Mark Phoenix on how Sankari is redefining luxury real estate

Dubai’s property scene shows no sign of cooling off with 2024 on track to be another record year in terms of sales figures and property values.

For Mark Phoenix, CEO of Sankari, the booming Dubai luxury property market paints a picture of burgeoning demand driven by the influx of ultra-high-net-worth individuals (UHNWIs), massive infrastructure spending, and a flurry of reforms, ranging from generous income tax policies to relaxed social and liberal visa rules.

“Dubai’s allure stems from its unique blend of safety, unparalleled lifestyle, significant financial benefits, and consistently high standards, making it an ideal destination for UHNWIs,” says Phoenix. He shares that, unlike other metropolitan cities in the world, Dubai provides a secure and private haven. And the sense of comfort and security is a key factor for affluent individuals seeking a tranquil and worry-free lifestyle.

With more than 20 years of experience navigating the UAE’s dynamic property market, the Sankari family mandated Phoenix to bring their vision to life, laying the groundwork for the launch of Sankari, a pioneering developer that is redefining Dubai’s ultra-luxury property market with an impressive portfolio of upcoming projects.

“When I first met with our founder, Dr. Sankari and chairman, Mohammed Sankari, our initial discussion revolved around potential projects and my approach to them. What started as a 30-minute conversation quickly extended into a two-hour, then a two-day dialogue,” Phoenix says.

Following the meeting, he was invited to join Sankari and take on a key role in establishing the group’s ultra-luxury real estate business.

“Our founder, Dr Sankari, and our chairman, Mohammed Sankari, have been strategically acquiring land for real estate development across Dubai and beyond for many years. Thanks to their foresight, we now hold prime locations that enhance our portfolio and development potential.”

Dubai’s ultra-luxury property market has seen explosive growth with sales of properties priced over $10m reaching a record 436 transactions in the 12 months through June, according to Knight Frank, a significant increase from 23 transactions in 2019. The city’s premium real estate market remains strong, with a 41 per cent year-over-year increase in transactions, according to Cushman & Wakefield Core.

An influx of HNWIs since 2020, with a record net inflow of 6,700 millionaires expected by the end of 2024, has transformed Dubai into one of the world’s hottest markets for prime real estate. But despite a steep increase in prices — 17.4 per cent last year by one estimate — the city offers more value for money than most global cities.

A force to be reckoned with

Dubai’s red-hot real estate market is defying predictions of a slowdown, signalling that the global hub for business and tourism has broken free from its boom-and-bust cycles. With 40 years of rich business heritage and a history of leading lifestyle innovations, Sankari is betting on the emirate’s booming luxury real estate market, with homes starting at nearly $11m.

Sankari, which opened a new chapter in the group’s history, is in the process of awarding contractors for its first flagship twin residential tower in Marasi Marina, Dubai Water Canal. The luxurious residences are scheduled to be completed by the end of 2027.

“We acquired a plot in Marasi Marina in 2018, and since then, we’ve expanded significantly. Currently, we have several plots in Palm Jumeirah, where we are developing 18 large, signature villas that are situated on some of the most exclusive plots, including the tip of Palm Fronds,” Phoenix shares.

“We are fortunate that Dr Sankari and his family had the vision and resources to make these investments years ago. Beyond Palm Jumeirah, we are working on a project in Al Furjan, where construction has begun on 144 standalone villas.”

Phoenix recalls that when he joined Sankari in February 2023, the focus was on determining the best use for the family’s extensive real estate portfolio. “The goal was to create a strategic plan that would maximise the value of these properties,” he adds.

Regent Residences Dubai, Sankari Place features 63 ultra-luxury homes, each occupying an entire floor and boasting a private pool on its terrace. The crown jewel of the project is the 40,000-square-foot penthouse, complete with its own private drop-off, lobby and parking garage.

Perched on a prime waterfront peninsula, the exclusive development offers breathtaking views of Dubai Creek and the iconic Downtown Dubai skyline. Located in the heart of the city, it provides easy access to major business and entertainment hubs and convenient connections to Sheikh Zayed Road and Al Khail Road.

Where luxury meets sustainability

From an architectural perspective, the stunning dual tower design will feature an exclusive collection of full-floor residences, each with a private swimming pool and expansive outdoor living spaces. The cascading architectural design is conceived for opulent living.

The property will feature top-of-the-range facilities, including a world-class health and fitness centre, a golf simulator, a cinema, and a gaming room. Sports enthusiasts can enjoy tennis and padel courts, while lovers of fine dining will have access to a private dining room, a cigar lounge, and a cellar. We recognise the importance of having access to business-related facilities, so we have designed a business lounge with meeting rooms.

“Designed by the renowned London-based architects, Foster + Partners, Regent Residences Dubai, Sankari Place is designed with a holistic approach to wellbeing – for the environment and for its residents,” says Phoenix.

He explains that a key consideration in the initial design phase of the luxury residency was the sun’s path. “Given the region’s intense heat, managing solar radiation is crucial for maintaining comfortable interiors. By strategically implementing shading devices, selecting energy-efficient glazing, and optimising the building’s orientation, we’ve significantly reduced the reliance on air conditioning.”

Phoenix notes that by positioning living spaces away from direct midday sunlight, Regent Residences Dubai, Sankari Place minimises cooling needs, resulting in comfortable and energy-efficient apartments.

Similarly, Sankari analysed wind patterns to optimise the building’s design for natural ventilation, further reducing its environmental impact. Phoenix stresses that this meticulous approach to design has been evident from the project’s inception, ensuring a thoughtful and efficient outcome.

“The building is LEED Gold-certified and adheres to WELL standards, underscoring our commitment to sustainability and wellness. It’s our responsibility to future generations to minimise our environmental footprint,” he adds.

On the technology front, Sankari seeks to enhance usability and improve daily living without unnecessary complexity. Phoenix believes that while home automation can undoubtedly be convenient, it must be intuitive and user-friendly.

“Technology should simplify life, not complicate it. We’ve all encountered hotels with overwhelming technology that makes even simple tasks, such as closing curtains, a frustrating ordeal. Our goal is to avoid such gimmicks and prioritise practical applications,” he explains.

Playing by a different set of rules

Dubai has emerged as a prime destination as the world’s affluent individuals seek to diversify and secure their assets amid geopolitical volatility. The city now boasts the highest concentration of wealthy individuals in the Middle East, with a collective net worth exceeding Dhs3.7tn.

The city’s allure for global HNWIs continues to grow, and with it, the demand for its most coveted real estate. The insatiable appetite for luxury homes in the city has outstripped supply for ready-to-move-in inventory, fuelling the growth of the off-plan market.

Historically, property developers have followed a cyclical model, where sales generate the cash flow necessary to finance construction. However, Phoenix says Sankari pays with a different set of rules.

“We’ve adopted a unique approach, prioritising construction over sales. This means we’ll complete the building process, even if all units aren’t sold upfront,” Phoenix explains while noting that with the design phase finished, the focus is now on construction and delivery according to our planned timeline.

“Unlike other developers, we’re a financially conservative company that operates without leverage. We fund our projects entirely with equity, avoiding external financing. We’re currently appointing contractors and initiating the construction phase.”

Phoenix stresses that while Sankari’s innovative approach presents unique challenges, it offers significant advantages. “With no reliance on external funding, we’re able to prioritise quality and timely delivery. This unwavering commitment to excellence drives our team to push boundaries and achieve exceptional results,” he adds.

Sankari’s growth strategy currently centres on expanding its portfolio while maintaining a steadfast focus on execution. Phoenix says the company is “currently immersed in the development of Regent Residences Dubai, Sankari Place, and we’re also undertaking the construction of high-end villas on Palm Jumeirah, in addition to exploring opportunities in other ultra-luxury villa communities.”

“While we remain agile and open to new opportunities, we’re cautious to avoid diluting our focus. It’s tempting to acquire land and launch new projects continuously, but many developers fall into the trap
of neglecting existing commitments,” adds Phoenix.

Meanwhile, the diminishing supply of strategic development land plots in Dubai is driving up prices and creating ‘bidding wars’, adding to the buoyancy already fuelled by the city’s residential market.

“Land is a finite resource, and the recent Dubai boom has led to increased competition and rising prices. While other developers resort to complex financial arrangements such as joint ventures or payment plans, our strong financial position allows us to acquire land outright,” says Phoenix.

He emphasises that Sankari prioritises quality and long-term value rather than pursuing rapid growth. The property developer’s goal is to build a legacy and establish a strong reputation in Dubai’s ultra-luxury property sector.

“By putting our name on our projects, we’re committing to the highest standards of excellence. This is a significant step for the Sankari family, and we are determined to deliver projects that reflect our commitment to quality and innovation,” says resolute Phoenix.

A global outlier

Phoenix is optimistic about Dubai’s luxury property market, recognising the city’s emergence as a global luxury hub.

The high-end property veteran’s confidence is not misplaced. Dubai’s strategic vision and significant government investments in world-class infrastructure have created a dynamic environment that attracts both residents and visitors, driving the growth of the luxury property market.

The emirate ranked 30th among global cities for rental value growth and 5th for capital value growth in the first half of 2024, according to Savills’ latest Prime Residential World Cities Index.

Phoenix believes that a key driver of Dubai’s luxury market is its commitment to providing a secure and prosperous lifestyle. “The city’s tax-efficient environment, coupled with its stable political and economic climate, makes it an attractive destination for high-net-worth individuals and businesses. Its efficient and well-regulated business environment, coupled with its strategic geographic location, has positioned it as a global trade and logistics hub.”

He emphasises that Dubai’s unparalleled reputation for security and privacy allows affluent individuals to live and invest without fear of scrutiny.

“The city’s commitment to providing world-class infrastructure and services is another key factor driving its appeal. Emirates Airline, a symbol of Dubai’s luxury and efficiency, sets the standard for global travel,” says Phoenix.

“Dubai’s commitment to excellence extends to all aspects of the emirate’s offerings, from its luxurious hotels and shopping malls to its state-of-the-art healthcare facilities and educational institutions.”
Dubai’s high-end property market offers a diverse range of options, catering to various preferences and lifestyles. Phoenix says that established neighbourhoods such as Palm Jumeirah and Downtown Dubai remain highly sought-after for their iconic status and luxurious amenities.

However, he notes that emerging destinations such as the Marasi Marina are gaining significant attention for their prime coastal locations and modern developments.

“While traditional villas offer a sense of privacy and exclusivity, there’s a growing trend towards high-rise luxury apartments, particularly among international buyers,” Phoenix shares while explaining that these vertical villas provide the convenience and amenities of a serviced residence, combined with the spaciousness and luxury of a traditional villa.

With a portfolio valued at approximately Dhs7bn, Phoenix is thrilled to be part of Sankari’s growth journey. “The first five years of a startup are always the most exhilarating as you build a team of passionate, versatile individuals who are willing to go the extra mile,” he adds.

Over the past 18 months, Sankari has cultivated a skilled team of seasoned real estate experts. Phoenix says the team’s deep understanding of Dubai’s real estate market is an asset to the luxury property developer.

Dr. Sankari’s vision for the luxury property developer extends beyond mere profit and growth; he shares while noting that “the family’s decision to affix their name to their first tower project reflects their unwavering commitment to excellence”. With the luxury property developer’s inaugural project now in the construction phase, Phoenix closes by emphasising Sankari’s commitment to preserving its founder’s legacy by contributing to Dubai’s skyline.

Read: IHG, Sankari to debut standalone Regent Residences in Dubai