In Dubai, landlords and investors are capitalizing on the trend of renovating and upgrading their properties with luxurious amenities to make millions in profits. The shortage of such properties in exclusive communities like Palm Jumeirah, Emirates Hills, Dubai Hills, and Al Barari has created a lucrative opportunity for property owners. Industry executives have reported that villa owners are earning up to a 275 percent premium or over Dh20 million by investing in renovations that cost around Dh8-12 million and adding around Dh30 million as a premium for the property.
These renovations are not just regular upgrades but involve highly expensive renovations that include lavish features such as cinemas, indoor and outdoor pools, gyms, steam rooms, spas, and elevators. The demand for such luxurious properties in posh areas has created a market where owners can charge a high premium due to the scarcity of such properties. Renovating a home not only increases the property value but also enhances liveability and market competitiveness, making it a lucrative investment for property owners.
The surge in property renovations in areas like Al Barari is attributed to the advantageous price per square foot compared to other popular hotspots like Jumeirah Islands and The Palm. Property buyers are attracted to Al Barari for its larger plot sizes and impressive community offerings in terms of wellness and lifestyle amenities. According to Ellie Street, area sales manager at Maria Morris Real Estate, the trend of renovating and reselling units at higher prices has contributed to a significant increase in sale prices, especially in older areas like The Lakes and Jumeirah Park.
Prathyusha Gurrapu, head of research and consulting at Cushman & Wakefield Core, has noted that the majority of villa districts in Dubai have experienced a year-on-year increase in sale prices of over 20 percent. The trend of renovating and reselling units at higher prices in areas with central locations, well-established schools, and spacious layouts has led to substantial premiums for property owners. With the growing demand for luxurious properties in exclusive communities, landlords and investors in Dubai are seizing the opportunity to make substantial profits by renovating and upgrading their properties.
