Dubai Family Bets on Luxury Property Boom With $1 Billion Towers

Dubai’s Al Sankari family، which operates one of the emirate’s largest fashion and retail firms، is betting on the booming luxury real estate market with homes starting at nearly $11 million.

The $1 billion project — featuring two towers connected by a penthouse — will have 63 homes، each occupying a full floor and with a private pool on the terrace.

The 30،000-square-foot penthouse will have its own lobby and elevator and is expected to fetch more than $100 million، Sankari Properties’ Chief Executive Officer Mark Phoenix said in an interview. The residences will be serviced by InterContinental Hotels Group Plc’s luxury hospitality brand — Regent Hotels & Resorts، according to the developer.

Thriving Market

Some of the world’s wealthiest people have been snapping up real estate in the emirate، drawn by its business-friendly regulations، liberal visa policies and a time zone conducive for trading most markets.

Dubai recorded 436 home sales valued at $10 million or more in the 12 months through June، according to property consultant Knight Frank LLP. There were just 23 such transactions in 2019.

Meanwhile، home prices in the city jumped 24% in the year through June and rents climbed 19%، according to Cushman & Wakefield Core. There are some signs of moderation though، with prices not rising as sharply as last year.

“We’re in the business of high-end luxurious units and in that segment we’re not seeing any saturation،” Phoenix said.

The influx of wealthy new residents has prompted the revival of several long-dormant projects، including an artificial archipelago built in the shape of a world map and the largest of the city’s famous palm-shaped artificial islands.

Dubai officials expect the city’s population to surge to 5.8 million in 2040 from 3.6 million at the end of 2023. “As a development community، we’re only delivering about 30،000 homes a year، which is not enough to keep up with demand،” he said.

Strategy Shift

The Al Sankari family، which bought Gianfranco Ferré in 2011 after the Italian fashion label went bankrupt، operates around 350 shops and has franchise partnerships with brands including Canali and Pierrre Cardin.

The family’s property investments were initially limited to buying hundreds of homes and land plots. But after years of using real estate as a store of value، Sankari Properties was established last year to develop some of its land holdings، including 20 plots in the man-made Palm Jumeirah island.

Currently، the developer has around $2 billion worth of properties under development along with an investment portfolio that includes around 400 completed homes، the CEO said.

Serviced Homes

The Regent Residences Dubai - Sankari Place towers was designed by Foster + Partners and is set to be built on a plot that the family bought in 2018. The towers will overlook the Marasi marina in the Business Bay area of the city، adjacent to Dorchester Collection’s first hotel in Dubai.

Phoenix expects to award a building contract of around $200 million in October. “It’s a pretty strict directive that we don’t need to borrow money for anything،” the CEO said. Buyers must pay half of the price during construction and the remaining after completion.

The client base is mostly from the UK، Eastern Europe، India and the Persian Gulf، he said. Some already have mansions in Dubai but are now opting for the convenience of a home serviced by a hotel group.

“Residents who come for few months a year can walk into their homes without having to call in the cleaners، gardeners، drivers or maintenance people،” he said.