A villa on Dubai's sought-after Palm Jumeirah has been rented on a six-month basis for Dh4 million ($1.09m), as rents for luxury properties across the city soar.
On a year-long tenancy this would equate to a record-breaking Dh8m, surpassing the previous record of Dh7.5m set by a villa in Emirates Hills last year.
“The homes that are currently coming to market are of a standard well above what we typically see in Dubai,” said Liam Ure, a senior private client adviser at LuxuryProperty.com, who closed the deal with colleague Ellie Chambers.
“We are looking at custom-built mansions with materials sourced from all over the world, design elements provided by renowned brands, and features that are wholly unique. You can’t really price ... that sort of property according to the standard market value ― they sit in their own separate price bracket.”
Details of the villa, such as size, precise location and tenant were confidential.
Rents across Dubai have been rising this year as the wider economy makes a strong recovery from the pandemic.
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My Dubai rent: Family's Dh130,000 villa in The Springs community reminds them of home
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Katie Plant lives in a three-bedroom villa in The Springs, Dubai. All photos: Ruel Pableo for The National -
The living room is light and airy. -
The family have made themselves at home in the close-knit community. -
Ms Plant and her family are loving life in The Springs after seven years in Dubai. -
The UK family are making more happy memories in their villa. -
The dining area of the three-bedroom property. -
Katie Plant and her family are reflecting on a happy year spent in The Springs community. -
The family acted fast to secure the home when they spotted it on the market. -
The large villa offers ample room for play time. -
The master bedroom. -
Ms Plant and her family are relaxed and happy in their home. -
The main bathroom is perfect for a small family. -
The villa features a guest room to accommodate family and friends. -
The picturesque view from the terrace. -
The cooler winter weather will mean more garden time. -
The garden is a perfect sun trap in winter. -
The community atmosphere reminds Ms Plant of life back in the UK. -
Lake views in The Springs.
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In the third quarter, on an annual basis, average villa rents were up 22 per cent while average apartment rents rose 15 per cent during the 12-month period, according to property consultancy Asteco.
It said villa rents on Palm Jumeirah recorded a 32 per cent annual rise.
The average villa rent on Palm Jumeirah in October was Dh954,384, CBRE said, with a 3.1 per cent increase month on month.
Prime residential values in Dubai, which encompass The Palm, Emirates Hills and Jumeirah Bay, have also risen dramatically.
They were up 89 per cent in the past 12 months, Knight Frank said, caused by an influx of ultra-high-net-worth individuals and lack of prime supply.
Last month, a property deal for the purchase of land worth Dh600 million ($163.4m) was recorded by the Dubai Land Department.
That came a few weeks after a record was set for Dubai's most expensive property with the sale of a villa on Palm Jumeirah for Dh302m.
With the bar having been raised for properties on Palm Jumeirah, landlords are rethinking their offerings.
“Landlords are really wising up to the fact that tenants want more out of a property than just a living space, and they would happily pay a premium for a home that stands apart from similar properties,” said Ms Chambers of LuxuryProperty.com.
“As such, a lot of time and effort has gone into upgrading villas. In some cases, the existing plot has been extended as well, and features such as home cinemas, home gyms and games rooms are becoming more commonplace.”
