasting presence in this city and securing what will become one of the most exclusive addresses they own globally.”
Wealth magnet
The UAE in the past few years has been attracting a large number of high-net-worth individuals from around the globe amid government initiatives such as residency permits for retired and remote workers, expansion of the 10-year golden visa programme and strong economic growth.
The Arab world’s second-largest economy is estimated to have attracted a record 9,800 relocating millionaires last year, drawn by regulatory reforms and a tax-free lifestyle, a report by Henley & Partners and wealth intelligence firm New World Wealth found. In 2024, Dubai had an estimated 81,200 millionaires and 20 billionaires.
The UAE also remains the global leader in super‑prime residential performance, consultancy Knight Frank said in an April report.
Dubai continued to dominate globally, with 500 homes sold for more than $10 million each last year, the report found. This marked an increase in volume of 15 per cent year-on-year, and a rise of about 28 per cent in values to $9.05 billion.
Of the total sales, 68 properties were valued at more than $25 million, with numbers within that segment up nearly 48 per cent annually.
Despite the Iran war, which began on February 28 and has severely affected the Gulf states, property activity in the UAE, and particularly in Dubai, has largely continued.
Nearly Dh200 billion in residential real estate transactions were recorded in the first five months of this year in Dubai, down about 10 per cent annually, according to property consultancy Cavendish Maxwell, which used Dubai Land Department data. This points to “continued market depth despite regional uncertainty”, said Zacky Sajjad, director of business development at Cavendish Maxwell.
“The conflict has created some caution, particularly around timing and decision-making, but we have not seen evidence of wealthy buyers withdrawing from Dubai as a long-term proposition. Dubai continues to benefit from its perceived stability, infrastructure, tax environment, connectivity and lifestyle offering,” he said.
Looking specifically at plots, prime land is increasingly viewed as a scarce asset, particularly in established or waterfront locations, he said.
Dubai has “continued to see activity” in high-end residential land plots because the buyer profile in this segment is “typically less debt dependent” and more long-term in outlook, Mr Sajjad added.
“These purchasers are often end-users, family offices, regional developers, private investors and HNWI/UHNWI buyers who want control over design, privacy, plot size and location.”
Mr Azar similarly stressed that the regional situation has not “materially” deterred interest from UHNWIs in the market and, in some cases, has created a “short pause in decision-making”.
“That said, at the super-prime level, the drivers are fundamentally different. These are not cycle-dependent decisions in the traditional sense,” he said.
“Dubai has always been on the radar of the UHNWIs and when the right trophy asset becomes available, the decision-making process is typically very swift, because it is driven by scarcity and long-term intent.”