A mansion in Dubai won’t be completed until next year, but it already holds the title of the most expensive house in the emirate.
A mysterious buyer recently dropped 302.5 million dirhams – the equivalent of $82.4 million – for a villa on Dubai’s Palm Jumeirah, a man-made tree-shaped island jutting out into the Persian Gulf.
Although this is Dubai’s most expensive home sale to date, the deal pales in comparison to other trophy properties sold around the world in recent years.
“Years ago I started calling this market a circus show,” said appraiser Jonathan Miller, who has tracked trophy real estate, or homes that sell for $50 million and more, since. 2007.
Homes at this high price point tend to share a few key features, Miller said — uniqueness, privacy, amenities and status. These are usually single-family homes and prices are often independent of the local real estate market.
“This is not a pandemic event,” he said.
The US trophy real estate market is concentrated in three main regions: Manhattan and the Hamptons, Palm Beach County, Florida, and greater Los Angeles, particularly Malibu. Miller said some recent deals have moved beyond those traditional territories and into Laguna Beach, California, Coconut Grove in Miami and Aspen, Colorado.
Trophy transactions are also accelerating, and quickly. When he started tracking the market, Miller was seeing one or two deals over $50 million a year. Now he sees them every two weeks.
This is largely due to the increased wealth of America’s richest 1%, whose wealth grew by $12 trillion during the pandemic to a record high of $45.9 trillion at the end. of last year, according to CNBC.
Real estate is seen as a stable means of preserving capital, driving demand as billionaires seek to safely park their expanding coffers.
“It’s not a dwelling for mere mortals,” Miller said, “It’s a rarefied universe that very few people can partake in.”
Here’s a look at some other recent notable home purchases by the global elite:
$238 million: 220 Central Park South, New York
Hedge fund billionaire Ken Griffin has held the record for the most expensive house ever bought in the United States for more than three years. The Citadel founder paid $238 million in 2019 for the lavishest spread in one of the most lavish towers in Manhattan’s Billionaire’s Row: Vornado Realty Trust’s 220 Central Park South. At this point, the condo is just one part of Griffin’s national real estate portfolio. Including property owned by Citadel, of which Griffin owns approximately 85%, his insatiable appetite for real estate has led him to own more than $1 billion worth of property in Florida alone.
$177M: 27740 Pacific Coast Road, Malibu
The most expensive home ever sold in California sits on seven waterfront acres of Paradise Cove in Malibu. Silicon Valley venture capitalist Marc Andreessen bought the property, which includes a 10,000 square foot mansion, a year ago for $177 million. The billionaire struck a deal with fashion mogul Serge Azria, who paid just $41 million for the estate in 2013. Miller said price hikes like these don’t reflect appreciation, but rather a total reset of the consumer base rating of trophy properties.
$173 million: 2000 South Ocean Boulevard, Manalapan, Florida
Billionaire Oracle co-founder Larry Ellison also has a penchant for trophy properties, including this historic 16-acre estate in Palm Beach County, which he bought from fellow tech billionaire Jim Clark for $173 million. dollars earlier this year. That was nearly double the $94 million Clark had paid a year earlier to acquire the resort, known as “Gemini,” from the Ziff family. Another notable trophy property held by Ellison is the Hawaiian island of Lanai, of which the magnate owns 98%.
$122 million: 3 Carlton Gardens, London
The same year Ken Griffin broke records with his 220 Central Park South penthouse, he was also behind Britain’s most expensive property sale for years. Griffin paid the equivalent of $122 million for the mansion at 3 Carlton Gardens, near Buckingham Palace and St. James’ Park in London. The three-story house, once inhabited by French statesman Charles de Gaulle, includes a swimming pool and a private garden.
$111 million: 15 Shouson Hill Road West, Hong Kong
A six-bedroom mansion in Hong Kong’s exclusive Shouson Hill sold earlier this year for $111 million. The identities of the buyers have not been revealed, but whoever they are are now neighbors of Hong Kong’s wealthiest resident, billionaire business tycoon Li Ka-Shing.