Dubai is experiencing an unprecedented boom in luxury residential developments, catering to high-net-worth individuals (HNWIs). These opulent spaces are designed with every imaginable amenity, offering a level of comfort and exclusivity that leaves little reason to venture beyond the property’s bounds.

The Gulf region, particularly the UAE, has become a global luxury hub. Top hospitality brands have flocked to the region, and there’s a huge demand for luxury branded residences. What was once associated with hotel vacations is now a standard for many homeowners.

Dubai has become synonymous with luxury, so it is no surprise that developers have been consistently launching uber luxury branded off-plan projects post-Covid. This indicates that there is an ever-increasing demand for luxury homes offering every conceivable amenity. In some ways, Dubai is setting the standard internationally for what is considered super luxury living.

Arabian Knight spoke to Firas Al Msaddi, CEO of fäm Properties, on the trends shaping the luxury residential market in Dubai.

Excerpts from the interview:

What innovative lifestyle amenities are luxury developers offering to enhance residents’ experiences?

Traditionally, golf communities and waterfront beach access were the mainstay of luxury developments in the Gulf, but post-Covid we have seen a big rise in luxury developments, each offering something new. Private pools, once reserved for penthouses, are now a feature of every unit in some developments. Others include wellness spas, business centres, fine dining, nature reserves, sports facilities and full floor residences. Even the functional design of luxury residences is now on par with New York and London, with apartments featuring show kitchens and chef kitchens to meet demand.

This year, HNWIs (high-net-worth individuals) from around the world are forecast to invest more than AED16 billion ($4.36 billion) in Dubai’s property market. Attractions include a AED7 billion collection of ultra-luxury properties gaining recognition as the ‘Central Downtown Villas of Dubai’, now transforming one of the city’s prime residential neighbourhoods, the Al Wasl District. This includes our AED 1 billion Nordic by fäm development, consisting of 17 villas and mansions in the heart of the city. These villas boast private cinemas, spas, gym, indoor and outdoor gardens for optimal entertainment and relaxation.

Which personalised services are now offered to residents within luxury developments?

Traditionally, the luxury services residences were known for providing valet parking, concierge services and general hotel features found in major international cities. Now we see a growing expectation for things like personal shoppers, personal trainers, tailored wellness experiences, and gourmet food and beverage in-house from internationally renowned chefs. Dubai attracts many part-time residents based overseas. They will pay for any personalised service that adds to their living experience here, especially those which are hard to find elsewhere.

How do developers tailor these services aimed to satisfy the demands of affluent clients?

Developers and brand partners undertake extensive research to learn what is expected of them, what works in other countries, what works in the Gulf, and what won’t. They are renowned in this region for going the extra mile. In other countries, extravagant luxury developments are often shelved due to the perceived risk of long-term financial failure. In the Gulf however, the bigger the better, the more luxurious the better, and it pays off handsomely, with affluent residents and visitors alike signing up for bespoke lifestyle amenities catering to their every need.

In what ways do developers create immersive environments within luxury developments to ensure a unique and exclusive experience for residents?

For many developers, providing the ultimate luxury living experience now means ensuring residents don’t have to leave their community because everything they need is one quick call away, or available through an app.

Developments are now designed based on lifestyle and quality of living experience, with the goal of creating an immersive environment which residents leave only if they want to. Soon enough we will see a community or development that has everything: beach living, a marina, golf, schools, medical, retail, hotel, dining, sports and recreation, family and pet-friendly facilities. While many developments and communities have a lot of these facilities, we have yet to see the ultimate gated community that has it all. 

What are some good recent examples of innovative tech solutions that have been used?

Bugatti recently partnered with Binghatti to create a super luxury living concept focused on the supercar brand. This features individual private car lifts to higher floors and penthouses, so residents can display luxury cars in their apartments.

Smart home technology and home automation are fast becoming a minimum standard. We also have advanced home security technology, although Dubai’s low crime rate reduces the focus on these features. Highly important, even in the super luxury sector, is sustainable living and the development of more green technology. Intelligent sensor lighting, central temperature-controlled systems, and harnessing sunlight through solar panels, are key for frequent travellers who want their homes to remain in pristine condition, especially in the extreme summer heat.

How are luxury developments integrating sustainability and wellness features?

Most developers of luxury villa communities are incorporating as much greenery, biodiversity and sustainable features as possible. In line with the government of Dubai plans, there’s a huge focus on urban living, and creating urban oasis-type communities which maximise green spaces and include lagoons. Some developers are even creating nature reserves. There’s an acute awareness that a children’s playground or a community pool is no longer sufficient. Residents want to experience nature which enhances wellness and wellbeing. Developers are also concentrating on healthy lifestyle choices, and providing extensive sports and exercise facilities. Many luxury projects follow the lead of Masdar City in Abu Dhabi, with an emphasis on energy and water sustainability through higher grade construction materials and use of smart technology.

How does this contribute to the overall resident experience?

A development, whether a building or a community, is no longer merely a residential space. It has to be a lifestyle space, and the quality of the development is no longer judged on traditional factors such as location, square footage and view, but on the living experience it provides. Dubai is renowned for its luxurious lifestyle, and every developer is trying to incorporate the maximum lifestyle experience in their developments. At a macro level, this enhances all developments, and the competition between developers means that there are ever increasing standards in the quality of living experience.

What are the key challenges and opportunities for creating experiential luxury properties in the GCC real estate market?

The biggest test for developers is finding something new, a brand that isn’t already here to partner with, or a lifestyle USP that hasn’t been tapped into yet. Marketing of these developments needs to attract the right buyers. Another challenge is ensuring these luxury experiences are sustainable in the long run, and that service charges cover costs. Maintenance is a significant cost of any development, and some of the extreme luxury experiences might be hard to maintain, while it could be difficult to justify the running costs, especially for services that are not frequently used. In terms of opportunities, the UAE is one of the safest places on Earth for any high-net-worth individual. So, developers focused on luxury know there will be consistent demand for the latest luxury experience.

* Firas Al Msaddi is the Chief Executive Officer of fäm Properties, the largest real estate brokerage firm in the UAE. Since founding the company in 2009, in the midst of the global economic crisis, he has developed it into an innovative, technology-driven agency which today employs more than 700 staff. fäm Properties exclusively manages a real estate investment portfolio of over AED15 billion in Dubai, with 3.7 million square feet of managed properties, and operates 32,200 square feet of functional office spaces. As Executive Chairman of the fäm Group, Firas also runs fäm Real Estate Development Management, fäm Interior Design, fäm Holiday Homes and fäm Mortgages. In addition, he manages an investment portfolio for ultra-high-net worth individuals in the GCC region.