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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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.”
