An empty plot of land has sold for a record-breaking $34 million in Dubai. In a mind-blowing deal, it has left professionals in the real estate industry shocked.
The undeveloped property is located on Jumeirah Bay Island. It is a man-made island in Dubai and is considered one of the most elite neighborhoods in the city. The artificial island was made in the shape of a seahorse and is accessible to the mainland by a bridge. There are several superb dining options for residents on the island, as well as the Bvlgari Yacht Club. A limited number of plots are available, which means that the prices are high to live on this luxurious island on the Arabian coast. Per Bloomberg, the 24,500 square foot space sold at 125 million dirhams, around $34 million. The seller of the property made a reported 242% profit on the land. That's one massive return on investment.
The previous owner was reportedly Umar Kamani, the former CEO of the retail company PrettyLittleThing. He purchased the land around two years ago for around $10 million. After leaving the property untouched for two years, the seller decided it was time to find someone else to take over the sandy plot of land. Kamani sold his property to an unnamed buyer, but per Bloomberg, the purchaser doesn't live in the United Arab Emirates but would like to build a vacation home there. Andrew Cummings, head of prime residential at Knight Frank in Dubai, told Bloomberg, "It's 125 million for sand. Everything that's been making the press has predominantly been spectacular villas, it's been incredible penthouses and all this stuff. But this is just a massive record breaker for a land plot." Sellers are in a position of power with only 128 plots offered on Jumeirah Bay Island.
With limited resources available and high demand, it is no wonder that just a plot of undeveloped property could achieve such a price. It seems that Dubai's luxury real estate market will only continue to grow.