Dubai developer H&H sees luxury property boom continuing in 2026
The firm seals a deal for a 106-key Capella hotel, bringing the Singaporean luxury chain to the city
Add BT as a preferred source
[DUBAI] Shahab Lutfi just sold a Dubai penthouse for US$108 million, and he’s betting that the boom in the city’s ultra-luxury property market will continue.
“We were talking about slowing demand two years ago,” the chairman of Dubai-based H&H Development said in an interview. “It hasn’t slowed, and prices have gone up.”
The firm last week began pre-sales of branded luxury residences, part of a 5.5 billion dirham (S$1.9 billion) high-end, mixed-use development called Janu Dubai in the city’s bustling financial centre.
The development shows how Dubai luxury property players continue to count on wealthy buyers from overseas and other investors to keep snapping up high-end real estate.
H&H has more than 30 billion dirhams in properties under development across Dubai, and the average price of apartments it sells is US$10 million, the chairman said.
The big bets on luxury property are not without risks. Geopolitical tensions have persistently reared up in the Middle East, and in recent weeks, tensions between the US and Iran have been in the spotlight.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
Lutfi admits that geopolitics have the potential to upend the market. But he’s seeing no signs of that happening so far, with demand still strong from rich overseas buyers. House-hunters returned to the market even after the 12-day war between Israel and Iran, he said.
“At one point, we were seeing many Eastern Europeans coming in. Now, it’s mostly people from the UK, Switzerland, France and other Western European cities who are moving both their families and businesses,” he added.
A long-time property executive in the emirate, Lutfi co-founded H&H almost two decades ago with Mohamed Al Hussaini, minister of state for financial affairs of the United Arab Emirates. At the time, Dubai had no high-end market to speak of, and barely any sales that would have hit US$10 million.
SEE ALSO
By contrast, about 500 homes sold for more than US$10 million last year, surpassing all global cities including New York and Hong Kong, Knight Frank indicated. The deals include a record 68 transactions above US$25 million.
Still, some analysts have begun flagging concerns about a potential slowdown after the multi-year boom. Last year, UBS Group sounded a note of caution when it warned that Dubai’s bubble risk had surged since 2022, leaving the property market looking increasingly overheated.
Lutfi says prices remain attractive to global buyers who are comparing Dubai with New York, Hong Kong and London. Comparatively, Dubai remains at least 50 per cent cheaper and often offers better amenities on branded homes, he said.
“Dubai pricing is still attractive on the global scale,” he said. “That gives me comfort because the buyers who are buying all around the world understand the value, and most are cash buyers.”
H&H’s properties are focused around three clusters: the Dubai International Financial Centre, beachfront on the peninsula in Jumeirah, as well as Emirates Hills.
To cater to Dubai’s influx of wealthy buyers, H&H’s latest project is Janu Dubai. The two-tower development includes a premium office building already bought ahead of construction by Abu Dhabi’s biggest developer, Aldar Properties.
It will also have a 150-key hotel and 57 branded apartments. “We sold the building and we sold the hotel – the only thing left is the residences,” Lutfi said. The hotel was bought by an Asian investment fund, he added, without naming it.
H&H started as a boutique development management firm, but soon after, it morphed into a developer known for building ultra-luxury hotels and serviced apartments operated by brands such as Aman Group, Baccarat, Four Seasons and Rosewood.
The firm recently inked a deal for a 106-key Capella hotel, bringing the Singaporean luxury chain to Dubai for the first time. The Janu brand is part of the Aman Group. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
