Under-construction penthouses in Dubai are attracting the uber-rich from around the world, igniting a fresh wave of bidding. While luxury apartments are drawing wealthy individuals to own a part of Dubai, penthouses are becoming a bigger status symbol.

The bidding wars for unbuilt Dubai penthouses have grown so intense, with house hunters paying 1 million dirhams upfront just to make expressions of interest. Only the highest bidder gets the penthouse, while the others would receive the refunds. Bidding has gone as high as $24 million for under-construction Dubai penthouses, reported Bloomberg.

“There is no guarantee they will be allocated apartments,” said Ajay Singh, a broker at La Capitale Real Estate. He explained that the bidding started at $12 million and has now doubled in value. Dubai’s under-construction penthouses are now competing in price with those of New York and London.

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Penthouse Boom in Dubai, Where Even the Uber-Rich Compete For a Piece

presidential penthouse Dubai
Source: Serenia Residences – The Palm, Dubai by Palma Holding

Dubai boasts the world’s hottest properties with high-yielding rental income. More luxury houses are being sold than in any part of the world. The housing market boom took off after the COVID-19 lockdowns and is yet to cool down. Rents have also doubled and tripled in many localities, making it the most sought-after investment for the wealthy.

The Dubai housing market is such that many houses get sold even before construction. This helps investors net the property at lower rates but hits a peak after the structure is completed. Ready-to-move-in apartments cost a premium, making investors flip the house and double their income in less than four years. Penthouses are now the most attractive piece of property in Dubai for the rich list.

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The majority of house hunters are mostly overseas investors, as the sale of luxury apartments has increased by 145%. However, average working-class house buyers are now facing the heat due to the unprecedented price rise. Forget the penthouse or luxury apartment; a mere 1 BHK now costs 600,000 to 900,000 dirhams. The price of a simple 2 BHK is above the 1 million range, making it unaffordable for those who dream of buying a house.

  • Dubai
  • Dubai Properties
  • Penthouse