Why Wealthy Homebuyers Are Flocking to Puerto Rico
Favourable tax policies, warm weather and a shift to remote work has transformed the island into a full-time destination
10 min
In the weeks before real-estate agent Wanda Ithier’s client bought a $40 million house on the Caribbean island of Puerto Rico in March 2022, the sale price was a moving target.
The 13,560-square-foot custom home—located in the Dorado Beach Resort, about 25 miles west of Puerto Rico’s 500-year-old capital city of San Juan—first hit the market for $29.95 million in November 2021, according to Zillow. Amid a market run-up, the price jumped to $34.5 million a few weeks later, and Ithier said it rose higher still during the negotiations that followed. She said her client ultimately agreed to pay $40 million the following March, more than 33% above the original asking price, setting a record for the island.
The deal reflects the fevered pitch of Puerto Rico’s luxury housing market, where favourable tax policies and a Covid era second-home frenzy have opened the floodgates for wealthy home buyers. The buyer of the $40 million home was Wright Wesley Thurston, a crypto entrepreneur, and the seller was investor Jason Moore, records show. “He wanted it,” said Ithier, who represented Thurston with Betty Martinez of Betty Martinez Real Estate. “It was a unique property.” Set on about 1.4 acres, the house has an interior courtyard, an 85-foot-long pool and a 30,000-gallon koi pond, according to marketing materials. Neither Thurston nor Moore responded to requests for comment.
Despite a brief market correction at the end of 2022, Puerto Rico’s luxury housing market is booming, and investors and developers are rushing to capitalise on the desire for high-end homes. Located about 2½ hours southeast of Miami by air, Puerto Rico is known for year-round warm weather and historic areas like Old San Juan, along with beaches, mountains and rainforests. For years, the U.S. territory has also grappled with population decline, a weak economy and infrastructure woes. But wealthy home buyers have been flocking to the island since Covid, boosting sales volume and prices, local real-estate agents said.
In Dorado Beach, a wealthy enclave on the north shore of the island, the median sale price for homes priced above $1 million nearly doubled to $6.2 million in 2022, up from $3.4 million in 2021, according to Sotheby’s International Realty. Prices are also up in other areas, including Condado, an oceanfront neighbourhood of San Juan, Bahia Beach, on the island’s northeast coast, and Palmas del Mar in the southeast.
Local real-estate agents said much of the market surge is rooted in tax incentives, known as Act 60, that are available to individuals and corporations that relocate to Puerto Rico. Individuals who make their primary residence in Puerto Rico by spending at least 183 days a year on the island don’t pay federal income taxes on income sourced in Puerto Rico, according to the tax code. Since 2019, there has also been a requirement that anyone receiving the tax incentives must own a home on the island, which local agents said caused the buyer pool to swell. During Covid, Puerto Rico’s warm climate coupled with the adoption of remote work and Puerto Rico’s low cost of living accelerated the trend of wealthy individuals buying primary and vacation homes on the island.
At the top end of the market, the island’s real-estate growth spurt has played out in a series of mega deals, including Thurston’s $40 million purchase. In December 2022, hedge-funder Glen Scheinberg paid $37 million for a 10,250-square-foot home in the East Beach area of Dorado Beach Resort, two years after the home sold for $18.995 million, according to the local MLS and property records. It couldn’t be determined if Thurston or Scheinberg have been granted the tax-exempt status. Scheinberg declined to comment.
In March 2021, Sean Lonergan, founder and CEO of PruGen Pharmaceuticals, and his wife, Michelle Lonergan, sold a custom-built home in East Beach for $30 million, according to the local MLS. The buyer was Dan Morehead, founder of Pantera Capital, according to records and people familiar with the deal. It couldn’t be determined if Morehead has been granted the tax-exempt status. He and the Lonergans—who did claim the benefit, records show—didn’t respond to requests for comment.
The deals aren’t an anomaly, said Oriana Juvelier of Sotheby’s International Realty, who was involved in the $18.995 million sale in 2020. She said that following Hurricane Maria in 2017, opportunistic investors snapped up distressed properties in Puerto Rico. Momentum in the housing market was building when Covid hit, and the luxury sector “just exploded.”
Tax incentives introduced by Puerto Rico in 2012 were designed to spur economic growth. With a population of approximately 3.2 million as of July 2022, some 40% of Puerto Rico’s residents live in poverty and the median income is just under $22,000, according to the U.S. Census Bureau. Eleven years ago when the incentives were approved, 44.9% of Puerto Rico’s residents lived in poverty, when the median household income was $19,429, census data show.
Under Act 60, the name given to the incentive programs in 2019, eligible businesses pay a 4% corporate tax on services exported from Puerto Rico, said Raul Vidal y Sepulveda, an attorney who advises individuals and companies on tax incentives. Companies with revenue of $3 million or more must employ at least one full-time employee locally, he said. Individuals granted Act 60 benefits don’t pay federal income tax on income sourced in Puerto Rico and they also are exempt from paying Puerto Rico income taxes on interest, dividend income and certain capital gains. To qualify, individuals must live primarily in Puerto Rico, they must own a home there within two years of being granted tax-exempt status, and they must annually donate at least $10,000 to local charity.
After several years of steady growth, the number of individuals granted tax-exempt status under Act 60 jumped from 514 in 2019 to 714 in 2020 and 1,238 in 2021, according to data from Puerto Rico’s Department of Economic Development and Commerce. The number dropped to 721 in 2022, which Vidal y Sepulveda attributes largely to a crash in the crypto market. Cryto entrepreneurs and investors, he said, flocked to the island for Act 60 capital gains benefits when the virtual currency was hitting its peak.
Peter Bazeli, a principal at Weitzman, a residential and hospitality development consulting firm, said Puerto Rico’s tax benefits transformed it from a place people wanted to visit to a destination for wealthy home buyers with the flexibility to move their businesses, including hedge-funders, crypto investors, and other entrepreneurs. He said the movement began in 2012 and was a “slow burn” that skyrocketed in 2020 thanks to Covid and massive wealth generated in the stock market.
“Part of the appeal was you could move to Puerto Rico, save on taxes, have an incredible lifestyle and generally spend less than what you’d spend on a comparable place in Miami or other resort destinations,” he said. “It created this almost club of high-net worth households that have chosen to establish residence in Puerto Rico.”
Crypto investor Michael Terpin was an early mover. He relocated to Puerto Rico from Nevada in 2016 to take advantage of the tax benefits. “I look at this as a 20-year play,” he said. “How much in taxes will I save over 20 years?”
Terpin said since he arrived, a crypto community has formed in Puerto Rico, and he has more friends there than he does in Nevada or Florida, where he also owns homes. In Puerto Rico, he’s fixed up two properties, a condo in San Juan’s Miramar neighbourhood and a house in the Beverly Hills district of Guaynabo, a suburb of San Juan. He said he paid $280,000 for the condo, which is now worth $2.5 million. He paid $700,000 for the house, which is now worth $6 million to $7 million.
Christian Mickelsen, a business coach, author and investor who moved to Puerto Rico from San Diego, Calif., in 2018, didn’t expect to like living on the island as much as he does. He came for the tax benefits, but said he found ample networking and business opportunities along with tropical weather, restaurants, nightlife and water sports. He lives in the Dorado Beach Resort, where he drives around on a golf cart and can order room service.
“Living in California, and paying more than half the money I make in taxes, that was pretty rough,” he said.
Mickelsen also began investing in real estate as the housing market shot up. After buying a five-bedroom home for $3.375 million in 2018, he sold the property for $5 million in 2020. He later purchased two three-bedroom condos in Dorado Beach for $3.6 million and $6.9 million. Both are on the market, for $10.997 million and $15.997 million, respectively, and Mickelsen said he’ll keep whichever doesn’t sell first.
Other aspirational sellers are testing the waters. In February, entrepreneur Christopher Harding listed a 5,600-square-foot house at the Dorado Beach Ritz-Carlton Reserve for $44.95 million. Harding bought the four-bedroom home, with covered patios and an outdoor kitchen, for $10 million in 2020, records show.
Tip Powers, who sold a real-estate company in Virginia and moved full time to Puerto Rico in 2015, has listed a newly-built home in the Dorado Beach Resort for $35.9 million. Powers said he bought the property for $1.6 million in 2018 and demolished an existing home on the site before building a roughly 14,700-square-foot house for himself. Construction took several years and was complete in 2022, by which time Powers said two of his children graduated college and no longer lived at home and two others were halfway done with high school in Puerto Rico. Powers, who lives near Condado, said he plans to stay in Puerto Rico but it no longer makes sense to have a large home in the Dorado area.
Based on other homes on the market, Powers said his home, which has panoramic views of the ocean, is a relative bargain. He also said the appetite for finished homes in Puerto Rico is high. “In this price range, they don’t want a fixer-upper,” he said.
Following a long development drought, Juvelier of Sotheby’s said local builders and some from the mainland U.S. are racing to construct new homes, which are selling at price points Puerto Rico never experienced previously. In San Juan, for example, she estimated there are more than a dozen condominium projects in various stages of development. “The last construction boom here was in the 1970s and 1980s and the real estate reflects that,” she said.
Blanca Hebé López-Pierluisi of Corcoran Puerto Rico said she is marketing several new condos, including the Vanderbilt Residences in San Juan’s Condado neighborhood. The 66-unit oceanfront condominium has 25,000 square feet of amenity space and is being developed by Paulson & Co., hedge-funder John Paulson’s family office.
Prices at the 250-foot tower start at $4 million for residences with city views and $6.2 million for homes with ocean views, López-Pierluisi said, and a roughly 7,380-square-foot oceanfront residence with a nearly 4,200-square-foot terrace is available for $12.5 million. She said the building is over 55% committed without advertising beyond a whisper campaign to friends and family. Closings are set to begin in December 2024.
López-Pierluisi said she is marketing The Icon, also in Condado, a 30-unit boutique condominium with prices ranging from $1.2 million for a two-bedroom to $8 million for a four-bedroom penthouse. The developer is RioBlanco Capital, a Puerto Rico-based private-equity firm.
Local real-estate agents said the priciest homes are still found in the Dorado Beach Resort, a 1,400-acre master-planned community on the north side of the island that was originally developed by Laurance Rockefeller, son of John D. Rockefeller Jr. Laurance Rockefeller was an active conservationist who purchased land throughout the U.S. Virgin Islands. In the 1950s, he bought about 5,000 acres on St. John, and turned it over to the U.S. government to create a national park, according to the National Park Service.
In Puerto Rico, Rockefeller’s resort opened in 1958, according to the resort’s website. The community is anchored by a Ritz-Carlton Reserve hotel that opened in 2012, and it has a clubhouse, multiple golf courses, nature trails, restaurants and Ritz-branded residences.
Sales within the resort jumped from $334 million in 2020 to $568 million in 2021 before falling to $497 million in 2022, said Federico Stubbe, Jr., CEO of PRISA Group, the resort’s co-owner and developer. Despite the 2022 dip, he said PRISA has a robust list of people waiting for new homes in development. PRISA has 29 units for sale out of 169 homes in various stages of construction and development. One project in the pipeline is La Cala, a collection of 14 single-family beachfront homes with prices starting around $30 million. PRISA’s West Point III condominium is a new Ritz-branded building with 10 units, priced between $9 million and $18 million. Stubbe said PRISA launched sales in March and currently has five units under contract.
“I wouldn’t say it’s happened overnight,” said Stubbe, whose family has been developing in Puerto Rico for over 35 years. “The pandemic certainly fast-tracked it a little bit. But this has been a long time coming.”
Still, luxury home-building comes with challenges on an island where construction materials must be imported and labor is in short supply. The island’s electrical system was decimated in Hurricane Maria in 2017 and despite the privatisation of the power grid, there have been persistent outages.
Stubbe said PRISA has invested heavily in infrastructure in and around the resort, including a 107-bed hospital that opened last year as well as backup generators and a water system to compensate for the island’s inconsistent utilities. Luxury homes are generally being built today like bunkers with hurricane-rated windows, generators and cisterns.
Nonetheless, the contrast between the have and have-nots and the influx of wealthy newcomers has fostered resentment among locals, especially those who oppose the tax break, said Nicole Alvarez, an organiser of Abolish Act 60, a grass-roots campaign. Alvarez said the tax break inherently penalises hardworking Puerto Ricans. “While they get infinite tax breaks, we’re handed the shorter end of the stick,” she said, adding that few individuals who relocate to Puerto Rico and claim Act 60 benefits hire local employees.
State Sen. María de Lourdes Santiago Negrón, who proposed legislation in 2021 to repeal the tax incentive for individuals, said the policy has led to gentrification in Puerto Rico. One example is in Puerta de Tierra in San Juan, where investors have purchased about 30 buildings, she said. “It has become an Airbnb corridor,” she said. Santiago Negrón said the benefits of the tax incentive don’t outweigh the negatives. “Some things you just can’t put a price on, like the disappearance of decent housing for Puerto Ricans,” she said.
Mickelsen, the business coach and author, said when he first moved to Puerto Rico, he was worried about locals resenting his presence, but said his fears were unfounded among those he’s met. “Most people are really friendly,” he said.
In recent months, local real-estate agents said the pace of deals has slowed compared with 2022 not only because of economic problems, including interest rates, inflation, stock volatility and lower crypto values, but also because there is a lack of inventory. Meanwhile, agents say the appetite for luxury homes is still strong.
“We’re catching up to demand,” said Stubbe, who said there has been no slowdown with regard to new home sales.
López-Pierluisi of Corcoran said the spring market is stronger than she anticipated, likely because many people who moved to Puerto Rico to take advantage of the tax incentives are coming up on the deadline to purchase real estate.
Despite fluctuations in the market for properties between $2 million to $8 million, there is scant inventory for ultraluxury homes, said real-estate agent Karla Barrera-Morstad of Island&Key, the listing agent for the $40 million home last year. “There’s still a scarcity of big turn-key new construction homes,” she said. “When you start talking about homes with over 10,000 square feet or an ocean view, there’s really not much.”
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Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Marcus has over 20 years of experience in sales strategies and market analysis
2 min
The Metropolitan Group has appointed Marcus Andersson as the new head of Penthouse.ae, a Dubai-based full-service real estate agency specializing in serving the needs of Ultra High Net Worth Individuals (UHNWIs).
With his extensive experience and proven track record in the international real estate market, Marcus will play a pivotal role in driving the growth of Penthouse.ae and strengthening its position as a leader in Dubai’s super-luxury real estate sector.
Marcus has over 20 years of experience in sales strategies and market analysis, having worked across four countries. His entrepreneurial spirit and successful ventures, including the establishment of three companies focused on real estate investments, have resulted in impressive sales exceeding USD 1 billion.
“We are excited to have Marcus take the lead at Penthouse.ae as we continue to expand our footprint in the super luxury real estate sector in the UAE,” said Nikita Kuznetsov, CEO of Metropolitan Group. “His deep understanding of the real estate market, coupled with his passion for excellence will be invaluable in driving Penthouse.ae’s continued success. As Dubai’s super-luxury real estate market continues to flourish, Marcus’s expertise will be instrumental in meeting the evolving demands of our discerning clientele.”
Commenting on his appointment, Marcus Andersson said, “I am excited to lead our exceptional team in this vibrant market. Dubai’s super-luxury real estate sector is witnessing remarkable growth, and I look forward to leveraging my expertise to unlock new opportunities for our clients. Together, we will elevate Penthouse.ae’s status as a premier player in the super-luxury segment.”
Under Marcus’s leadership, Penthouse.ae will continue to offer a curated portfolio of luxury properties, including penthouses, villas and mansions, located in the most prestigious neighborhoods of Dubai.
Marcus’ appointment comes at a time of significant growth for Dubai’s super-luxury real estate sector. The city’s strong economy, strategic location and world-class lifestyle offerings have made it a highly sought-after destination for HNWI’s and investors. Penthouse.ae, with its focus on exclusive properties and exceptional services, is well-positioned to capitalize on this thriving market.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
The project blends luxury living with smart investment opportunities.
2 min
Jad Global Real Estate Development has unveiled its new project, “171 Garden Heights,” marking the groundbreaking of a development valued at AED 250 million. Positioned within the Meraas-led Jumeirah Garden City, the project comprises 171 fully furnished residential units, offering studios, as well as one- and two-bedroom apartments.
“171 Garden Heights” seamlessly merges luxury living with sound investment prospects, raising the bar for sophisticated urban lifestyles in Dubai. Its strategic location ensures easy access to key destinations such as Sheikh Zayed Road, Dubai Exhibition Centre, DIFC, Emirates Towers, Downtown Dubai, City Walk, and Jumeirah.
This project marks the official sales launch and signifies a new milestone in Jad Global’s development journey. The company plans to launch additional projects in Jumeirah Garden City over the coming months, with total investments exceeding AED 1 billion.
The project offers a suite of premium amenities designed to elevate the resident experience, including an infinity pool, a spacious social clubhouse, a fully equipped fitness center with state-of-the-art facilities, and electric vehicle charging stations.
Jumeirah Garden City’s strategic location, bolstered by modern infrastructure and a planned metro station, ensures it remains a top destination for lucrative real estate investments and high-quality living.
Commenting on the occasion, Mohammed Al Sheikh, Co-Founder of Jad Global, said, “Our team has successfully developed numerous landmark projects across Dubai, cementing the city’s reputation as a global hub for luxury real estate. Our extensive experience in the sector allows us to deliver iconic projects that reflect Dubai’s spirit of innovation and ambition.”
He added, “171 Garden Heights represents our renewed commitment to creating vibrant communities that align with Dubai’s vision of a sustainable and forward-thinking future. This project aims to surpass expectations and bring additional value to Dubai’s dynamic real estate market.”
All units in “171 Garden Heights” come fully furnished with exquisite designs, providing residents with an unparalleled living experience. The project offers an ideal opportunity for both long-term residence and short-term holiday rentals, delivering attractive investment prospects with flexible leasing options and high returns.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Interior designer Thomas Hamel on where it goes wrong in so many homes.
The capital’s real estate market is benefiting from various economic and demographic factors that are shaping its growth trajectory.
3 min
Abu Dhabi’s real estate market continues to demonstrate resilience, with both affordable and luxury property segments performing well throughout the third quarter of 2024. According to the latest market report by Bayut, the UAE’s leading property portal, the capital’s real estate market is benefiting from various economic and demographic factors that are shaping its growth trajectory.
Trends in Property Purchases
Among those seeking affordable apartments, Al Reef, Al Ghadeer, and Masdar City emerged as the top locations during Q3 2024. Buyers have been particularly drawn to these areas due to their strategic locations and competitive pricing, offering value-driven investment opportunities.
For those in the market for luxury apartments, Al Reem Island, Al Raha Beach, and Yas Island have remained prominent choices. These areas are known for their upscale living environments, premium amenities, and proximity to some of Abu Dhabi’s key attractions. Saadiyat Island recorded the highest price increase for luxury apartments, with prices per square foot rising by up to 8%, driven by sustained demand.
In the villa market, Al Reef, Khalifa City, and Al Shamkha attracted the most attention in the affordable segment, with prices seeing steady growth. In the luxury villa segment, Yas Island, Al Raha Gardens, and Saadiyat Island led the market, benefiting from the allure of exclusive living spaces near Abu Dhabi’s iconic landmarks. Yas Island villas, in particular, saw price increases of nearly 5%, reflecting the area’s desirability.
Return on Investment (ROI) Trends
For property investors, ROI remains a critical consideration, and Bayut’s data points to strong yields across Abu Dhabi. Al Reef and Al Ghadeer offer attractive returns of 8.86% and 8.20% respectively for affordable apartments, while premium properties on Yas Island and Al Reem Island show returns of up to 7.22%. The affordable villa segment, particularly in Hydra Village and Abu Dhabi Gate City, continues to yield solid returns, with rates reaching 8.06%.
In the luxury villa market, Yas Island once again tops the charts with an ROI of 6.50%, closely followed by Al Raha Gardens at 6.42%.
Popular Off-Plan Projects
The off-plan property market in Abu Dhabi is also gaining momentum, with projects catering to both affordable and luxury buyers. For affordable apartments, Royal Park in Masdar City has garnered significant attention due to its competitive pricing and strategic location. Meanwhile, City of Lights in Al Reem Island continues to attract luxury apartment buyers with its modern architecture and premium waterfront views.
In the villa market, Bloom Living has become a popular choice among families seeking affordable housing with ample green spaces. On the luxury side, Saadiyat Lagoons on Saadiyat Island is a top contender, known for its exclusive waterfront properties and proximity to cultural landmarks.
Rental Market Trends
The rental market in Abu Dhabi has seen dynamic shifts across both affordable and luxury segments in Q3 2024. In the affordable apartment segment, areas like Khalifa City, Al Khalidiya, and Al Shamkha have witnessed significant tenant interest. Rents for 1- and 2-bedroom flats in Al Khalidiya and Tourist Club Area saw the highest increases, driven by a surge in demand.
In contrast, tenants seeking luxury apartments have focused on Al Reem Island, Al Raha Beach, and the Corniche Area, where rents have risen by 2% to 11%. Saadiyat Island remains a hotspot for luxury rentals, with noticeable price hikes in 1- and 2-bedroom apartments.
In the villa rental market, Mohammed Bin Zayed City, Khalifa City, and Madinat Al Riyadh continue to attract tenants looking for affordable housing. However, some areas, such as Shakhbout City and Al Reef, reported slight price decreases. On the luxury side, Yas Island, Al Raha Gardens, and Al Mushrif saw strong demand. Notably, 6-bedroom villas in Al Karamah experienced a price drop, while similar units in Al Mushrif saw a 12.4% increase.
Commenting on the findings, Haider Ali Khan, CEO of Bayut and Head of Dubizzle Group MENA, said: “The Abu Dhabi real estate market is continuing to stay strong this year, thanks to increased transparency and solid investments from both local and international players. If we look at just the last quarter, we have had over 3.5 million visits on our platform for listings in Abu Dhabi, showing just how strong the demand for properties in the capital is even during summer months. The government’s efforts to enhance data accessibility and push forward digital initiatives, like AI-powered services and the comprehensive DARI real estate platform, have definitely contributed to this.
Looking to the future, we can anticipate even better outcomes. The Abu Dhabi Real Estate Centre (ADREC) is set to attract more foreign investments by streamlining regulations and maintaining a strong focus on transparency. By embracing global standards and leveraging trends like smart city projects and sustainability, Abu Dhabi is positioned for even more growth in its real estate sector.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Following the devastation of recent flooding, experts are urging government intervention to drive the cessation of building in areas at risk.
2 min
An imposing Scottish castle that has only had four owners in its more than 200-year existence has hit the market asking for offers above £8 million (US$10.45 million).
Seton Hall, as it’s known, was built in 1789 by architect Robert Adam using stone from Seton Palace, the since-demolished property that was considered to be Mary Queen of Scots’s preferred retreat, according to Savills, which brought the home to the market last month.
“Seton is an absolutely magical castle—from the moment you approach, to the inner courtyard, to the quality of interior design,” said listing agent Jessica Gwyn.
The castle—roughly 10 miles from Edinburgh—remained in the same family from the late 18th century until 2003, which “served to freeze Seton in a protective time warp,” according to the listing.
Castellated features such as slit windows and turrets can be seen from the outside, and inside “secret staircases, curved doors, curved walls, arched windows and hidden doors add to the charming sophistication of the architecture and design,” the listing said.
But the castle has since been refurbished to meet modern standards, and now also boasts a helipad, a full security system, a gym, a playroom, a silk-lined dining room and a billiards room.
The restoration project saw a team of expert stonemasons rebuild the castle’s many chimneys, turrets and rooftop parapets. Plus, ironwork was restored, the dumbwaiter reinstated and the 10,000-bottle wine cellar was brought back to life, Savills said.
Alongside the seven-bedroom home that forms the core of the castle, there are additional residences across the property, including Darnley Cottage and Bothwell Cottage—named after Mary Queen of Scots’s husbands.
The castle’s stables have been refurbished, too, and are adjacent to the “Stable Bar,” the castle’s private pub.
The owner—who Mansion Global couldn’t identify—“feels their time as custodian of this outstanding building has come to a natural conclusion and it is time for this historic home to be loved and cared for by someone else,” Gwyn said.
This article first appeared on Mansion Global
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
New amenities, from a gym to a movie theatre, and a good commuter location filled this suburban office tower
3 min
Manhattan’s office-vacancy rate climbed to more than 15% this year, a record high. About 80 miles away in Philadelphia, occupancy also is at historically low levels. But a 24-storey office tower located between the two cities has more than doubled its occupancy over the past five years.
Developer American Equity Partners bought the New Jersey office tower, known as 1 Tower Center, for $38 million in 2019. At the time, the 40-year-old building felt dated. It had no gym, tenant lounge or car-charging stations. The low price enabled the firm to spend more than $20 million overhauling and luring tenants to the 435,000-square-foot property.
Now, the suburban building is nearly fully leased at competitive rents, mopping up tenants from other buildings after the owner added a new lobby, movie theatre, golf simulator, fitness centre and a tenant lounge featuring arcade games and ping-pong tables.
“Our tenants told us what they needed in order to fill up their offices,” said David Elkouby , a co-founder of American Equity, which owns about 4 million square feet of New Jersey office space.
The new owner also liked the location at the 14-acre hotel and conference-centre complex, off the New Jersey Turnpike’s Exit 9 in East Brunswick. The site is a relatively short commute for millions of workers in central New Jersey and is passed by 160,000 vehicles daily.
The property’s turnaround shows how office buildings can thrive even during dismal times for most of the U.S. office market, where vacancies remain much higher than pre pandemic.
Success often requires an ideal location—one that shortens the commute time of employees used to working at home—and the sort of upgrades and amenities companies say are necessary to lure employees back to the workspace.
One Vanderbilt, a deluxe office tower with a Michelin-star chef’s restaurant and plenty of outdoor space in Midtown Manhattan, is fully leased while charging some of the highest rents in the country.
The 11-story Entrada office building, in Culver City, Calif., is making the same formula work on the other coast. It opened two years ago with a sky deck, concierge services and recessed balconies. A restaurant is in the works. The owner said this month that it has signed three of the largest leases in the Los Angeles area this year.
1 Tower Center shows how the strategy can be effective even in less glamorous suburban locations. The tower is prospering while neighbouring buildings that are harder to reach with outdated facilities and poor food options struggle to fill desks even at reduced rents.
The recent interest-rate cut and reports that some big companies such as Amazon .com are re-instituting a five-day office workweek have raised hopes that the office market might be getting closer to turning.
But with more than 900 million square feet of vacant space nationwide and remote work still weighing on office demand, more creditors are seizing properties that are in default on debt payments.
Rates are still much higher than they were when tens of billions of dollars of office loans were made, and much of that debt is now maturing. The recent interest-rate cut doesn’t mean “office-sector woes are now over,” said Ermengarde Jabir, director of economic research for Moody’s commercial real-estate division.
Lenders are dumping distressed properties at steep discounts to what the buildings were worth before the pandemic. Some buyers are trying to compete simply by cutting their rents.
“Most owners don’t have the wherewithal to do what is required,” said Jamie Drummond, the Newmark senior managing director who is 1 Tower Center’s leasing agent. “Owners positioned to highly amenitise their buildings are the ones who are successful.”
HCLTech, a global technology company, illustrates the appeal. It greatly expanded its presence in New Jersey by moving this year to a 40,000-square-foot space designed for its East Coast headquarters at 1 Tower Center.
The India-based company said it was drawn to the building’s amenities and design. That made possible a variety of workspaces for employees, from quiet nooks to an artificial-intelligence lab. “You can’t just open an office and expect [employees] to be there,” said Meenakshi Benjwal , HCLTech’s head of Americas marketing.
HCLTech also liked the location near the homes of its employees and clients in the pharmaceutical, financial-services and other businesses.
Finally, it didn’t hurt that the building is a short drive from nearby MetLife Stadium. The company has a 75-person suite on the 50 yard line where it entertains clients at concerts and National Football League games.
“All of our clients love to fly from distant locations to experience the suite and stadium,” Benjwal said.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
JMJ Group Holding also signed a non-binding Memorandum of Understanding (MoU) with Ennismore
4 min
JMJ Group Holding, in partnership with Qetaifan Projects, has officially launched SLS Doha The Grove Residences, an ultra-luxury residential development, at Cityscape Qatar 2024. Designed by the internationally acclaimed Zaha Hadid Architects and situated on the exclusive Qetaifan Island North, SLS Doha The Grove Residences aspires to redefine innovation, sustainability, and luxury living in Qatar.
Real estate investors and enthusiasts had the opportunity to explore SLS Doha The Grove Residences at JMJ Group Holding’s booth, part of the Qetaifan Projects pavilion at the exhibition. Guided by JMJ’s real estate advisors, visitors learned about the project’s standout features, including the spectacular design, smart home integrations, and sustainability initiatives. Visitors also explored investment incentives, such as flexible payment plans and rental assistance, and discovered how SLS Doha The Grove Residences offers a unique blend of luxury living and strong investment potential through interactive displays and models.
JMJ Group Holding also signed a non-binding Memorandum of Understanding (MoU) with Ennismore, the fastest-growing lifestyle and leisure hospitality company, to bring to life the branded residence, SLS Doha The Grove Residences. This potential collaboration enhances the project’s exclusivity, aligning SLS Doha The Grove Residences with SLS’s inimitable brand of immersive extravagance. This collaboration ensures that, alongside the exclusivity, privacy and carefully curated services associated with a branded residence, owners will also have access to an enviable array of dedicated residential amenities, all managed by Ennismore and SLS.
On the occasion, Sheikh Jabor bin Mansour bin Jabor bin Jassim Al Thani, Chairman of JMJ Group Holding, commented: “SLS Doha The Grove Residences embodies our commitment to crafting residences that harmonize luxury, innovation, and sustainability. This project sets a new benchmark for high-end living, offering exceptional design and world-class amenities. We invite investors to explore the unique opportunities SLS Doha The Grove Residences presents, as it promises not just a home but a premium lifestyle investment.”
He continued: “Signing an MOU with Ennismore further enhances this exclusive experience. A name synonymous with world-class hospitality, SLS’s expertise will ensure that residents at SLS Doha The Grove Residences enjoy unparalleled service that truly redefines luxury in Qatar.”.
Chadi Farhat, Brand COO of SLS & Head of Asia Pacific & Middle East at Ennismore, added: “We are honored to be part of SLS Doha The Grove Residences, a project that exemplifies the power of collaboration and forward-thinking design. This partnership will mark an important step for our SLS brand as we expand into the Qatari market, where the demand for high-end, innovative living is growing. This project aligns perfectly with our commitment to creating extraordinary experiences, and we see great potential in contributing to Qatar’s dynamic luxury real estate sector. We look forward to delivering our renowned service and hospitality to create an exceptional living experience for residents wishing to say farewell to the ordinary.”
Set to infuse breathtaking experiences with signature mischievous wit and a playful ambience, SLS Doha The Grove Residences Doha is comprised of 293 lavishly designed residences, from one to four-bedroom apartments, each offering panoramic views of the Lusail skyline and access to an array of premium amenities. Residents will benefit from a waterfront promenade, complete with exclusive boutiques, cafes, and restaurants, as well as access to infinity pools, a state-of-the-art wellness center, a private members’ club, and a marina. With its striking design and cutting-edge facilities, SLS Doha The Grove Residences seamlessly fuses modern architecture with environmental responsibility to deliver an exceptional living experience. Flexible pricing options are available, making SLS Doha The Grove Residences accessible to a range of buyers seeking luxury living in one of Qatar’s most prestigious locations.
Sheikh Nasser Bin Abdulrahman Al Thani, Chairman and Managing Director of Qetaifan Projects, stated, “This partnership with JMJ Group Holding is part of Qetaifan Projects’ ongoing successful collaborations locally, regionally, and internationally. Our partnership with JMJ Group Holding reflects Qetaifan Island North’s role as an attractive investment environment. We are excited to support SLS Doha The Grove Residences, a visionary project designed by Zaha Hadid Architects that caters to the market with more options and enriches Qatar’s positioning as a high-end, sustainable living leader.”
Juan Ignacio Aranguren, Associate Director at Zaha Hadid Architects, stated: “Innovation has always been at the heart of Zaha Hadid Architects’ approach to design. SLS Doha The Grove Residences project exemplifies how architecture can be a catalyst for creating vibrant, resilient communities.”
As SLS Doha The Grove Residences takes its place as a defining landmark on Qetaifan Island North, it sets a new benchmark for luxury living in Qatar. JMJ Group Holding’s collaboration with Zaha Hadid Architects and Ennismore not only elevates the project but also reflects a bold vision for the future of real estate in the region. With its innovative design, sustainable features, and world-class amenities, SLS Doha The Grove Residences is set to redefine the standard of modern living.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Setting new standards for excellence fashioning homes that cater for every lifestyle
2 min
ONE Development has appointed AE7, a globally renowned architectural and engineering firm, as the consultant for its AED 2 billion flagship project in Dubai’s City of Arabia. AE7 will be responsible for the project’s master planning, architecture, design, AI innovation integration, and development management. Their role also includes overseeing engineering, interior design, landscape architecture, project management, and implementing sustainability practices. This highly anticipated development is expected to be unveiled soon, marking a significant step for ONE Development.
AE7 is a global top 50 multi-billion-dollar Building, Design and Construction group with a proven track-record of excellence. Established in 2009 by seven internationally renowned American design professionals with over 40 years’ experience designing and creating destinations in the USA, Asia and the Middle East with almost 20 years of experience, the company has grown into a full-service architectural group providing specialty expertise through six offices worldwide, which has designed and managed over US$40 billions of design work over the past five years.
Ali Al Gebely, ONE Development Founder & Chairman, called the appointment a collaborative milestone between two like-minded organizations, saying: “We are in the process of redefining urban living through the integration of cutting-edge AI and its technology, and our City of Arabia project is a flagship enterprise that requires the strength and resilience of a world-leading consultancy that shares our aspirations, and selecting AE7 to be the project consultant aligns with our vision to have a strong world-renowned multi-disciplinary design firm on board. ONE Development and AE7 will offer our community residents a high-tech lifestyle that not only enhances their convenience by enabling them to engage and connect with their devices, homes, surroundings and facilities for a better life, but also upholds our joint commitment to environmental responsibility. From smart home systems to energy-efficient solutions, this development is setting new benchmarks for sustainable living in Dubai.”
Tomas Gulisek, Principal and Design Director at AE7, added: “AE7 is a global design firm with a reputation for breaking traditional boundaries through innovative solutions and comprehensive services. Our partnership with ONE Development on this prestigious project will enable us to jointly reinforce our vision of how a collaboration between two dedicated organizations can result in achieving innovative design solutions that do more than just provide accommodation; we are creating spaces that foster a sense of community while respecting residents’ privacy and honoring their individuality. It’s about balancing innovation with functionality, where design elevates everyday experiences.”
ONE Development is transforming the real estate landscape, setting new standards for excellence fashioning homes that cater for every lifestyle.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Violet Tower will stand as a major addition to JVC’s rapidly evolving skyline
2 min
The Violet Tower, a prestigious new residential project by Dubai Investments in the heart of Jumeirah Village Circle (JVC), is making remarkable progress. With its foundation work nearing completion, and 99.3% of the piling work already finished, this AED 300 million development is poised to become a standout feature in JVC’s evolving skyline. The project, led by top-tier construction firms, aims to deliver contemporary urban living spaces designed for modern residents.
Having logged approximately 58,000 working hours to date, the project remains on track for key milestones. The enabling works are expected to be completed by the fourth quarter of 2024, and the entire project is projected to be ready for occupancy by Q4 2026. Notably, the construction process has upheld an impeccable safety record, with no reported incidents, highlighting the efficiency and commitment of the team involved.
Strategic Location and Cutting-Edge Design
Positioned in the heart of JVC, Violet Tower is designed to meet the growing demand for modern, well-planned residential spaces. The development will offer 287 units spread across 27 floors, ranging from studios to two-bedroom apartments. Each unit has been meticulously planned to maximize space efficiency and cater to contemporary living standards, making it an attractive option for both professionals and families seeking quality homes in a vibrant community.
In addition to its strategic location, Violet Tower, by Dubai Investments, is packed with innovative features. A distinctive steel canopy roof will crown the building, giving it a unique architectural identity. The entrance area will be multifunctional, featuring a coworking station, perfect for the growing number of remote workers in the city. Moreover, the building will offer 24/7 security, ensuring a safe and comfortable living environment for all residents.
Strong Collaborations Ensuring Quality
The success of Violet Tower is backed by partnerships with some of the region’s most reputable contractors and specialists. Al Ghurair Contracting is overseeing the main construction works, ensuring that the development adheres to the highest standards of craftsmanship and durability. Tech Foundation is managing the enabling works, while the Arab Centre has been entrusted with pile testing, guaranteeing that the project meets rigorous quality benchmarks from the ground up.
A Vision for the Future
Upon its anticipated completion in late 2026, Violet Tower will stand as a major addition to JVC’s rapidly evolving skyline. It promises to offer a unique blend of contemporary living, thoughtful design, and community integration. By addressing the rising demand for modern urban homes, Violet Tower aims to provide its residents with a lifestyle that balances convenience, comfort, and cutting-edge features.
As Jumeirah Village Circle continues to grow as one of Dubai’s premier residential hubs, Violet Tower is poised to become a key player in the district’s transformation. With its forward-thinking design, top-tier amenities, and prime location, this development is not just about building homes—it’s about shaping the future of living in Dubai.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Stromek’s scope of work will focus on ensuring the stability and sustainability of the development’s foundational elements.
2 min
Dar Global has awarded the contract for shoring, excavation, and piling works on its prestigious ‘The Astera, Interiors by Aston Martin‘ project to Stromek Emirates Foundations. Recognized for their expertise in high-quality foundational engineering, Stromek Emirates has a strong reputation for delivering exceptional construction services across the region.
With a Gross Development Value of Dh900 million (£200 million), ‘The Astera’ marks Aston Martin‘s first venture into interior design for a real estate development in the Middle East. Set on the picturesque Al Marjan Island in Ras Al Khaimah, the project will feature a mix of luxury apartments and villas, blending Aston Martin’s signature design aesthetics with Dar Global’s commitment to offering exceptional living experiences.
Stromek’s scope of work will focus on ensuring the stability and sustainability of the development’s foundational elements. The firm’s expertise will play a critical role in preparing the site for construction, ensuring that the project can proceed smoothly while adhering to the highest standards of safety and precision.
“We are thrilled to have Stromek on board for this pivotal phase of ‘The Astera’ project. Their proven track record of excellence in shoring, excavation, and piling work perfectly aligns with the standards we uphold at Dar Global,” said Ziad El Chaar, CEO of Dar Global. “This collaboration underscores our commitment to working with the best in the industry to deliver world-class luxury developments that will leave a lasting impact.”
The shoring, excavation, and piling works are expected to commence immediately, laying the foundation for what will soon be a landmark development on the Arabian Sea. Stromek’s appointment is a key milestone in the progress of ‘The Astera,’ a development that will combine iconic British design with cutting-edge engineering and craftsmanship, elevating the living experience for future residents.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
These results emphasise the transformative impact of The Ellinikon project
2 min
LAMDA Development announced remarkable financial results for H1 2023. Driven by the record-breaking profitability of Malls and Marinas, alongside rapid progress across the trailblazing Ellinikon project on the Athens Riviera, consolidated operating profit has increased by 90% year-on-year to reach €72 million.
This impressive figure includes a 30% increase in operating profitability for Malls at €41 million and a 6% increase for Marinas at €9 million. To date, The Ellinikon has generated €366 million in property sales, fueling development across key assets, including significant milestones for Riviera Tower, The Cove Residences, and Vouliagmenis Mall.
These results emphasize the transformative impact of The Ellinikon project, a 15-minute paradigm city presenting a contemporary way of life and a new landmark for 21st-century Greece. Redefining the skyline of Athens, this development features luxury residences, world-class marinas, and state-of-the-art retail spaces to produce premium opportunities for international investors, particularly those in the GCC looking to diversify into European real estate.
“In Athens, we’re creating a place that stands for progress, where lives can be truly well lived in an amazing setting. And where new generations will find greater opportunities,” remarked Odisseas Athanasiou, CEO of LAMDA Development S.A. “The Ellinikon will reposition the country on the international investment map leading to an increased tourism footprint and a significantly healthier economy.”
The Ellinikon is positioned to become a hub for luxury living and high-end commercial activity with direct appeal to GCC investors seeking to expand their international portfolio. The project has already attracted high levels of interest, with huge demand for presales in waterfront residential properties such as Riviera Tower and The Cove Residences.
Exceptional property sales have empowered rapid reinvestment to facilitate pushing forward with The Ellinikon infrastructure. In addition to the residential towers and Vouliagmenis Mall—where 57% of the leasable area is now subject to tenant agreements—this has allowed accelerated progress including the completion of construction for the AMEA Building Complex among other core works.
With the luxury real estate market in Europe attracting heightened interest from Gulf investors, The Ellinikon offers a unique combination of lifestyle, location, and long-term value. The success of the project underscores LAMDA Development’s commitment to delivering world-class properties that resonate with high-net-worth individuals and institutional investors.
Key Highlights:
- Consolidated Operating Profit: €72 million (90% increase YoY)
- Malls Operating Profitability: €41 million (30% increase)
- Marinas Operating Profitability: €9 million (6% increase)
- Total Property Sales from The Ellinikon: €366 million
- Significant Demand for Waterfront Properties
Future Outlook
The ongoing developments at The Ellinikon project indicate a strong future trajectory with further phases planned. This includes luxury residential units and commercial spaces that cater specifically to high-net-worth individuals from the GCC region.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Further project details will be announced before end of the year.
< 1 min
Ohana Development, a leading luxury real estate developer, has revealed plans to launch a new branded residence project in partnership with a world-renowned luxury brand. The exclusive development, located in Abu Dhabi, is designed to elevate the standards of luxury beachfront living in the UAE.
The official launch is scheduled for the first quarter of 2025, marking another addition to Ohana Development’s collection of branded residences, following the success of its Elie Saab Waterfront by Ohana project.
Engineer Husein Salem, CEO of Ohana Development said, “We are thrilled to partner with one of the world’s most renowned luxury brands, bringing unparalleled beachfront living experiences to Abu Dhabi’s bustling real estate sector. This project will combine elegant design with incredible surroundings, offering an exclusive lifestyle for residents. We look forward to sharing more details in the coming weeks.”
Ohana Development is renowned for its portfolio of world-class waterfront properties, such as the prestigious Ohana Villas, featuring exquisitely crafted pieces from the ELIE SAAB Maison collection, Ohana Hills, a residential community with breathtaking views, Ohana by the Sea, that features luxury villas, as well as the Elie Saab Waterfront by Ohana. These developments exemplify the company’s commitment to creating sophisticated, unique spaces that offer exceptional lifestyle experiences across the UAE and beyond.
Further project details will be announced before end of the year.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
South Garden is the latest addition to Wasl Gate master development
2 min
Wasl, a leader in Dubai’s real estate development and management, has announced the complete sell-out of all units in its latest project, South Garden, within just 48 hours. South Garden, a freehold residential development, is part of the larger Wasl Gate master development located in Jebel Ali.
The project benefits from its strategic location, close to Festival Plaza, which houses popular stores such as IKEA and ACE, along with other retail destinations. It is well-connected to Dubai via easy access to Sheikh Zayed Road and the Energy metro station. South Garden also provides direct access to Al Maktoum International Airport, Expo City, and key free zones, including Jebel Ali Free Zone (JAFZA), Dubai Multi Commodities Center, Dubai Internet City, Dubai World Central, and Dubai Parks and Resorts.
South Garden offers 768 residential units to suit various budgets and lifestyles. Studios starting from 399 to 508 sq. ft., one-bedroom units ranging from 824 to 1,086 sq. ft, two-bedroom units starting from 1,153 to 1,299 sq. ft., as well as three-bedroom apartments from 1,744 to 2,127 sq. ft.
Mohamed Al Bahar, Director of Business Development at Wasl, said: “We are delighted to witness this overwhelming response to the launch from investors and end users. This highlights the strength of Dubai’s real estate sector and reflects the increasing demand for well-designed and well-priced residential projects.”
South Garden is the latest addition to the Wasl Gate master development. Wasl Gate includes several other residential projects alongside South Garden, such as The Nook, Gardenia Townhomes, and Hillside Residences. The Nook offers modern apartments of various sizes, while Gardenia Townhomes features spacious three- and four-bedroom townhouses, and Hillside Residences offers a variety of modern and unique apartments with spacious living areas.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Alexandre de Betak and his wife are focusing on their most personal project yet.
Redefining Urban Living with Innovation, Sustainability, and Exceptional Amenities.
4 min
Union Properties PJSC’ has officially launched its new ‘Takaya’ project in Dubai Motor City, the Company’s latest milestone in Dubai’s Real Estate landscape designed to redefine sophisticated urban living. Takaya sets a new standard in the mid-to-high range segment, promising exceptional living experiences for its residents.
The launching ceremony was held at the Ritz Carlton DIFC, in the presence of Eng. Amer Khansaheb, Chief Executive Officer and Board Member, Union Properties. During the ceremony, Eng. Khansaheb highlighted how the project demonstrates the Company’s steadfast dedication to advancing Dubai’s Real Estate sector. The Takaya project aims to enrich the offerings provided within the Motor City’s master community, while also delivering novel and distinctive amenities that will attract investors and fulfil diverse customer needs.
The mix-use project, Takaya is constructed over a plot area spanning 436,175 sq. ft, overlooking the Dubai Autodrome, along with a stunning 500-metre retail boulevard. It comprises three residential towers with 744 affordable luxurious apartments. It also offers competitive unit sizes (studio, 1, 2, 3 BR) and pricing, making it a compelling market choice., along with penthouses, townhouses, villas, and commercial space. In contrast to other properties in the market, Takaya offers spacious living areas with attractive, post-handover payment plan. From sleek finishes to state-of-the-art amenities, the development, which is valued at approximately AED 2 billion, is set to provide a prestigious living experience for residents.
Commenting on the official launch, Eng. Amer Khansaheb stated: “We are thrilled to officially launch the eagerly awaited ‘Takaya’ project in Dubai Motor City, which reflects our unwavering commitment to innovation, sustainability and excellence. At ‘Union Properties’, we are driven by our mission of creating exceptional living experiences for customers through our several unique projects. The launch of ‘Takaya’ project is in line with our long-term growth objectives, further reinforcing our commitment to delivering superior quality and unparalleled value for customers. Our overarching objective is to create a vibrant residential community overlooking the one and only one Dubai Autodrome, which will redefine the standards of modern urban living.”
“By leveraging our extensive industry expertise and market insights, we look forward to capitalizing on new opportunities in the Real Estate market and future-ready liveable environments. The market has witnessed significant growth over the previous years, making the Motor City a global hub for property investors and homebuyers. The sector is expected to continue expanding in the coming years, further strengthening its appeal within the broader UAE market.” Eng. Khansaheb added.
Developments by Union Properties greatly contribute to Motor City market value and status by complementing current market offerings. According to DLD data, Motor City has experienced a sharp rise in Real Estate transactions and a notable acceleration of market momentum over the last three quarters. Recently launched off-plan projects in Motor City have experienced strong demand, which has a positive impact on the appreciation of property values.
Moreover, the UAE’s Real Estate market is anticipated to continue its strong performance in the coming years with projections pointing towards an astounding value of USD 0.7 trillion by 2024. Between 2024 and 2028, an annual growth rate of 3.03 per cent is expected, resulting in a market volume of USD 0.80 trillion by the latter year.
The Takaya development has been crafted with meticulous precision, ensuring maximum functionality and comfort and attention to detail meeting the highest standards of quality for residents. It is integrated with innovative smart building management systems that employ cutting-edge technologies to reduce energy consumption and operational costs. Upscale features of the development include – outdoor sports courtyards, leisure pool, kid’s pool, jogging track, kids play area, multipurpose rooms at each tower, an arcade lounge, co-working spaces, cinema/AV room, and more. Furthermore, the ground floor of each tower hosts a mix of retail outlets, food and beverage establishments, as well as other services. The development also features 150 parking spaces equipped with EV chargers.
With sustainability as one of its prime focus, ‘Union Properties’ is contributing towards mitigating the challenges posed by climate change and other environmental hazards. The integration of sustainable materials and designs ensures longevity, lowers environmental impact and reduces utility costs of the development. Takaya has been designed with high-performance facades that exceed green building guidelines and makes use of a large plot of approximately 450,000 square feet to create parks, a large central garden and other green spaces. Along with sustainability, the Company also prioritizes healthy living, and in this regard, Takaya offers sports facilities such as jogging tracks, padel, and basketball courts, lap pool and squash court, in an urban environment where open spaces are scarce, which will be a key selling point for the coming years.
Takaya’s unbeatable launch payment plan, which is 60 per cent due within three years of construction and 40 per cent due in three years post-handover, provides investors and end users with further cash flow flexibility. Union Properties’ efforts to reduce operational costs also provide the residents with a sustainable savings option, that supports value appreciation with time. The handover date for this flagship project is expected to be in Q4 2027. Looking ahead, ‘Union Properties’ continues to be driven by its mission to create unique and remarkable residential developments, as well as reshape the future of urban living. The company aims to accomplish several ambitious objectives, such as the launch of AED 6 billion projects just in the next 18 months. With a strategic vision and a strong commitment to excellence, ‘Union Properties’ is well-positioned to leverage new opportunities and play a pivotal role in Dubai’s thriving real estate sector by adding to the city’s extensive property portfolio.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Sydney’s prestige market is looking up, here’s three of the best on the market right now.
For every hotel spotlighting its historical bona fides, there are many that didn’t stand the test of time. Here, some of the most infamous.
3 min
Many luxury hotels only build on their gilded reputations with each passing decade. But others are less fortunate. Here are five long-gone grandes dames that fell from grace—and one that persists, but in a significantly diminished form.
The Proto-Marmont |
The Garden of Allah, Los Angeles
A magnet for celebrities, the Garden of Allah was once the scene-making equivalent of today’s Chateau Marmont. Frank Sinatra and Ava Gardner’s affair allegedly started there and Humphrey Bogart lived in one of its bungalows for a time.
Crimean expat Alla Nazimova leased a grand home in Hollywood after World War I, but soon turned it into a hotel, where she prioritised glamorous clientele. Others risked being ejected by guards and a fearsome dog dubbed the Hound of the Baskervilles. Demolished in the 1950s, the site’s now a parking lot.
The Failed Follow-Up |
Hotel Astor, New York City
The Astor family hoped to repeat their success when they opened this sequel to their megahit Waldorf Astoria hotel in 1904. It became an anchor of the nascent Theater District, buzzy (and naughty) enough to inspire Cole Porter to write in “High Society”: “Have you heard that Mimsie Starr…got pinched in the Astor Bar?”
That bar soon gained another reputation. “Gentlemen who preferred the company of other gentlemen would meet in a certain section of the bar,” said travel expert Henry Harteveldt of consulting firm Atmosphere Research. By the 1960s, the hotel had lost its lustre and was demolished; the 54-storey One Astor Plaza skyscraper was built in its place.
The Island Playground |
Santa Carolina Hotel, Bazaruto Archipelago, Mozambique
In the 1950s, colonial officers around Africa treated Mozambique as an off-duty playground. They flocked, in particular, to the Santa Carolina, a five-star hotel on a gorgeous archipelago off the country’s southern coast.
Run by a Portuguese businessman and his wife, the resort included an airstrip that ferried visitors in and out. Ask locals why the place was eventually reduced to rubble, and some whisper that the couple were cursed—and that’s why no one wanted to take over when the business collapsed in the ’70s. Today, seeing the abandoned, crumbled ruins and murals bleached by the sun, it’s hard to dismiss their superstitions entirely.
The Tourism Gimmick |
Bali Hai Raiatea, French Polynesia
The overwater bungalow, a shorthand for barefoot luxury around the world, began in French Polynesia—but not with the locals. Instead, it was a marketing gimmick cooked up by a trio of rascally Americans. They moved to French Polynesia in the late 1950s, and soon tried to capitalise on the newly built international airport and a looming tourism boom.
That proved difficult because their five-room hotel on the island of Raiatea lacked a beach. They devised a fix: building rooms on pontoons above the water. They were an instant phenomenon, spreading around the islands and the world—per fan site OverwaterBungalows.net , there are now more than 9,000 worldwide, from the Maldives to Mexico. That first property, though, is no more.
The New England Holdout |
Poland Springs Resort, Poland, Maine
The Ricker family started out as innkeepers, running a stagecoach stop in Maine in the 1790s. When Hiram Ricker took over the operation, the family expanded into the business by which it would make its fortune: water. Thanks to savvy marketing, by the 1870s, doctors were prescribing Poland Spring mineral water and die-hards were making pilgrimages to the source.
The Rickers opened the Poland Spring House in 1876, and eventually expanded it to include one of the earliest resort-based golf courses in the country, a barber shop, dance studio and music hall. By the turn of the century, it was among the most glamorous resort complexes in New England.
Mismanagement eventually forced its sale in 1962, and both the water operation and hospitality holdings went through several owners and operators. While the water venture retains its prominence, the hotel has weathered less well, becoming a pleasant—but far from luxurious—mid-market resort. Former NYU hospitality professor Bjorn Hanson says attempts at upgrading over the decades have been futile. “I was a consultant to a developer in the 1970s to return the resort to its ‘former glory,’ but it never happened.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Chinese consumers watching the value of their homes fall are losing the confidence to spend on designer goods
3 min
How closely is demand for $3,000 handbags tied to home prices in China? Quite closely, it turns out, which is unfortunate for luxury brands.
Europe’s luxury stocks fell in early trading Tuesday after China’s economic planning agency failed to announce additional measures to kickstart growth that some investors had hoped for. The sector is still up 10% on average since Beijing launched its initial stimulus plans late last month.
Beijing hopes a cut to mortgage rates, and lower down-payment requirements for buyers of second homes, will jump-start the country’s troubled housing market. A package of loans to brokers and insurers to buy Chinese shares has had initial success at lifting the stock market.
Luxury spending in China has traditionally been more correlated with its home prices than with the financial markets or overall economic growth. Around 60% of net household wealth was tied up in property before prices peaked in 2021. Barclays estimates that falling home prices have destroyed about $18 trillion in household wealth since then, which is equivalent to roughly $60,000 per family.
This, along with worries about the wider economy, is hurting consumer confidence. Retail sales rose just 2.1% in August compared with the same month last year, according to data from China’s National Bureau of Statistics. When global luxury brands start to report their third-quarter results next week, Chinese demand is expected to have slowed since they last updated investors.
Flagging sales come at an unhelpful time for Europe’s luxury companies, which rely on Chinese consumers for a third of global luxury spending. After several bumpy years during the pandemic, luxury brands and their investors hoped that a comeback in Chinese spending would compensate for a slowdown among Europeans and Americans.
This looks increasingly unlikely. Luxury sales to Chinese shoppers are expected to shrink 7% in 2024 and by 3% next year, according to UBS estimates. As luxury brands have high fixed costs, including the most expensive retail rents in the world, a slowdown with such key customers could have an outsize impact on profit margins.
The last time the luxury industry went through such a rocky patch in China, barring the pandemic, was between 2014 and 2016 when Beijing was cracking down on corruption, including officials who were gifting Louis Vuitton handbags and Rolex watches in exchange for political favours. The global luxury industry barely grew for two years during China’s anticorruption drive, which also coincided with a property-market correction in the country. It didn’t help that shoppers in other markets were also tiring of logos back then.
Europe’s luxury stocks look expensive today compared with that time. As a multiple of expected earnings, listed brands’ shares now trade at a roughly 40% premium to their 2014 to 2016 average.
To justify the higher price tag, Beijing’s housing and wider economic stimulus would need to indirectly lift luxury demand. Measures rolled out so far may not be enough to slow the slide in home prices. China’s housing market is oversupplied by around 60 million units, according to Bloomberg Economics estimates.
New incentives to kick-start consumption are expected soon but will probably target mass-market products like white goods. China already rolled out trade-in subsidies for home appliances earlier this year and a range of consumption coupons.
None of this is very helpful for sellers of expensive luxury goods. For brands to see a recovery, Chinese consumers that spend anywhere from $7,000 to $43,000 a year on luxury products would need to feel much better about their finances than they currently do. Spending by this group has fallen 17% so far this year compared with the same period of 2023, according to a report by Boston Consulting Group.
Half-finished, abandoned housing estates are a big headache for China’s government, and are also on the mind of executives in Paris and Milan. Though the fortunes of luxury bosses likely isn’t high on Chinese officials’ priority list, their fates may be intertwined.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Self-tracking has moved beyond professional athletes and data geeks.
