Billionaires Island draws super rich to secluded Dubai enclave
IN THE early days of the pandemic, Dubai’s property market was in turmoil, with an abundance of unsold homes and scant prospects for a recovery in the oil-rich region. But for Akshay Naheta, that proved the perfect time to buy.
The former SoftBank Group executive said he started scooping up land – gaining a partial interest in 20 per cent of the plots on the city’s secluded, seahorse-shaped Jumeirah Bay Island. Now, after several years of construction, that bet looks set to pay off as he and Lebanese developer Wissam Damaa launch a collection of 10 mega-mansions on the isle and neighbouring coast of La Mer.
Under the umbrella of their Dubai-based developer Palace Luxury Living, the pair said in an interview they expect to sell the villas for more than US$545 million in total.
The isle, known locally as Billionaires Island, has gained traction in recent years as a preferred place for the super rich – and some wealthy exiles – who have relocated to the United Arab Emirates (UAE). Brokers say the number of billionaires per square kilometre exceeds any spot in the UAE, including Palm Jumeirah, Emirates Hills and Dubai Hills.
The gated community, which boasts a yacht club, beach resort and fine-dining restaurants, is already home to Saudi billionaire Mohammed Abdul Latif Jameel as well as Israeli gambling tycoon Teddy Sagi, said sources who requested anonymity because the matter is private. Angolan magnate Isabel dos Santos and the wife of Russian billionaire Andrei Skoch also have houses in the neighbourhood, while football star Cristiano Ronaldo purchased a mansion that is set for handover in 2024, the sources said.
High-flyers without homes in the neighbourhood also use Jumeirah Bay Island as a base when they visit Dubai, such as Russian Foreign Minister Sergei Lavrov, who stayed at the Bulgari resort earlier this year, sources said.
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Representatives for Jameel, Sagi, Ronaldo, dos Santos, Skoch and Lavrov did not respond to requests for comment.
Dubai’s property market recently broke a decade-long record for home sales as the local government relaxed visa laws and introduced permits for jobseekers and freelancers. The surge has been driven by an influx of high-net-worth individuals, from rich Indians seeking second homes to crypto millionaires and Russian buyers.
Still, Dubai has over the years often had sharp booms and busts in its real estate market. S&P Global Ratings has cautioned that the emirate’s record property prices may start to fall by the end of next year after the recent hot stretch.
Large patches of the Jumeirah Bay Island were undeveloped until recently. It opened only in 2017 and then construction slowed as Covid-19 started to spread. That is changing, with a series of projects from Palace Luxury Living and others.
One of Palace Luxury Living’s 30,000 square foot mansions on the island features six bedrooms, private beach access and a seven-car showroom along with a spa, staff quarters and a rooftop pool with a full view of the downtown Dubai skyline.
Along the shore of La Mer is the developer’s 37,000 sq ft Geode mansion, which has a lush courtyard at its heart as well as six-bedroom suites and an indoor lap pool.
The villas sit along a stretch of the sun-splashed city that the pair dubs “the Golden Mile of Dubai” because of its five-star hotels, including the Mandarin Oriental, Four Seasons and Bulgari Resort plus Saint-Tropez style beach clubs.
The mansions in the collection are 20,000 to 45,000 sq ft, each valued upwards of US$27 million, according to Damaa, the developer.
Naheta, who bought his own Jumeirah Bay Island mansion in late 2020, compared the present buzz in Dubai’s luxury market with the rebound he saw in Hong Kong real estate during the mid-2000s. The isle’s relaxing vibe but proximity to the financial centre and international airport appealed to him, he said.
Faisal Durrani, head of Middle East research for Knight Frank, said Jumeirah Bay Island ranks among the most preferred locales in Dubai for super-rich clients.
Even if Dubai’s real estate market slows, some brokers say the impact could be less visible in the luxury market.
“The wave of high-net-worth individuals is a separate segment and less prone to general economic turmoils like higher interest rates,” said Asiya Khasnutdinova, a senior property consultant at Dubai Sotheby’s International Realty. “A lot of them are end-users and at the moment the Dubai lifestyle continues to be more and more attractive.”
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