Paying for Lifestyle: Is the Premium Worth It?

Homes with lifestyle amenities, such as beach access, golf-course views, walkable streets or large parks, often cost more than similar homes elsewhere. Buyers are willing to pay for these features, but is the premium always justified?

Amenities that command premiums

• Beach access: Palm Jumeirah, JBR, Emaar Beachfront.
• Golf courses: Emirates Hills, Dubai Hills, Jumeirah Golf Estates.
• Walkable districts: City Walk, Downtown, Dubai Marina.
• Parks and lakes: the Lakes, Dubai Hills Park, District One.

When the premium is justified

Premiums are justified when amenities are permanent, scarce and valued by a broad range of buyers and tenants. They tend to hold value in downturns.

When it may not be

Premiums may be excessive if amenities are not yet delivered, if similar amenities are available elsewhere or if service charges are very high.

Effect on rents

Lifestyle homes typically achieve higher rents, but yields may be lower because of higher prices.

How to evaluate

Compare prices and rents for homes with and without the amenity in the same area. Consider whether you would use and value it.

Amenities that are still to come

Many new projects market amenities that do not yet exist: a planned park, a future mall, a beach club or a new metro station. Buyers should be careful about paying a premium today for features that may be delayed, scaled down or changed. Asking for written commitments, delivery timelines and evidence of progress helps. Comparing prices with similar homes that already enjoy completed amenities shows whether the premium is reasonable. In some cases, buying before amenities arrive offers good value, because prices rise once they open. In others, buyers end up waiting years. Treating future amenities as potential upside rather than certainty is the prudent approach.

Our view

Lifestyle amenities add genuine value when they are permanent and scarce. We help clients judge whether a premium is justified for their needs.