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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Whitewill reports strong demand across Dubai and Abu Dhabi’s ultra-luxury property markets, with investors focusing on prime locations, trusted developers, and long-term value. Buyer activity remains robust in Dubai’s secondary and waterfront segments, while Abu Dhabi sees momentum in branded, off-plan developments on Yas Island. High-value deals, including trophy penthouses and luxury villas, highlight continued appetite for premium assets. Looking ahead, the market is expected to remain stable, driven by disciplined, long-term investors prioritizing security, quality, and returns.
DMCC announces Ellington Properties’ flagship integrated sales center at Uptown Dubai, spanning 16,000 sq. ft. at The Atrium. The new space blends experience, sales, offices, and show units—reinforcing Uptown’s position as a connected lifestyle and real estate destination.
Abu Dhabi real estate is getting smarter. Investors are moving away from off-plan hype and doubling down on ready, income-generating properties—prioritizing stability, steady returns, and long-term value.
This performance reflects the UAE leadership’s proactive vision and renewed directives to enhance the readiness and resilience of economic sectors.
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Dubai’s rental market indicators in the first quarter (Q1) of 2026 demonstrate sustained stability, supported by strong regulatory and economic fundamentals. The market continues to show steady activity within a dynamic environment that adapts efficiently and reinforces confidence.
This performance reflects the UAE leadership’s proactive vision and renewed directives to enhance the readiness and resilience of economic sectors, reinforcing sustainable growth, strengthening investor confidence, and underscoring Dubai’s ability to maintain balanced economic growth.
According to data from the Dubai Land Department, the total value of rental contracts during Q1 2026 reached AED32.2 billion, reflecting a sustained pace of activity, supported by clear legislation and an integrated regulatory environment that governs relationships across the market.
New rental contracts reached 118,385, alongside 135,607 renewal contracts, indicating sustained market activity and stable landlord–tenant relationships within a transparent and reliable framework. In another positive indicator, the number of cancelled contracts declined by 25%, reflecting greater rental-cycle stability, stronger market cohesion, and reduced volatility.
The number of real estate offices operating in the market reached 10,200, enhancing market efficiency, expanding the base of active stakeholders, and supporting the quality of services provided to investors and customers.
Furthermore, 3,599 real estate licenses were registered in the market, spanning a wide range of sector-related activities and services. Real estate sales and purchase brokerage licenses led with 1,564, followed by Real estate leasing brokerage with 928, transaction follow-up services with 376, and real estate development with 128 licenses.
Other licenses cover a range of activities, including administrative supervision services for owners’ associations, real estate consultancy, private property leasing and management services, mortgage brokerage, business centers, real estate valuation services, surveying, and organizing public real estate auctions. This diversity and breadth of licenses reflect the dynamism and integration of Dubai’s real estate market, alongside the advancement of its service ecosystem and its ability to efficiently and flexibly meet the needs of various stakeholders.
These indicators highlight that Dubai’s rental market is anchored within an integrated ecosystem that unifies development, investment, and regulation while promoting stability and enabling agile adaptation to evolving dynamics. Market performance reflects a balanced supply–demand equation, supported by sustained project activity, diversified offerings, and clear policies, ensuring long-term sustainability and consistent performance.
In light of this performance, Dubai’s real estate sector continues to reinforce its position as a key pillar of the emirate’s economic growth, supported by a forward-looking leadership vision, a flexible regulatory environment, and renewed investor confidence, ensuring market continuity and strengthening its readiness for future phases with confidence and stability.
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Dubai’s commercial market is shifting from volume to value. CRC’s Q1 2026 report shows sales value up 30% YoY to AED 37.9B, despite a slight dip in transactions. Offices and retail led growth, off-plan dominates at 78%, and the outlook remains strong on the back of solid economic momentum.
2 min
CRC (Commercial Real Estate Consultants) has officially released its Q1 2026 Commercial Property Market Report, detailing a significant evolution in Dubai’s commercial landscape. The findings point toward a market entering a phase of “strategic maturation,” where a deliberate move from volume-driven to value-driven acquisitions has pushed capital values to historic highs, even as the market experiences a slight cooling in overall transaction frequency following the record-breaking close of 2025.
The report highlights that while total commercial units sold dipped by 3% to 3,619 transactions, the market remains fundamentally robust. Total sales value for the quarter reached AED 37.9 billion, representing an impressive 30% increase year-on-year compared to the same period in 2025.
Behnam Bargh, Managing Director of CRC, notes that this performance reflects a broader trajectory of economic stability within the UAE. He emphasizes that while there was a 16% softening in total sales value relative to the final quarter of 2025, the underlying market remains strong, supported by a projected 5.6% real GDP growth for 2026 and the recent AED 1 billion economic incentive package aimed at enhancing private sector liquidity.
The office sector stood out as the primary growth engine during the first quarter. While transaction volumes rose by a steady 2% to 1,565 units, the total sales value skyrocketed by 73% quarter-on-quarter to reach AED 8.2 billion. This surge in value is further evidenced by a major milestone in the secondary market, where prices broke the psychological barrier of AED 2,000 per sq ft for the first time, settling at an average of AED 2,023. Geographically, Al Sufouh led the market in activity, followed closely by established business hubs like Business Bay and JLT.
In the retail segment, assets underwent a dramatic repricing that saw sales values surge by 162% year-on-year. This shift reflects a growing appetite for premium, high-traffic spaces and community-centric retail models. Jumeirah Village Circle (JVC) emerged as the top performer for retail transactions, followed by Motor City. Eliza Esenbek, Head of Retail and F&B at CRC, suggests that the current boom in neighborhood retail highlights a transition toward convenience and well-being, where destination shopping is being supplemented by curated, daily-life experiences.
The report also identifies aggressive demand in the off-plan and industrial sectors. Off-plan transaction volumes rose by 26%, but the value of these deals outperformed volume growth with a staggering 158% increase, now accounting for 78% of all commercial transactions. Simultaneously, warehouse demand remains fierce, with leads growing by 73% year-on-year and 72% quarter-on-quarter, indicating sustained institutional interest in logistics and industrial assets.
On the leasing front, the market is seeing a notable shift in tenant behavior centered on cash-flow management. While the 4-cheque payment plan remains the industry standard, accounting for 55% of transactions, 1-cheque payments saw a significant 13% decline. This suggests that corporate tenants are increasingly prioritising operational liquidity over the upfront discounts typically associated with single-payment terms.
Looking ahead, the CRC report maintains a positive outlook for the remainder of 2026. Driven by the D33 economic framework and substantial foreign direct investment, Dubai continues to establish itself as a global benchmark for commercial resilience. As non-oil sectors like logistics and the digital economy continue their expansion, the requirement for physical footprints remains a mandatory driver for the market’s long-term growth.
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Amid affordability pressures, U.S. homebuilders are cutting costs by using cheaper materials and simplifying designs, reshaping the look of new homes, while NYC developers are exploiting a tax loophole by splitting projects into 99-unit buildings to avoid stricter rules, as broader data highlights ongoing pressure on consumers and rising homeownership costs.
2 min
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Ninety-nine is suddenly the magic number for New York City apartment developers. That’s because of a 2024 city program that offers a tax exemption for most apartment buildings that have fewer than 100 units and include some affordable housing.
Anyone building bigger than that has to abide by stricter requirements to get the same tax break. Developers have found a way around those harsher rules. They are assembling complexes with hundreds of apartments but slicing them up into 99-unit pieces when seeking permitting approval from the city.
Data Points
- 0.4%: The monthly jump in total retail sales in March, the sixth straight month of increases, according to the CNBC/NRF Retail Monitor, powered by Affinity Solutions. This was at least partly a result of the first round of tax refunds boosting consumer spending, even as gas prices rose.
- 32%: The percent of Gen-Z homeowners who spend 30% or more of their income on mortgage payments, which is higher than both millennials and Gen X borrowers, according to LendingTree.
- 17%: The percent of U.S. homeowners who are interested in or actively considering an ADU, according to a survey by Block Renovation, a renovation design platform. The survey was conducted online from Feb. 19 to March 4 and sampled 1,059 homeowners from all 50 states.
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Whitewill reports strong demand across Dubai and Abu Dhabi’s ultra-luxury property markets, with investors focusing on prime locations, trusted developers, and long-term value. Buyer activity remains robust in Dubai’s secondary and waterfront segments, while Abu Dhabi sees momentum in branded, off-plan developments on Yas Island. High-value deals, including trophy penthouses and luxury villas, highlight continued appetite for premium assets. Looking ahead, the market is expected to remain stable, driven by disciplined, long-term investors prioritizing security, quality, and returns.
3 minWhitewill, the international luxury real estate agency for developers and partners across the UK, USA, and UAE markets, has reported strong ultra-luxury residential property demand across Dubai and Abu Dhabi, reflecting investor confidence and continued appetite for high-quality assets in both emirates. This also points to a market that is becoming more selective, with capital continuing to concentrate around prime locations and credible developments.
Olga Pankina, COO of Whitewill Dubai, commented: “The deals we are seeing across Dubai and Abu Dhabi show that demand remains firmly present, but buyers are approaching the market with greater discipline and a clearer investment strategy. In Dubai, we continue to see strong interest in liquid secondary stock and rare waterfront assets, while in Abu Dhabi, demand is more concentrated in branded, concept-led developments with a long-term ownership profile. Across both markets, clients are prioritising legal security, trusted developers, and assets that can preserve value over time. Our role is to guide clients through that process with clear advice, full transaction support, and access to opportunities that match their goals.”
Dubai’s prime market stays active
In Dubai, demand is largely concentrated in the secondary market, with strong interest in studios and one- to two-bedroom apartments in Business Bay, Bluewaters Island, Downtown, Dubai Harbour, and Jumeirah waterfront communities such as Port de La Mer. Most deals fall within the AED 1 million to AED 3 million range, while prime and waterfront assets typically reach AED 4 million to AED 6 million, and ultra-luxury homes exceed AED 40 million.
One of Whitewill’s standout recent deals in Dubai was the transfer of a duplex penthouse at Bluewaters Residence for AED 90 million. Spanning 875 sqm, the property includes a private terrace, private pool, and panoramic sea views, reflecting continued interest in rare trophy assets in prime waterfront locations. The agency also advised on the acquisition of an ultra-luxury villa at Signature Mansions on Palm Jumeirah for AED 41.9 million. It also shows that buyers remain willing to commit to exceptional homes that combine scale, privacy, and long-term value.
Abu Dhabi’s branded focus
In Abu Dhabi, the structure is more concentrated and largely driven by off-plan activity, with demand centred on Yas Island and particularly on branded projects. Activity there is more heavily weighted toward villas and larger units, alongside select two- and three-bedroom apartments, with most deals falling between AED 3 million and AED 7 million.
Whitewill completed multiple placements at Manchester City Yas Residences by Ohana in Abu Dhabi with a combined value exceeding AED 30 million, reflecting the more concentrated structure of the capital’s market, where activity is centred on the primary segment and focused on villas, larger units, and concept-driven developments on Yas Island. The project itself recorded over $1.6 billion in sales within 72 hours, making it one of the fastest-selling launches in the emirate’s history, while Whitewill secured over $8.7 million in activity within the first days of sales, including multiple off-plan villas. This level of interest highlights the continued appeal of projects that combine strong legal protections, clearly defined delivery structures, and internationally recognised branding.
Stable outlook for 2026
This momentum is driven by experienced, financially stable buyers with a more analytical and long-term approach to real estate investment. The most active segments include investors focused on capital preservation and stable returns, end-users and residents purchasing for lifestyle and relocation, and opportunistic buyers targeting discounted secondary assets in Dubai. Whitewill is also seeing strong interest from European, Indian, and Asian buyers, alongside UAE-based expat professionals in finance and healthcare purchasing for personal use or long-term investment. Compared with previous periods, buyers are paying closer attention to legal protection mechanisms, developer reliability, contract structure, and the long-term value of the asset.
In the near term, Whitewill expects market conditions across both emirates to remain stable, with pricing holding firms in the primary market and buyer activity continuing to centre on quality assets, established locations, and credible developers. The agency maintains a steady deal flow by supporting clients through every stage of the process with a focus on value protection and long-term returns.
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DMCC announces Ellington Properties’ flagship integrated sales center at Uptown Dubai, spanning 16,000 sq. ft. at The Atrium. The new space blends experience, sales, offices, and show units—reinforcing Uptown’s position as a connected lifestyle and real estate destination.
2 minDubai Multi Commodities Centre (DMCC) has announced that Ellington Properties will launch a flagship integrated sales centre at The Atrium within Uptown Dubai. This announcement further strengthens the district’s appeal as a connected lifestyle destination for residents, visitors and investors.
The milestone was marked by a formal signing ceremony led by Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer at DMCC and Joseph Thomas, Co-Founder at Ellington Properties, alongside Paul Ashton, Chief Property Officer at DMCC and Elie Naaman, Co-Founder and CEO at Ellington Properties, underscoring a shared vision to create elevated, customer-focused experiences within Dubai’s evolving real estate landscape.
Spanning over 16,000 square feet, the new facility is curated as an immersive and welcoming visitor environment designed to enhance the customer journey through three interconnected components:
- Experience Centre – an interactive brand environment featuring curated displays and multimedia elements that bring developments to life
- Sales Centre – a client engagement hub for consultations, project presentations and personalised discussions
- Office Space – supporting operational and administrative functions
- Show Units – two fully designed residences offering a tangible experience of Ellington’s design, layouts and materiality
Together, the four components create a seamless ecosystem for meaningful client engagement within a vibrant lifestyle setting.
Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC, said: “The launch of Ellington Properties’ integrated sales centre at Uptown Dubai marks another important milestone in the district’s ongoing development. Spanning 16,000 square feet at The Atrium, this flagship facility strengthens Uptown’s position as a destination of choice for leading real estate and customer-facing businesses seeking visibility and a high-quality environment in which to engage with clients. Uptown Dubai is designed to bring together commercial, residential, and lifestyle elements within a single, integrated district. As we continue to expand the offering across office space, retail, hospitality, and the public realm, we are creating a destination that supports business growth while enhancing Dubai’s broader value proposition as a global investment hub.”
Joseph Thomas, Co-Founder, Ellington Properties, added: “Uptown Dubai offers the energy and connectivity that aligns with how we want people to experience our brand. As a growing hub that brings together retail, dining and lifestyle experiences, it provides the right setting for what we’re creating. This new centre goes beyond a traditional sales environment; it’s a space where people can truly understand how we design, how we think, and how our communities come to life. We wanted to create an experience that allows visitors to engage with our developments in a more intuitive, human way, where projects are not just presented but genuinely experienced.”
Strategically located within Uptown Dubai, The Atrium is emerging as a central lifestyle hub designed to bring together retail, dining and visitor experiences within a contemporary urban setting.
This latest milestone reinforces Uptown Dubai’s continued evolution as a vibrant, integrated destination, becoming a natural choice for customer-facing businesses seeking strong footfall and easy accessibility.
Many of the most-important events have slipped from our collective memories. But their impacts live on.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Abu Dhabi real estate is getting smarter. Investors are moving away from off-plan hype and doubling down on ready, income-generating properties—prioritizing stability, steady returns, and long-term value.
2 minAbu Dhabi real estate market’s current trends indicate a preference for completed, income-generating assets over more speculative opportunities, says a new report.
Investors placing greater weight on asset quality, risk management, and income visibility this year, said a report based on data from Driven | Forbes Global Properties, a leader in the UAE’s luxury real estate market.
Increased activity in ready properties through 2025 had already signaled this direction, and a tightening supply pipeline, combined with sustained demand in established communities, is expected to support continued price stability and reinforce this shift towards fundamentals-led investment, it said.
The company released the report, marking the official opening of its new Abu Dhabi headquarters.
The data from its Abu Dhabi 2025 report and Q1 2026 observations, said in 2025, total real estate transactions reached AED94 billion in the first nine months, with volumes increasing 48 percent year-on-year. Foreign direct investment by individuals totaled AED6.2 billion over the same period, with capital inflows from 97 nationalities.
Residential prices grew approximately 52 percent in off-plan properties and 39 percent in ready units between 2021 and 2025, while gross rental yields reached 7.4 percent.
Early 2026 activity suggests the market is building on that base but shifting in character.
Commenting on the data, Abdullah Alajaji, CEO of Driven Properties, said: “The 2025 data reflects the strength of the market, and our decision to establish a dedicated presence in Abu Dhabi aligns with that momentum. What we’re seeing in early 2026 is capital becoming more selective, with investors prioritizing assets that deliver visible income and long-term value. This points to a more mature and disciplined market environment, which Abu Dhabi is well positioned to support.”
Abdallah Alhusari, Director of Abu Dhabi Branch at Driven Properties, commented: “The opening of our new office reflects our strategic commitment to Abu Dhabi and its long-term growth trajectory. The capital is attracting a high-quality investor base that values stability, strong planning, and sustainable growth, and having a dedicated presence on the ground allows us to serve that demand more closely while contributing to the next phase of Abu Dhabi’s real estate story.”
In expanding to Abu Dhabi with a new branch, Driven Properties reflects its broader strategy of deepening its footprint in key growth markets across the UAE while continuing to strengthen its advisory capabilities for investors, developers, and end users.
The company’s findings were presented during a market briefing by Abdullah Alajaji, CEO of Driven Properties, Abdallah Alhusari, Director of Abu Dhabi Branch at Driven Properties, and Omar Shehata, Head of Broker Management at Aldar. The session was attended by media, industry stakeholders and distinguished guests.
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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
Recent regional developments are weighing on sentiment, not fundamentals, in the UAE property market, with activity slowing but demand holding steady. Off-plan continues to drive transactions, leasing is stabilizing, and buyers are becoming more selective, as price adjustments reflect a market correction rather than distress. The shift signals a more measured, strategy-led phase shaped by uncertainty—but not weakened demand.
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betterhomes says recent regional developments are impacting sentiment rather than fundamentals in the UAE property market, with activity slowing but underlying demand remaining intact.
Speaking during a market update webinar hosted last week, betterhomes’ leadership team, including its CEO, Head of Off-Plan and Capital markets, and Head of Leasing, said recent geopolitical events should be understood as a short-term pause in decision-making rather than a structural shift in the market.
The disruption has slowed decision-making, but not derailed the UAE property market, with off-plan continuing to drive activity, leasing demand beginning to stabilize, and buyers becoming more selective.
While transaction volumes softened in March, this was attributed to a combination of geopolitical and short-term factors, including Ramadan, Eid, school holidays and recent weather-related disruptions, rather than a deeper change in market direction. Daily life and business activity in Dubai remain largely unaffected, with the market response described as measured rather than disruptive.
Off-plan continues to underpin market activity, accounting for approximately 70 per cent of total transactions over the past 12 months. The segment remains aligned with Dubai’s long-term growth agenda, with buyers continuing to favor newer developments, stronger locations and higher-quality product.
Across the market, buyer behavior is becoming more selective, with increased focus on value, positioning and long-term potential. Asking prices have adjusted by approximately 13 per cent, reflecting a market correction following a sustained period of growth rather than signs of distress.
In the leasing market, enquiries declined by around 40 per cent in early March before showing signs of stabilization, indicating a short-term pause rather than a sustained drop in demand. At the same time, an increase in accidental landlords has added supply, contributing to a more competitive rental environment.
betterhomes said the current phase reinforces the importance of strategy, pricing discipline and professional guidance, particularly as the market transitions into a more considered and selective cycle.
The message from the webinar was clear: uncertainty has reshaped behavior, not demand, placing greater emphasis on informed decision-making and realistic expectations.
Two coming 2027 models – the first of the “Neue Klasse” cars coming to the U.S. early next year – have been revealed.
Interior designer Thomas Hamel on where it goes wrong in so many homes.
Jeddah’s residential market hit a record in 2025, with 30,500 transactions worth SAR36.6bn, while Dammam emerged as a fast-growing, affordable hotspot and Riyadh slowed amid affordability pressures. Long-term demand remains supported by population growth and Vision 2030, with supply and reforms set to drive market recalibration.
3 min
Residential property sales in Jeddah set a new annual record, with 30,500 transactions collectively worth SAR36.6 billion (US$9.75 billion) in 2025, says real estate advisory and property consultancy, Cavendish Maxwell.
Total sales values rose by almost 15.4% year-on-year in Jeddah, where the average transaction reached SAR1.2 million (US$320,000), according to Cavendish Maxwell’s 2025 KSA Residential Real Estate performance report.
Dammam – the rapidly emerging property hotspot in KSA’s Eastern Province – secured sales worth SAR10.7 billion (US$2.85 billion) across 9,500 transactions last year – an increase of almost 30% in values and 19% in volumes.
In Riyadh, buyers purchased 56,600 residential units in 2025, with a total sales value of SAR96.2 billion (US$25.65 billion). While Riyadh’s average transaction value reached a new high of SAR1.7 million (US$450,000), sales declined 31% compared to 2024.
Siraj Ahmed, Director, Head of Strategy & Consulting at Cavendish Maxwell, said: “KSA’s three major residential markets – Riyadh, Jeddah and Dammam – delivered contrasting performances in 2025. Jeddah showed resilience with its highest sales volumes for several years and is expected to maintain stable growth in the future. Dammam, where property is more affordable compared to other cities, was the standout performer and is poised for sustained growth supported by competitive pricing and robust economic activity in the region.
“In Riyadh, affordability constraints and elevated financing costs led to a decline in purchasing power and buyer activity. Although transactions were down year-on-year, population growth, urbanization and housing initiatives should support long-term market demand. We expect a recalibration of the market as new supply, the 5-year rent freeze and White Land Tax reforms make property more competitively priced and lead to a recovery in market activity.
“External factors including oil market volatility and geopolitical tensions of course warrant close monitoring, but Saudi’s residential market remains well positioned, supported by strong demographic drivers, ongoing infrastructure investment and a continued commitment to Vision 2030.”
Inventory and future supply
Riyadh’s residential supply continued to expand last year, when 13,000 new units came to the market bringing the total inventory to 1.93 million. Around 63,000 homes are scheduled for completion in 2026 and 2027, but actual deliveries could be lower, as was the case in 2025.
“The expansion in supply is further supported by the recent rise in White Land Tax, which encourages landowners to develop empty plots of land and accelerate delivery timelines,” said Ahmed. “The full impact of this reform will likely materialize through this year and beyond, with the gap between demand and supply gradually narrowing, in turn easing price pressure and enhancing affordability.”
Jeddah’s residential property inventory is now just under 1.1 million, after the completion of 4,000 units last year. The city has a pipeline of 18,000 new units this year and another 22,000 in 2027, by which time total residential stock is projected to reach 1.14 million. However, as seen in Riyadh, actual completions may fall short of original forecasts.
Dammam delivered 500 units last year, bringing its total to 430,000. Around 15,000 new homes are expected by the end of 2027. The city’s residential sector is expected to become even more competitive, giving buyers more choice and better bargaining power
Sales prices and rental rates
Property prices in Riyadh rose last year, with apartments reaching SAR6,245 (US$1,713) per square meter and villas SAR5,640 (US$1,500), an increase of 6.6% and 9.7% respectively. There were similar hikes in the rental market, with apartments up just over 10% and villas 9.6%. The 5-year rent freeze, introduced last September to address affordability concerns, led to early signs of rent moderation in Q4.
In Jeddah, apartment prices increased by 1.2% to SAR4,385 (US$1,170) per sqm, with villas up 3.2% to SAR5,185 (US$1,382). The rental market saw a mixed performance: the average cost of leasing an apartment jumped 4.7%, while villa rents were down by 0.7%.
Over in Dammam, apartment prices rose 5.2% compared to 2024 with villas up 2.8%. Apartment rents were up 4.1% and villas 2.1%.
Saudi Arabia’s new foreign ownership law
KSA’s new foreign ownership law, introduced in January, allows non-Saudi individuals and companies to invest in Saudi real estate.
The changes represent a strategic recalibration of KSA’s approach to foreign investment. By clearly defining who can buy, where, and under what conditions, KSA has transformed its real estate market from a restricted asset class into a legitimate investment destination.
Historically, non-Saudi residents could buy property under a restrictive framework, typically limited to one residential unit and subject to regulatory approval. Now, non-Saudi residents, non-residents, and premium residency holders can acquire property within designated zones. Outside these areas, ownership is limited to residents, who are generally allowed one property for personal use. In Makkah and Madinah, ownership remains tightly controlled and largely limited to Muslims under specific conditions, in line with religious and regulatory considerations.
Saudi companies with foreign shareholders can own real estate, but their eligibility is governed by regulations aligned with the Capital Market Authority, meaning listed companies can participate subject to compliance. Unlisted Saudi companies generally have more flexibility, including acquiring real estate for operational needs such as staff housing or business activities.
New research suggests that bonuses make employees feel more like a mere cog in a wheel.
Following the devastation of recent flooding, experts are urging government intervention to drive the cessation of building in areas at risk.
A Tuscan-style mansion in Newport Coast has sold for $30 million, with its multi-level infinity pool and ocean views at the center of the deal. The 13,206-square-foot property features luxury amenities including a private theater, glass-walled spaces, and a lower-level lounge illuminated by the pool above, highlighting continued demand for ultra-prime real estate along California’s coastline.
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A wraparound multi-level pool with ocean views is the star of a stone Tuscan-style mansion in Newport Coast, California, that just sold for $30 million.
Not that the property itself is anything but spectacular. The rugged 13,206-square-foot mansion stands on a half-acre lot on Pelican Point Drive, featuring stone arched loggia, brick-laid barrel ceilings, a glass-walled breakfast room, a theater room with hand-painted murals and a cavernous lounge lit by the blue waters of the lower pool outside, according to a video listing of the property.
The upper-level main pool is encased in a stone outer wall and hugs the house on two sides, fronting the covered patio that extends from the home, with a bridge that crosses to a staircase leading to the lower deck. It also makes for a great diving board.
The ocean-facing side of the pool has an infinity edge that drops to a second, lower-level pool surrounded by a flagstone deck. That pool shares a wall with the below-grade lounge, with three aquarium-like windows that illuminate the billiards table, speakeasy bar and adjacent wine cellar.
The property first came to market in July 2025 asking $49.998 million with brothers Josh Altman and Matt Altman of Douglas Elliman, who were not available to comment. The price was cut several times and it was asking $31.88 million when it went into contract in February. The deal closed in the final days of March.
The sellers are the heirs of the owners, who purchased the home in 1993, according to records accessed through PropertyShark. They could not immediately be reached for comment.
The buyers could not immediately be identified.
The home is part of the Pelican Crest community south of Newport Beach in Southern California and was completed in 2003. The property also includes a koi pond and Venetian fountain at the entrance, a five-car attached garage, a private guest house, old-growth olive trees and a shaded platform for outdoor dining or yoga.
The views stretch from Newport Harbor to Catalina Island off Los Angeles along a full stretch of California coastline illuminated by city lights.
Many of the most-important events have slipped from our collective memories. But their impacts live on.
Dubai Investments has broken ground on Al Vista in Meydan Horizon, a major mixed-use development by its subsidiary DIR, featuring residential, commercial and retail components, with construction now underway and completion targeted for Q1 2028.
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Dubai Investments breaks ground on Al Vista, its landmark mixed‑use development in Meydan Horizon.
Developed through its wholly‑owned real estate subsidiary, Dubai Investment Real Estate (DIR), Al Vista is a large‑scale mixed‑use development comprising residential, commercial and retail components within a unified masterplan.
The ground‑breaking ceremony was held in the presence of Khalid bin Kalban, Vice Chairman and CEO, Dubai Investments, Obaid Salami, General Manager, Dubai Investment Real Estate along with other senior representatives and the contractor for the project.
As part of the milestone, DIR also signed the main construction contract with JV Hourie Paramount appointing the contractor to deliver the project in line with the approved execution plan.
Commenting on the ground-breaking, Obaid Salami, General Manager of Dubai Investment Real Estate, said: “Al Vista represents an important addition to DIR’s portfolio and reflects a disciplined approach to development, anchored in quality, execution certainty and long‑term value creation. With main construction now underway, DIR is committed to delivering well‑planned, high‑quality developments in key growth locations across Dubai, positioning Al Vista to emerge as a defining mixed‑use destination upon completion.”
Located within Meydan Horizon, one of Dubai’s most sought‑after mixed‑use districts, Al Vista comprises a 39‑storey residential tower featuring 312 apartments, including one‑, two‑ and three‑bedroom units, alongside a 19‑storey commercial tower offering approximately 120,000 sq. ft. of shell‑and‑core office space, complemented by integrated retail components. The development is designed to support a connected urban environment, with a comprehensive range of lifestyle and recreational amenities serving both residents and commercial occupiers.
Construction is advancing as scheduled, with planned completion targeted for Q1 2028.
Parts for iPhones to cost more owing to surging demand from AI companies.
Alta Real Estate Development confirmed construction is progressing across its portfolio as Dubai’s property market continues to show resilience, supported by strong demand, population growth and long-term planning, with the city maintaining its position as a global investment hub despite broader uncertainty.
2 min
Alta Real Estate Development, a boutique Emirati developer shaping Dubai’s evolving skyline through a portfolio of distinctive residential projects, confirmed that construction activity continues across Alta’s portfolio, reflecting continued confidence in Dubai’s long-term growth trajectory.
The update comes as Dubai’s real estate sector continues to demonstrate resilience despite heightened regional attention in recent weeks. Dubai recorded more than $250 billion in real estate transactions in 2025, reinforcing the sector’s role as a key pillar of the emirate’s economy.
Market activity remains steady across the city, with buyer enquiries, property viewings and transactions continuing despite global uncertainty. Industry activity continues to be supported by strong population growth, long-term infrastructure investment and the strategic vision outlined in the Dubai Urban Master Plan 2040, which continues to shape the city’s development and global competitiveness.
Dubai’s real estate market has historically demonstrated an ability to navigate economic cycles, recovering from previous periods of volatility while continuing to attract international capital and long-term global interest.
Giuseppe Noto, Chief Executive Officer of Alta Real Estate Development, said: “Dubai has firmly established itself as a global hub for business and investment, and that position continues to support strong fundamentals in the real estate market. In our conversations with international owner-occupiers and long-term market participants, the city consistently stands out for its connectivity, regulatory stability, and long-term vision. That confidence is reflected not only in sustained market demand, but also in the pace at which development across the city continues to move forward.”
Alta affirmed ongoing construction across its projects, reflecting the strength, resilience, and long-term vision underpinning Dubai’s continued growth.
Mohammad Al Tayer, Deputy Managing Director at Alta Real Estate Development, added: “Dubai has always been built with long-term vision. Those of us who have grown with the city understand the strength of its foundations and the resilience that continues to shape its growth. That resilience is reflected in the continued momentum we see across the real estate market and in our commitment to keep building for the future.”
Alta Real Estate Development’s leadership is available to provide further commentary on Dubai’s real estate market, investor sentiment, and the city’s long-term development outlook.
Many of the most-important events have slipped from our collective memories. But their impacts live on.
Emaar Properties reports record 2025 performance, with property sales reaching AED 80.4 billion and revenue up 40% year-on-year, as shareholders approve a 100% dividend payout of AED 8.8 billion.
2 min
Emaar Properties PJSC (DFM: EMAAR) today held its Annual General Meeting (AGM), where the Board of Directors reviewed the company’s financial performance for 2025 and outlined its strategic priorities for the period ahead.
During the AGM, shareholders approved a 100% dividend payout, amounting to AED 8.8 billion (US$ 2.4 billion), reflecting the company’s commitment to delivering sustained value to its shareholders and in line with the dividend policy announced in December 2024. The meeting also included the approval of the auditor’s report for 2025, together with the Board’s report on the company’s activities and financial position.
Emaar’s financial results for 2025 highlighted another year of strong operational momentum and growth across its key business segments. The company recorded its highest-ever property sales of AED 80.4 billion (US$ 21.9 billion), representing a 16% increase compared to 2024. Emaar’s revenue backlog from property sales reached AED 155 billion (US$ 42.1 billion), providing strong visibility for future revenue recognition.
Total revenue for 2025 reached AED 49.6 billion (US$ 13.5 billion), reflecting a 40% year-on-year increase, while EBITDA grew by 33% to reach AED 25.6 billion (US$ 7 billion). Net profit before tax reached AED 25.7 billion (US$ 7 billion), marking a growth of 36% compared to the last year.
Emaar’s diversified portfolio continued to drive performance across its core businesses, including property development, malls, hospitality, leisure, and international markets. The company remains focused on delivering its projects as scheduled while maintaining a strong emphasis on quality, customer experience, operational excellence, and long-term sustainable growth.
Mohamed Alabbar, Founder of Emaar, said: “Our 2025 performance reflects the strength of the UAE’s leadership and the clear vision that continues to shape Dubai as one of the world’s most dynamic and trusted destinations for investment and growth. This environment enables companies like Emaar to plan with confidence, innovate, and deliver long-term value. I would also like to recognize the dedication of our teams whose commitment to quality and execution continues to drive our success.”
Looking ahead to 2026, Emaar will continue to introduce new developments and lifestyle destinations while further enhancing its operational capabilities and expanding its footprint across key markets.
The sports-car maker delivered 279,449 cars last year, down from 310,718 in 2024.
S&P: no liquidity pressure on UAE developers despite regional tensions, with manageable debt levels and strong funding positions.
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S&P Global expects no liquidity pressures on four of its rated developers amid the US-Israel and Iraq war.
The companies rated include Dubai-listed Emaar Properties, PNC Investments, Omniyat Holdings and Damac Real Estate Development.
Developers were active in the sukuk and debt capital markets to raise funds to finance land acquisitions in 2025-2026, the rating agency said in a new report.
Damac and Omniyat each issued $600 million sukuk in February and March 2026, respectively, while PNC Investments and Omniyat issued $1.25 billion and $900 million, respectively, in 2025.
“Debt maturities remain quite manageable in 2026 for the companies without the need to raise new funding,” S&P stated.
Capital expenditure (capex) needs for pure developers are limited, while investments in small community projects are expected to generate recurring revenue.
“Damac, Omniyat and PNC investments are negligible over our forecast horizon (2024-2027),” the report added.
However, Emaar has sizable, planned annual capex plans of AED10-11 billion ($2.72-3 billion) in 2026-27, much of which is earmarked for Dubai Creek Mall, the Dubai Creek Tower, the development of residential units for leasing and investments in mall assets, especially the expansion of Dubai Mall.
“We think a significant portion of the company’s investment remains flexible as some projects can still be delayed, if needed,” the report said.
Although it is still early to draw definitive conclusions, S&P expects investment decisions to be recalibrated or postponed for all developers.
Commitments for assets nearing completion are likely to proceed, but companies with flexibility will prioritise liquidity and cash flow over new
investments and land purchases, the report said.
New research suggests that bonuses make employees feel more like a mere cog in a wheel.
AI is reshaping how people buy and sell property, offering smarter insights and faster decisions—while raising concerns over accuracy and potential bias in high-stakes real estate deals.
4 min
Artificial intelligence is opening new avenues of information to home buyers, sellers, and renters. It’s changing the way people shop for real estate—for better or worse.
Consumer use of AI will shape more deals as the use of large-language model platforms such as OpenAI’s ChatGPT and Google’s Gemini become common. In a survey of 1,000 U.S. adults, Realtor.com found that 82% of respondents used AI platforms for real estate insights. The majority of those surveyed said it was a positive use of their time. (News Corp, which owns Barron’s, also runs Realtor.com through its Move subsidiary.)
The platforms are the latest in a long line of digital tools the general public can now use in a home search or sale. Information such as sale price or tax history, which today can take seconds to track down, was harder to locate before real estate data was digitized and listings moved online.
“The beauty of what AI has done is that it’s expanded that world even more,” says Ines Hegedus-Garcia, a managing partner at the southern Florida-based Avanti Way Realty. “The fear is that it doesn’t always get it right.”
That research is critical when it comes to bigger-ticket purchases, he notes. Access to more information can give a buyer or seller valuable insights—but that data can also be wrong in ways that aren’t immediately obvious or can reinforce prior assumptions. That can have real-world consequences, with thousands of dollars potentially on the line.
When I tested platforms such as Gemini and ChatGPT on places I’ve lived, they mixed verifiable facts—such as 311 complaints or air quality concerns—with incorrect or vague assertions. In one instance, one warned that noise from a bar a mile away—well out of earshot—could make it hard to sleep.
It’s not uncommon to encounter incorrect details: OpenAI pointed Barron’s to an FAQ page titled “Does ChatGPT tell the truth?” Those using the tool should “use ChatGPT as a first draft, not a final source,” the website advises. “Always verify quotes, data, technical information or references to external documents.”
In an Instagram video, celebrity real estate agent Ryan Serhant detailed a multimillion-dollar deal that was nearly derailed because an AI platform told both the buyer and seller they were getting ripped off.
“The buyer said ‘is $50 million too high?’ And so then the model leaned cautious and then obviously found reasons that it was overpriced,” he told Barron’s. “The seller said: ‘is $50 million too low?’ The model leans opportunistic and then found upside.” Both parties eventually came back to the table after Serhant’s video went viral, he says.
For its potential pitfalls, there are plenty of helpful ways consumers use AI models in property searches. “Clients are smart—they know that the final answer they get from ChatGPT is not the end-all, be-all,” says Texas Re/Max agent Todd Luong.
House hunters are using the tools to narrow down neighborhoods, price ranges, and other details before they set foot in a home, says Carrie Lysenko, chief technology officer at brokerage eXp.
“Buyers and sellers are coming to the table being a lot more educated than they used to,” she says. Proactively slimming down ones’ options saves everyone time, she adds: “It potentially goes from seeing 100 homes to narrowing down [to] 20 homes.”
AI models can be helpful for gaming out hypotheticals, such as estimating monthly mortgage payments. “A lot of AI-assisted conversations quickly gravitate toward constraints,” says Josh Weisberg, senior vice president of AI at housing technology company Zillow Group. “Things like budget and affordability are often at the center, and people commonly combine multiple requirements at once.”
A Google spokesperson noted in an email that Gemini can help brainstorm a home’s layout using floor plans, parse listings for potential issues, and estimate the return-on-investment of home renovation projects, among other uses.
Luong, the Texas agent, says clients find the tools useful for visualizing home improvement projects, including suggestions for paint colors or flooring. “Now they don’t always have to ask me for suggestions,” he says.
He also expects them to use the platforms as a sounding board to gut-check market information and prices. He has started proactively asking such models questions so he can be prepared for what they might be telling his clients, he says.
AI can be helpful in digesting large quantities of text, such as homeowners association documents, says Ben Clark, a Utah-based agent and president of the National Association of Buyers’ Agents. “It doesn’t replace your obligation or your responsibility to read through HOA documents, but you can certainly use it as a tool,” he says.
Real estate companies have been building their own AI tools. Zillow offers virtual staging tools on certain listings and integration with ChatGPT. Homes.com parent company CoStar Group recently launched a home search chat bot that users can talk to or text. Redfin, owned by the mortgage company Rocket, lets users peruse homes with help from a virtual assistant. All three stocks are down more than the Dow Jones Industrial Average this year due in part to housing market headwinds.
Gaming out a home’s fair value is one place where large platforms can leave something to be desired, agents say. Housing market conditions can change long before comparable sale information becomes public, agent Serhant notes.
Buyers and sellers should be careful what they ask for—and how they ask it. Consumers’ platform of choice can easily fill the affirming role family, or a lawyer, might have in the past, Serhant says: “The response frames assumptions based on how the question is asked, and then it optimizes to give you a coherent answer, not an objectively correct one.”
In the latter case, “there may literally be nothing wrong with the house,” says Clark, the Utah agent. “But it’s going to find something because it knows you want it to.”
Many of the most-important events have slipped from our collective memories. But their impacts live on.
After three decades in Manhattan, event designer Michelle Rago transformed a 100-year-old Sears kit house in Lambertville, New Jersey into a modern riverside retreat—lifting the entire structure six feet and redesigning it for entertaining, light, and timeless character.
4 min
After 30 years of living in Manhattan, event designer Michelle Rago decided to look beyond the city for a house, ultimately settling on Lambertville, the leafy New Jersey town where she spent part of her youth.
“I was touring the house across the street when my current home popped up on the MLS. My realtor looked at me and said, ‘Michelle, turn around…this house is now available and it’s fabulous,’” she recalled. “I literally jumped up and down, got tears in my eyes and we ran across the street. It was love at first sight. I made an offer the next day and the rest is history.”
After the excitement subsided, Rago was left with the realization that she had serious work to do.
“The house is a Sears & Roebuck kit, and over 100 years old. It had wonderful bones but the rooms were small, the flow stilted, and the addition added in the 1980s was very dated,” she said. “The windows needed to be updated and there were no porches on the back of the house which abuts the Delaware River.”
The mail-order kit house was a distinctly American architectural phenomenon from the early 20th century, when families could purchase an entire home from a catalog.
Having designed hundreds of parties in grand interiors around the world throughout her career, it was easy for Rago to envision what her new home could be.
“I wanted a nod to a London townhouse while leaning into my version of a modern Arts and Crafts feel. I wanted space to relay tranquility and be the perfect spot for entertaining,” she explained. “Apartment living never afforded me a formal dining room or a glamourous bedroom suite and bath so those desires were big drivers.”
The renovation became both a technical and emotional undertaking. The entire structure was lifted six feet and raised onto stilts, becoming the first officially lifted house in Lambertville’s history, turning the project into a community-wide event and future precedent. Rago relocated the house to a new plot of land in Lambertville, sitting directly across the river from New Hope, Pennsylvania.
To bring life to the house—which sits on land that once operated as a working farm and general store, with 150 year old trees still anchoring the property—Rago turned to Bryan O’Sullivan Studio, the London and New York City-based designers behind global luxury hospitality projects such as Claridge’s, the Connaught and Belmond.
Designed entirely around entertaining, flow and light, the house was expanded with a new formal dining room, grand entry foyer, powder room, service spaces, back porch, river-facing balcony, scullery and wine room. The staircase was re-engineered to create vertical drama, and the entire first floor was rebuilt post-lift to improve circulation. Outside, the grounds were reimagined into a park-like setting for gatherings, with a freestanding garage transformed into a late-night dance shack, a wink to Rago’s party-loving spirit.
Throughout construction, measures were taken to protect both the legacy and the landscape, including the preservation of a 150-year-old tree and the decision to return part of the property back to public use for the towpath.
“There was very little about doing a gut renovation of a 100-year-old property that could have been anticipated. The original construction and additions over the years were reflective of the times but certainly didn’t meet the state building codes of today or address the challenges of climate change. But its history is its heart, and makes every challenge worth it,” Rago said. “I am fascinated by the fact that George Washington and his troops were loitering on my stoop. I feel as if I have been entrusted with that history and that informed many of my choices.”
Mansion Global caught up with Rago, 61, who shared a more in-depth look at the renovation.
The one tip I’d offer to someone undertaking a renovation is… it is essential to stay true to what your passions are and ignore trends. Be true to what you enjoy and how you spend your time. Don’t worry if white marble is the “suggested” material for an island or if televisions are expected to be installed everywhere. Design a home and experience that is a reflection of how you spend your time.
The biggest challenge I faced during the renovation was… I did this project on my own so the biggest challenge was trusting my gut and teaching myself about the process. Navigating state codes and the reason something may not be possible takes patience and creativity.
My favorite room after the renovation is… when push comes to shove, my bedroom and bath are my sanctuary. There is nothing more indulgent than waking up on my meticulously designed bespoke bed and being surrounded by the art I have curated while the fire is cracking to my favorite music, cup of tea in hand.
The most dramatic change is… the six-foot addition that runs the length of the house to accommodate a foyer powder room, formal dining room, scullery and elevator.
The one expense I didn’t expect was… When the house was lifted I did not anticipate that the original brick and mortar on the first floor would be compromised. It was immediately apparent that the entire first floor would need to be rebuilt. Although overwhelming at the time, it did create the opportunity for me to rethink the footprint of the first floor.
I decided to renovate instead of buying a different/turnkey house because… it’s not possible for me to accept things as they are. A spec house would honestly be my worst nightmare.
The renovation ended up costing… the purchase of the Sears and Roebuck home was $825,000, and to lift it was another $100,000.
Two coming 2027 models – the first of the “Neue Klasse” cars coming to the U.S. early next year – have been revealed.
