Dubai JLT residential tower claims a first with ‘rare’ alcohol licence

Dubai’s Mercer House is set to become the city’s first residential-only building with an alcohol licence, according to the brokers of the building, Invest Dubai Real Estate (IDRE).

Located in Jumeirah Lakes Towers (JLT), the development features a 45,000 sq. ft. private beach club, which the company says “allows residents to enjoy a resort-style atmosphere with the added benefit of an alcohol licence.”

IDRE says this would be a first for a residential building in Dubai, where only hotels, bars, and restaurants have traditionally secured alcohol licences. 

In Dubai, alcohol can only be consumed in licensed establishments or private settings. Residents need individual licences for private consumption, while visitors can only drink in licensed venues.

A person with knowledge of Mercer House told Gulf Business that the beach club was granted an alcohol licence before planning permission was sought for the rest of the project. The towers were then built around it, and the licence remained.

IDRE says it has secured an “extraordinary” and “rare” approval.

“It represents a slight step change in policy as previously individuals could only really drink alcohol in a restaurant or bar,” Asad Khan, CEO of IDRE, told Gulf Business.

Khan stressed that there is strict criteria for alcohol licensing.

Nevertheless, this could open up opportunities in Dubai’s fast-growing property market and attract more global buyers.

“We have many clients buying from across Europe, mainly from France and Italy,” Khan said.

“Buyers are looking for more and more amenities within their purchase. Gyms and swimming pools are just not enough these days, so developers are having to be more creative and think out of the box, with beach clubs, for example,” he said.

Beyond the beach club

Beyond its beach club with a bar, Mercer House will feature “six to eight premium hospitality venues” within the building, including “upscale” restaurants, cafés, retail shops, a multi-sports complex, skyline pools, fitness studios, and spa rooms.

Apartments will start at £645,000 (Dhs2.9m), while a penthouse in the building is selling for £6m (Dhs27m), according to the developers.

IDRE has been operating since 2003 and its other key developments include Dubai’s City Walk 3. 

Dubai’s real estate sector has been on a tear in recent years as a fast-growing number of residents has resulted in a shortage of supply.

Data from Dubai real estate firm fäm Properties says the emirate witnessed a 36 per cent increase in sales volumes in 2024 and a 27 per cent rise in value compared to the previous record of 133,100 transactions worth Dhs411.1bn in 2023.

Meanwhile, IDRE, in a statement, says residential prices in Dubai are expected to see price hikes of between five and 10 per cent in 2025, pointing to continued strong demand.