Interview: MERED’s Ramil Guliev on trends driving Dubai’s ultra-luxe property market

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MERED has just entered the market, tell us more about the brand and which market segments you will target.

MERED is an international real estate developer, with a focus on ultra-luxury developments. Our vision extends beyond constructing buildings; we aim to create timeless landmarks that will serve generations. With a fusion of conceptual design and contemporary urban trends, our brand provides residents with unmatched quality, service, and exceptional living experiences.

We’ve chosen Dubai Internet City for our new flagship project, an emerging residential community for high-end developments and an attractive opportunity for investors today. In alignment with the Dubai 2040 Urban Master Plan, we plan to drive the innovation of the real estate industry in the country.

What are the prevailing trends in the ultra-luxury real estate market?

Demand is simply outpacing supply. A recent Knight Frank report indicated that 4,500 millionaires are expected to move to Dubai this year, suggesting that prices and demand will grow further.

Beyond financials, there’s an emphasis on health and wellness, private spaces, and smart homes with in-home automation. Sustainability is a cornerstone, with investors preferring homes that prioritise eco-conscious builds. While privacy remains important, there is also a trend toward community spaces within luxury developments, indicating a desire for both exclusivity and connection.

How do you plan to differentiate yourself among ultra-luxury real estate developers?

Breaking into a competitive market demands a clear differentiation strategy. Some developers emphasise amenities and technology like state-of-the-art wellness facilities, smart home automation, and advanced concierge services.

At MERED, our focus is on our international team of world-class, experienced craftsmen, property development and construction experts. For any company to differentiate itself in a world-leading market like Dubai, collaborating with high-end brands for design and interiors can also help boost customer interest.

What properties are ultra-luxury buyers seeking? Is this trend temporary or lasting?

The ultra-luxury segment of the market has witnessed a shift in preferences among high-net-worth buyers. Dubai is the world’s number one luxury property market, with Tokyo and Manila rising to meet it, while cities such as Hong Kong and New York saw a dip in their growth. Discerning clientele who has always refocused their attention on prime locations are doing so once again. In Dubai, there is a clear trajectory of sustained growth (luxury home prices soared by 225 per cent since the pandemic).

A pronounced trend is the emphasis on privacy and security. Wealthy buyers prefer secluded properties, even if located within a fast-paced city, such as penthouses with private entrances and elevators, or islands and desert retreats in Dubai.

What’s the current state of Dubai’s luxury apartment market? How does it affect the wider industry and are there growth expectations?

Dubai’s early 2000s real estate boom was apartment-focused with Dubai Marina’s 200 towers leading. Recent evaluations show ready apartment prices average at Dhs1,140 per square foot, marking a 2.7 per cent year-on-year (YoY) growth. Over the past decade, there’s an accumulated growth of 7.2 per cent. In contrast, off-plan apartments, at Dhs1,819 per square foot rose by 5.4 per cent YoY with 28 per cent growth since 2014 indicating a trend of buyers leaning towards further investment.

Figures from the Dubai Land Department show there’s been a striking 63 per cent YoY increase in apartment sales, totalling 46,166 units and Dhs92.5bn in value in H1 2023. JVC has  7,810 apartments sold at Dhs6.2bn, and  Dubai Marina, 6,500 units, reached Dhs24.5bn, indicating a higher unit price, second only to Palm Jumeirah.

The super luxury segment in H1 2023 saw the top five apartments priced between Dhs78m and Dgs410m, predominantly in Dubai Marina. Luxury apartment prices increased quarterly, climaxing in August with Jumeirah Marsa Al Arab sale at Dhs420m.

What should buyers prioritise when looking for a luxury property?

For investors entering the luxury real estate apartment market, location and neighbourhood are crucial. Within luxury sectors, certain areas command more prestige, influenced by proximity to landmarks and the surrounding properties.

Quality of construction is next. Luxury isn’t just aesthetics. Investors must ensure a property is built with the highest quality materials and construction standards. Modern amenities are appealing, but their relevance and functionality should be gauged.  Investors should study historical price trends and be aware of any forthcoming developments impacting property values.

A super luxury apartment can offer a good return on investment through timely re-sale. Given the segment’s rise in Dubai, this expectation is justified.

What can property buyers anticipate from the MERED brand?

Superior construction, design by legendary names, commitment to investors’ needs and state-of-the-art amenities. Our projects are in Dubai’s most sought-after areas, a rarity in today’s market.