With a surge in supply and a profound transformation of rental segment, Dubai real estate market reveals its leading trends of the 2017.
It has been a year of crucial changes in the Dubai real estate market with new trends, an uptick of supply and some turbulence in the rental market. So, looking forward to sum up the year’s ultimate trends at Dubai’s real estate market, IMEX Real Estate presents Top-10 Dubai areas to buy and rent homes and commercial units in.
Overall off-plan sales this year overtook transactions at the secondary market for the first time since 2008, accounting for 62 per cent of all transactions thus far. And, at the same time, massive delivery of affordable, mid-priced apartments in peripheral areas caused an upsurge in end- buyers’ activity. Thus, with over 11,800 new residential units completed so far this year, the rental market saw a lot of changes and a shift in bargaining power from landlord to tenant.
Top 10 residential areas
Based on the Property Monitor, Emirates Living, Dubai Marina and Downtown Burj Khalifa were the most demanded areas to rent and buy properties in, mostly due to community amenities and prime location. The Palm Jumeirah stays in high demand for its luxury and beach atmosphere, while Dubai Sports City is continuously rising in the rating dubbed the most affordable Dubai’s district to rent an apartment in. Among villa areas, Arabian Ranches holds the value due to its well-developed master plan with lush greenery, open spaces and conveniences for comfort living. Business Bay has been a number one choice due to attractive rental rates and close proximity to Downtown Dubai.
Top 10 areas for secondary sales and rents
Lower priced units’ delivery in such locations as Dubailand, Dubai South, Jumeirah Village Circle and Al Furjan keeps impacting price dynamics in the ready-made properties sector, which accounted for only 38 per cent of all sales transactions so far for this year. The top 10 for this category looks usual. It is comprised with well- developed central locations such as Dubai Marina, Jumeirah Lakes Towers, Downtown Burj Khalifa, Palm Jumeirah , Business Bay and Emirates Living, popular regardless of market fluctuations, and both, with more remote areas with lower prices such as International City, Dubai Sports City, Discovery Gardens, Jumeirah Village Circle.
Top-10 areas for off-plan sales
Off-plan sales continued to drive residential market activity in the third quarter, accounting for 77 per cent of the total 8,900 transfers in Q3. Jumeirah Village Circle topped the rating in this category with prices starting at AED1,814 psqf. The rest of the list is comprised by Downtown Burj Khalifa (AED 1,795 psf), Business Bay (AED 1,756-1,982 psf), Dubai South (AED 1,323 psf), Al Furjan (AED 1,274-1,303 psqf), The Lagoons (AED 1,266 psqf) and, surely, the best City’s location of Dubai Marina with prices as low as AED 939-1,864 psqf for off-plan apartments. Mohammad Bin Rashid (MBR) City, Jumeirah Village Triangle, together with Arjan close the rating with off-plan property prices ranging from AED 930 to AED 1,375 psqf.