Deyaar’s ‘royal palace’ at new Dubai tower comes with Dh90m price tag

Deyaar Development’s plush ‘royal palace’ at the top of the newly unveiled residential tower near Sheikh Zayed Road will be priced between Dh80 million and Dh90 million ($21.78 million and $24.5 million) amid higher demand from buyers, its chief executive has said.

This week, Dubai-listed Deyaar launched 445-metre high Downtown Residences, a 110-floors skyscraper, which is the biggest project the company has launched so far.

“It’s a big space,” Saeed Al Qatami told The National in an interview in Dubai on Wednesday. “We are talking about close to 15,000 square foot in the sky, with swimming pools and other amenities.”

Deyaar plans to begin selling the units to clients next week, with a one-bedroom apartments priced at Dh1.8 million. Penthouses and duplexes will also be up for sale.

The company expects to generate Dh2 billion from the sale of housing units, with construction scheduled to begin by the end of the year, Mr Al Qatami said.

“We have seen a very good [initial] interest. People are eager to know more about the project, about the pricing, about the payment plan," he added.

“We also have a strong channel partners network ... and they are keen to sell it to their clients.”

Apart from Emiratis and residents, the company is also targeting buyers from Europe, China and markets in Asia and beyond. Deyaar expects to sell about 60 per cent of Downtown Residences' 522 units up for grabs this year.

The company will fund the construction of the project through the cash generated from off-plan home sales, Mr Al Qatami said.

"We also have over Dh900 million of [bank] facilities unutilised as of now. So, if required, we will tap some of those facilities," he said. "These are bank loans approved for us ... but we have not utilised."

The property sector in the UAE has been booming on the back of government initiatives such as residency permits for retired and remote workers as well as sustained economic growth that is driven by non-oil sector diversification.

The influx of wealthy people to the Emirates is also supporting the market momentum. Last year, 7,200 millionaires arrived in the UAE, building on an influx of 4,700 in 2023 and 5,200 in 2022, property consultancy Knight Frank said, citing data from Henley & Partners.

The total number of US dollar millionaires in the UAE reached 130,500 at the end of December, making the Emirates the world's 14th-largest wealth market.

Demand for homes continues to remain strong in Dubai as well as across the Emirates as the population is consistently increasing with a large number of people moving to the Emirates to live and work, Mr Al Qatami said.

“People want to relocate from Singapore, the US, UK, Europe as well as from India and Pakistan and some Arab countries as well,” he said.

“People are coming here for different reasons ... [and] they think it's the right place to live. As long as this happens, the real estate sector will continue to be healthy and you will be able to either lease those units or sell them at good rates.”

Prices not expected to fall

Property prices will "stabilise at a certain level" this year and will not fall as demand remains strong, Mr Al Qatami said.

In a recent report, Fitch predicted Dubai property prices to fall by 15 per cent this year on oversupply in the market.

The credit ratings agency expects unit deliveries in this year and next to double compared to 2022 to 2024, “which could cause a price correction”.

Mr Al Qatami said: "Oversupply might happen by the end of next year and you will see that reduction happening." However, it also depends on the population increase and how many more people come to live in Dubai, he added.