One River Point by Ellington and Orla Infinity: two kinds of waterfront, valued two different ways

How do you value an ultra-premium property with no comparables?

Orla Infinity on the Palm is an example of the ultra-premium segment, where exclusivity and views set the price and the buyers are wealthy people acquiring a trophy asset. The segment lives by valuation rules of its own.

Direct comparables are few and transactions rare. Price is formed not by statistics but by scarcity: the first line, a limited number of units, the name of an architect or operator. For a buyer that means a wide negotiating range, and expertise of one’s own in place of an “average price per square foot”.

Start with irreplaceability — could a property with the same characteristics be built next door? If not, scarcity protects the price. Allow for a long marketing period on sale: buyers in the segment are few, and time is part of the strategy.

Check the running costs, because service in ultra-premium residences is expensive and rises over time. And look at execution: in this class a gap between the promised and the actual finish is unacceptable, so study what the developer has already handed over.

Where do such projects sit in a portfolio?

A review that places an Ellington project beside family-oriented Nad Al Sheba and the trophy Palm suggests a sensible structure: a liquid core first, then a growth bet, then exclusivity.

The liquid core is quality flats by strong developers in sought-after districts, which give even rent and a quick exit. The growth bet is early phases in promising locations. The trophy part is unique properties that hold value in a crisis but do not give a high percentage yield.

The private investor’s mistake is to assemble a portfolio only of growth bets or only of trophies. Proportions depend on aims, but the order is common to all.

A trophy asset is the end of a strategy, not its beginning. It belongs to the part of capital that will not need quick liquidity, and it is bought after the income-producing core is in place.

Abu Dhabi plays the stabiliser in this scheme. The capital’s market is less volatile and correlates more weakly with Dubai’s cycles, so looking at both emirates gives a choice between Dubai’s dynamism and Abu Dhabi’s stability inside one dependable jurisdiction.

Which contract clauses should be read before signing?

Whatever the segment, the quality of the deal is set by the contract. Check the finishing specification as an annex and not as a brochure promise, the permitted delay in handover and the consequences of exceeding it, and the rules and fee for assigning the contract.

Check also how the finished flat is measured and the price recalculated if the area differs, and the terms on which service charges accrue before you actually move in.

In premium projects add a clause on view characteristics if you are paying for the view, and one on the materials of the common areas. The lobby in the render and the lobby as built differ more often than people think.

An hour of a lawyer’s time at this stage is cheaper than any dispute afterwards.