$34 million for ‘sand’: Dubai’s most expensive land plot sale, explained

The United Arab Emirates (UAE) has witnessed its most expensive land plot sale ever. A sand plot spread across 24,500 square feet on Dubai’s artificial island of Jumeirah Bay was reportedly sold on 19 April for 125 million dirhams (US$34 million or Rs 278 crore).As per The National News, global property consultancy Knight Frank said this deal smashed the previous sale record of a land plot at Dh91 million.Let’s take a look at the most expensive land plot sold in Dubai and why Jumeirah Bay Island is so popular among the uber-rich.‘125 million for sand’Knight Frank, which represented the seller and buyer in the deal, said on Monday that the plot was valued at Dh5,100 (US$1389 or over Rs 1 lakh) per square foot.“It’s 125 million for sand,” Andrew Cummings, head of prime residential at Knight Frank in Dubai, told Bloomberg. “Everything that’s been making the press has predominantly been spectacular villas, it’s been incredible penthouses and all this stuff. But this is just a massive record breaker for a land plot.”[caption id="attachment_12504652" align="alignnone" width="640"] Dubai sold 219 homes priced above $10 million last year. Reuters File Photo[/caption]With this deal, the seller, British fashion entrepreneur Umar Kamani, earned a profit of 242 per cent profit for the land he kept only for two years, reported Fortune magazine.

The 35-year-old former CEO of online retailer PrettyLittleThing had bought the sand plot for 36.5 million dirhams.

Although the identity has not been disclosed, the new buyer, who does not live in the UAE, reportedly plans to build a family vacation home on the plot.ALSO READ: UAE announces new visa rules for long-term residency permitCharm of Jumeirah Bay IslandAccording to the Bloomberg report, the parcel of sand plot sold last week is one of only 128 originally offered on Jumeirah Bay Island by Meraas Holding, a government-backed developer. This adds to the exclusivity of the plot compared to thousands of residences on the iconic Palm Jumeirah, the report added.“Demand has been very strong because of the exclusivity and scarcity of supply in Jumeirah Bay," Cummings told The National."With only over 100 plots for people to buy, many owners see it as their forever home. So, when people approach owners to buy property with big numbers and big profits, they don’t want to sell."“Jumeirah Bay Island has not just cemented itself as the number one location for Ultra High Net Worth Individuals in Dubai, it has created a submarket only accessible by the ultra-wealthy," Cummings said, as per a Khaleej Times report.The report also mentioned that land prices have increased threefold in Jumeirah Bay Island as it has become one of the most sought-after real estate destinations in Dubai.Linked to the Dubai mainland by a single bridge, the seahorse-shaped island boasts of luxury resorts and retail, a yacht marina, as well as a seven-star hotel, reported Fortune.The yet-to-be-built Bulgari Lighthouse tower has seen its apartments being bought for record-high prices. Its top penthouse, which includes a nine-bedroom apartment with five parking spaces, was sold for 410 million dirhams in February.This 27-storey residence facing the sea will have 31 penthouses.“Sellers are in quite a strong position at the moment to dictate where the prices are, because there are such limited options available for people to choose from, especially beachfront,” Knight Frank’s Lyndsey Redstone, one of the brokers on the 125 million dirhams deal, was quoted as saying by Bloomberg.Kamani owns an identical plot close to the one sold, which he is planning to sell for Dh135 million, according to the Bloomberg report.Cummings said that master development rules do not allow subdividing the land parcels on Jumeirah Bay; however, some buyers have joined plots to expand space for luxurious mansions, the report added.Notably, only some homes on the island have been finished.ALSO READ: ‘Most Noble Numbers’: Why the car number plate 'P7' became the world's most expensiveDubai’s thriving real estateAs per Knight Frank’s analysis, 88 homes priced above $10 million was sold in Dubai in the first quarter of 2023.The emirate’s prime residential neighbourhoods of Palm Jumeirah, Emirates Hills and Jumeirah Bay Island continue to dominate luxury home sales, making up for 64 per cent of such transactions in the first three months of this year.[caption id="attachment_12504672" align="alignnone" width="640"] Palm Jumeirah, Emirates Hills and Jumeirah Bay Island are Dubai's prime residential destinations for luxury houses. Reuters File Photo[/caption]The average cost of ultra-luxury homes in these prime locations touched 8,800 dirhams per square foot during the first quarter of 2023, noted The National. While Russians have been flocking to Dubai to buy properties, the city’s long-term resident “golden” visas have also lured other wealthy people to invest in Dubai real estate, as per Bloomberg.Last year, Dubai recorded the sale of 219 homes priced above $10 million, which made it the fourth busiest luxury home market globally, reported Khaleej Times. This year, the emirate is believed to further set new records.With inputs from agenciesRead all the Latest News, Trending News, Cricket News, Bollywood News,India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.