These Days, The UAE’s Growing Base Of Rich Inhabitants Is Expanding Beyond Housing.
The UAE has long been the centre of Middle Eastern shopping, but today’s “shoppers” are just as likely to buy a private aircraft or a luxury boat there. To go along with the residences that are often purchased for between Dh100 million and Dh600 million.
Since 2021, the number of ultra-wealthy people living in the UAE has significantly increased. “These people require their boats and planes along with their Rolls-Royces, Bentleys, and Ferraris to fill their garages,” remarked an estate agent specialised in luxury homes. “This is demonstrated by the number of inquiries that are still pouring in for properties near the sea or, if feasible, marinas with room for boat parking.
“These days, a Dh100 million house sale is considered as a standard deal — the ‘new normal’ is having developers come up with Dh200 million or more homes and simply finding a buyer to take possession when the homes are finished in 2-3 years.”
As a result, it makes sense that their purchasing would also include other categories—jets and yachts, to name just two—and that is precisely what companies are attempting to offer.
Boat Exhibition in Dubai International 2
In berths in Dubai Harbour, some of the yachts that are on display to attract potential buyers.
1. Purchasing a New Boat
The Dubai International Motor Show, which began on March 1 at Dubai Harbour, demonstrates the trend of an expanding resident base of the super-rich. Modern, luxurious boats with price tags in the millions of dollars are moored in the berths. The word “Sold” is already written on some or several of these vessels.
During DIBS, many new businesses are displaying their boats, and according to industry sources, the event in Dubai has grown to be just as significant as those hosted in Cannes or other prestigious marinas in Europe or the US.
According to Mohammed Hussein AlShaali, chairperson of Gulf Craft, “These days, a lot of the demand for luxury boats is as likely to come from within the Gulf as from Europe or the US. There are no pre-owned boats on exhibit during DIBS 2023; everything is brand new.
2. Private Jets
Private aircraft sales in the area are also at an all-time high thanks to first-time customers. Particularly from the UAE, Saudi Arabia, and Qatar. Mark Abbott, CEO of Vertis Aviation Aircraft Trade in Dubai, declared that demand had far outpaced supply. Aircraft brokers have done incredibly well as a result of the severe inventory shortfall during the previous two years.
We made the decision to combine brokerage with our current charter business. Because we were encountering a new breed of purchasers. That required opening a business in Dubai.
In recent months, a wealth boom, a booming demand for leisure activities, and the relaxation of pandemic travel restrictions have pushed the business aviation industry. Many people who are interested in private planes, according to Abbott, are transitioning from renting one to actually buying one.
It is no longer sufficient for many inhabitants of the UAE and the Gulf to charter a plane. The current fashion is to pay in whole.
What Are The Prices Of These Jets?
A private aircraft may cost anywhere from $2 million to over $100 million. Depending on its size, range, model, and amenities. A pre-owned Learjet 45 or a Cessna Citation CJ3+ plus can cost anywhere between $3 million and $4 million, according to Abbott. A mid-range Challenger 300 or 350 can cost between $10 million and $20 million. While an ultra-long range aircraft can cost between $25 million and $75 million.
The usage of private aircraft climbed to a record high last year. 3.3 million Business jet takeoffs were reported in 2021. The most for a single year and 7% higher than the previous peak in 2019. Aviation data research company Wingx documented these takeoffs.
More Purchasers Are Awaiting
According to research, the area is home to at least 300 billionaires. With more than 224,000 millionaires, Saudi Arabia leads the Middle East in this category. According to Abbott, there are now slightly under 800 business jets in the area. Which provides a solid foundation from which to expand. Especially when you take into account the newcomers who are establishing residences in the UAE and abroad.
Only 8 new villas are anticipated in the city’s most desirable neighborhoods until 2025. Dubai’s luxury residential market is still significantly undersupplied and more affordable than its international counterparts, according to Faisal Durrani, Partner and Head of Middle East Research at the real estate consultancy Knight Frank.
“In fact, a $1 million property in one of Dubai’s upscale neighborhoods has around 1,130 square feet of room. Which is almost five times larger than a comparable home in Hong Kong and three times larger than one in London or Singapore. These elements have boosted corporate and economic confidence, which has in turn boosted demand for luxury residences.