Driven Properties offers an insight into trends in Dubai’s luxury real estate market

In a rapidly urbanising world, the real estate sector often lies at the centre of growth and activity. Dubai’s real estate sector is also reflecting this trend. According to a report by Bloomberg, over the last year, real estate prices have risen by 89 per cent. In fact, as per the Dubai Land Department, more than 43,000 property transactions, exceeding $31.3bn were recorded in the first half of 2022 alone. Dubai also just witnessed the sale of the most expensive mansion on Palm Jumeirah for $82m alongside a host of other high-profile sales.

Lina Allaoa, associate partner at Driven Properties, says: “This year has definitely been a year of records, some of them set by us and some by others in the industry. The luxury real estate niche in Dubai is outstanding, and it seems the year ahead of us will continue to boom. We are excited to have a few extraordinary projects that will be launched in the months to come.”

Driven Properties, which offers turnkey solutions to its client’s real estate needs, be it property management, short-term rentals, interior design and mortgage consultancy, has also reaped the benefits of the uptick in the market. Abdullah Alajaji, founder and CEO of the Dubai-based real estate company, says he saw a lack of structure and dearth of institutional know-how in the market when he started Driven Properties in 2012.

He adds, “My background as an investment banker gave me an insight into how investors make decisions, and what information they require to take calculated risks. This approach set the foundation for how we operate as an organisation. Today, we are the largest real estate agency in Dubai, and an exclusive member of Forbes Global Properties; a consortium of 100 best brokerages in the world.”

Specialising in luxury real estate, Driven Properties has a well-rounded portfolio of properties across Dubai. Elaborating more about their company and its portfolio Kianoush Darban, associate partner, Driven Properties explains, “Last year, we sold the most expensive penthouse in Dubai at the time for a whopping Dhs85m. Jumeirah Bay Island has and is one of our strongest ares for residential sales. We enabled the sale of the most expensive residential plot, followed by the highest square foot price ever recorded in the UAE (Dhs12,624). Recently, we sold the most expensive townhouse ever sold in Dubai, which is also in the same area.”

Moving towards sustainability

Sustainability is a key trend these days and there is a clear demand for it among customers. Alajaji confirms, “Our recent project on Jumeirah Bay Island, Sea Mirror was fully sold out before the official launch and is a perfect example of combining modern architecture with nature in a sustainable way. The market lacked projects such as this, and as a means of addressing the shortfall, we launched Lamar Development, a development company that focuses on ultra-high-end projects that are designed in a sustainable way.”

With UAE moving towards a greener and sustainable future, it has become a responsibility for all property developers to put sustainable solutions at the heart of the construction process. The Dubai 2040 Urban Master Plan maps out a comprehensive plan for sustainable urban development. With the UAE’s 2050 net-zero commitment, the nation is well poised to be a regional leader in sustainable communities over the next 50 years. “For a country that has set so many records before, I have no doubt this will also be executed successfully. Many key sectors other than real estate will also be impacted, but I am confident we will all successfully implement initiatives designed by the government and achieve the goal by 2050,” says Alajaji.

 What customers want

The luxury property market in Dubai has always been about location. But what more are customers looking for in the city? Lina Allaoa explains, “Comfort, design, space and premium amenities are important factors as well. We have had a lot of success with Bulgari Resort and Residences, and Jumeirah Bay Island as a whole, which exemplify these factors.”

Kianoush Darban adds, “Certain projects on the Palm have been very successful, but if we are talking about the most popular area, nothing compares with Jumeirah Bay Island. Clients adore it mainly because of the privacy and exclusivity of the location, as well as direct beach access and unparalleled amenities.”

Being a cultural melting pot and cosmopolitan capital, it is easy to see why Dubai is gaining popularity to live, work and invest in. Buoyed by years of infrastructure and population growth, the market in Dubai has outperformed most global property markets, beating Paris, London, New York and Hong Kong. “When comparing the quality of life in Dubai with any other leading global city, it’s astonishingly affordable. Dubai has consistently seen some of the fastest population growth outside of China in the last decade because of its high safety index, its status as a tax haven, and its central geographic location,” concludes Alajaji.