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Dubai Villa Sells for AED100 million

The emirate logged one of its most expensive deals amid slow luxury market conditions

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The 42,000-square-foot villa is in the upscale community of Emirates Hills—a knock-off of Los Angeles’s posh Beverly Hills built around The Address Montgomerie Golf Club.

David Cannon / Getty Images
The 42,000-square-foot villa is in the upscale community of Emirates Hills—a knock-off of Los Angeles’s posh Beverly Hills built around The Address Montgomerie Golf Club.
David Cannon / Getty Images

One of the most expensive residential real estate deals in Dubai has closed for AED100 million (US$27.226 million)—a sign, perhaps, that the emirate’s luxury market is perking up after years of price declines and stagnation.

The sale of the 42,000-square-foot villa marks what brokers called the most expensive transaction in the upscale community of Emirates Hills—a knock-off of Los Angeles’s posh Beverly Hills built around The Address Montgomerie Golf Club.

More:Dubai’s Prime Real Estate Picks Up in the Second Quarter

The villa has eight bedrooms, each with their own bathroom, high-quality finishes and a full team of managers to run the day-to-day maintenance on the property, according to Gulf Sotheby’s International Realty and Belleview Real Estate Brokers, who co-listed the property.

The brokerages attributed the record-breaking sale amid slow market conditions to patience and expertise. The home took 18 months to sell.  

"We understand the real estate market is cyclical," Leigh Williamson an associate at the Sotheby’s International Realty affiliate, said in a statement. But, she noted "there are buyers in the market who look for properties of this prominence."

To sell in Dubai’s cooled market, appropriate pricing is especially important, Ms. Williamson said.

"Sellers need to remain realistic in terms of pricing and timing," she said. "Properties like this villa rarely come on the market at the right time. When they do come on the market, sellers must be prepared to work with the agent to price the property at a level that the market will bear and invest the time to find the right buyer."

More:Check Out News from Dubai's Real Estate Market on Mansion Global

Dubai saw its real estate market contract dramatically in mid-2014, around the time that crude oil prices plummeted, hitting a key source of wealth for the region. Real estate prices in the emirate plunged and have stagnated ever since.

In a spate of second-quarter reports, however, market analysts said the market has officially bottomed out and forecasted a turnaround, with prices picking up ever so slightly by the end of 2017.