Dubai is known for its over-the-top luxury real estate market, with glittering high-rises dotted along the Persian Gulf coastline. From penthouses with private pools and home theatres to apartments decked in gold and diamonds, Dubai sets the standard for lavish living. If you’re looking to buy a luxury apartment in Dubai, this guide will walk you through key factors to consider, from prices to locations to amenities.
How Much Does A Luxury Apartment Cost in Dubai?
Regarding luxury real estate in Dubai, the sky's the limit - literally. Luxury apartments in Dubai can cost anywhere from AED 2 million (US$545,000) for a high-end apartment to over AED 100 million (US$27 million) for a penthouse in the top buildings. In Downtown Dubai, one of the most popular areas for expats and luxury seekers, the average cost per square foot for a high-end apartment is AED 2,500-4,500.
So what does that buy you? For a 2-bed, 2,500-square-foot apartment in Downtown Dubai, you’re looking at approximately AED 6.5 million (US$1.77 million) on the low end. The most expensive penthouse apartment ever sold in Dubai was a 4-floor, 16-bedroom unit in ONE at Palm Jumeirah that went for a record-breaking AED 240 million (US$65 million) in 2019.
Some factors impacting the price include the building, apartment size, number of bedrooms/bathrooms, facilities/amenities, and view. Newer buildings with more amenities and better locations/views fetch higher prices per square foot. When reviewing listings for luxury apartments in Dubai, be sure to factor in service charges and utilities, which can add tens of thousands of AED per year, depending on the building.
What Is The Most Luxurious Apartment Building In Dubai?
With dozens of ultra-luxury high-rise apartment buildings across Dubai, there’s much competition for the top spot. But a few addresses stand out even among Dubai’s glittering skyline - these luxury apartment towers offer over-the-top amenities, billionaire neighbors, and sleek architecture.
One of the most luxurious apartment buildings is the 830-foot tall 8 Boulevard Walk by Emaar in Downtown Dubai. These elite residences sit in the heart of Dubai’s bustling downtown district with unobstructed views of the Burj Khalifa and vibrant fountains at The Dubai Mall. With a private residents-only club, infinity pool, and 24-hour guest suites for visitors, it’s a coveted address befitting Dubai’s luxury lifestyle. Apartments feature bespoke Hermès interiors with price tags from AED 9 million up to AED 50 million.
For waterfront living, One at Palm Jumeirah takes the luxury cake. This exclusive building on Dubai’s iconic man-made Palm Island features a private marina for residents’ yachts, a luxe spa, pools, gardens, and even a climbing wall. Sweeping sea views command a premium - a 6-bed penthouse at One Palm recently sold for AED 240 million, setting a record for Dubai’s priciest apartment transaction.
Over in Dubai Hills Estate, luxury icon Bulgari Residences brings Italian flair with mosaic-tiled pools and an exclusive Bulgari Spa. Two to five-bed residences start from AED 5.8 million, while the Bulgari Penthouse with panoramic Dubai skyline views clocks in at AED 75 million. It's the ultimate lifestyle address with amenities like a private cinema, cigar lounge, and wine vaults.
What Is The Most Luxurious Area in Dubai?
Certain neighborhoods stand out even among the elite crowd in a city renowned for luxury like Dubai. Prime waterfront locations and newer master-planned communities typically top the list for Dubai’s most prestigious addresses.
Undoubtedly, Palm Jumeirah is Dubai’s most exclusive and luxurious location. This man-made archipelago shaped like a palm tree is home to billionaires and celebrities in sprawling beachfront villas and penthouses with amazing sea views. Apartments in newer buildings like One at Palm Jumeirah or The Royal Atlantis Resort start from AED 2 million, while lavish signature villas on Frond G sell for upwards of AED 50 million. With white sand beaches, luxury fashion boutiques and A-list restaurants at your doorstep, Palm Jumeirah offers a lifestyle like no other in Dubai.
For a contemporary luxury haven, Downtown Dubai ticks all the boxes. Epic views of the Burj Khalifa, The Dubai Mall on your doorstep, and glitzy bars and restaurants make it a top choice for discerning expat buyers. Along Emaar Boulevard, prestigious addresses like 8 Boulevard Walk, 19 Boulevard Walk, and 24 Boulevard Walk ooze exclusivity with private resident lounges and fitness clubs. Typical prices range from AED 3,500 per sq ft up to AED 6,000 per sq ft.
Mohammed bin Rashid City District One also makes the cut as Dubai’s next-level luxury destination. This nearly 40 million square foot master development by Emaar is billed as the most exclusive neighborhood in the New Dubai area. With lush parks, a massive mall, and an upcoming solar-powered Central Hub tower, District One will be home to about 15,000 ultra-high-net-worth residents upon completion.
Key Factors To Consider When Buying A Luxury Apartment in Dubai
Purchasing property in Dubai gives you a chance to live out your luxury lifestyle dreams. But before committing to a multi-million dirham property, here are crucial factors to weigh:
- Budget - Set your budget cap for the total purchase price plus yearly fees to narrow your search. Luxury apartments span from a “starter” luxury 2-bed for AED 2 million up to a lavish 8-bed penthouse on Palm Jumeirah topping AED 100 million.
- Location - Dubai has over 100 man-made islands and constantly evolving hot spots, so location is key. Target a prime area that suits your lifestyle like Downtown Dubai, Palm Jumeirah, Dubai Marina or Emirates Hills.
- Facilities/Amenities - Prioritize must-have amenities like pools, gyms, spas, clinics, and sports courts. Many luxury buildings also offer private cinemas, fine dining and activity clubs.
- Property Developer - Look for developments by reputable luxury developers like Emaar, Damac and Nakheel who have solid track records.
- Future Supply - Check projections for new luxury developments launching in your target areas to avoid price declines from oversupply.
- Financing - Decide if you’ll pay cash or take advantage of Dubai’s 50% plus mortgage rates for expat home buyers through local banks.
- Return on Investment - The Dubai luxury property market softened in recent years but still offers decent rental yields and capital appreciation potential in prime districts over the long-term.
Pros & Cons of Buying Vs. Renting A Luxury Apartment In Dubai
Like any major financial decision, you’ll want to carefully weigh the pros and cons of buying or renting a luxury apartment in Dubai.
Buying advantages include:
- Building equity over time with the potential for appreciation on your luxury property investment, rather than paying rent
- Getting your ideal layout, appliances, fixtures and home technology customizations
- Avoiding yearly rent increases
- Benefiting from seller upgrades and incentives for off-plan purchases such as free parking/storage spaces
- Developing pride and comfort that comes with home ownership
Renting pros include:
- Testing out different luxury buildings and locations before committing to buy
- Investing your cash elsewhere while paying lower monthly rents than mortgage payments typically
- Staying flexible to relocate as jobs, family needs and preferences change
- Avoiding large down payment requirements, loan interest and property transfer fees
- Dodging long-term responsibility for maintenance and building service charges
- For frequent movers, renting likely makes more sense despite forfeiting potential appreciation. But buyers planning to stay put for 5+ years may reap greater financial benefits by purchasing their luxury dream apartment in Dubai upfront.
Getting Financing For A Luxury Apartment Purchase in Dubai
Thanks to substantial oil revenues and international business incentives, UAE banks offer very attractive mortgage rates for expats and foreign buyers looking to finance an apartment in Dubai. Typical down payment requirements are 20% to 30% of the purchase price.
Popular mortgages for luxury property buyers include:
- Standard Mortgages – Fixed or variable rates from 2% to 6% from leading UAE banks like Emirates NBD and ADCB with repayment periods from 5 to 25 years. Foreign residents can borrow up to 80% of a property’s value.
- Premier Mortgages – Offer better terms and rates for clients with investable assets from AED 3 – 10 million+ at banks like Emirates NBD Skywards, Standard Chartered Priority and CITI Prestige.
- Dubai Mortgage Loans – New mortgages for expat residents launched by the Dubai government available through participating banks for set off-plan developments. Requires only a 10% down payment with a 25-year repayment period and below market rates.
When applying for a mortgage, banks scrutinize your income, job stability, credit score and existing debt obligations. Having all financial statements and paperwork ready smoothes the approval process. Even high net worth buyers should prepare thoroughly before meeting with banks to pre-qualify for luxury home financing.
How To Inspect A Luxury Apartment Before Buying In Dubai
In the rushed Dubai real estate market, thorough due diligence is crucial before signing a property contract. For resale luxury apartments, make several in-depth visits to analyze unit conditions, facilities, neighbourhood convenience and identify any issues early.
Key things to inspect when evaluating a luxury apartment purchase in Dubai:
- All Appliances – Turn on and test all unit appliances and smart home systems to ensure full working order. Open and close cabinetry to check for damage.
- Fixtures & Finishes – Assess the quality and condition of flooring, installed wardrobes, lighting, wall coverings, doors, windows, sanitary ware, kitchen fittings and built-in furnishings.
- Common Areas – Check shared amenities like the lobby, gym, pool deck, gardens and community areas. Interview residents to hear first-hand feedback.
- Building Facade – Scan exterior facades for any apparent structural damage, weathering, water leakage or balcony rail corrosion.
- Views – Evaluate views during day and night from all rooms and balconies which can significantly influence resale value.
Don’t hesitate to bring in professional inspectors to provide an objective analysis and identify underperforming appliances, faulty HVAC systems or structural deficiencies. This upfront investment in due diligence can help avoid post-purchase headaches or buybacks.
Tips For Foreigners Buying Luxury Apartments in Dubai
With global instability and currency declines, Dubai retains its shine as a safe, tax-free haven for ultra high net worth real estate investors. The luxury apartments market stays red hot with prices and rents rising despite abundant new supply.
- Hire a real estate attorney to review all contracts, payment plans and grip your rights during off-plan purchases.
- Engage a reliable property management company to oversee leases, routine maintenance and yearly registrations when your luxury unit sits unoccupied. Expect fees around 5% of annual rental income.
- Research currency restrictions, tax laws and property ownership structures specific to your home country before wiring funds or signing Dubai apartment contracts.
- Act decisively when your dream luxury listing arises - Dubai’s premium units move fast with multiple competing bids common.
- Consider private schools availability/tuition and healthcare plan costs for your family when selecting a luxury apartment neighbourhood.
With the right advisor relationships and market intel, buying a luxury dream home in iconic Dubai could prove a gratifying long-term lifestyle investment for wealthy global property seekers.
