The handover of new projects is affecting sales and rental values in more established communities.
Jessica Horie, COO of Prestige Real Estate urges you to take full advantage of these opportunities while you can.
New communities pop up in Dubai regularly, but the closer to the coast the property is the more certain you have secured a good location forever for your investment.
When I moved to Dubai nine years ago, I would always hear people say: “who is going to live in all these apartments?”
Since then, the population in Dubai has grown from 1.9 million residents in 2010 to currently more than 3.2 million! Perhaps if all these ne developments hadn’t had such a strong resurgence in the meantime the Dubai would be at capacity today, but that is not what happened.
Currently, we have many new communities and developments. We have been introduced to Town Square, Creek Harbour, Dubai Hills, Dubai South and many more, which is why we’re now hearing a similar narrative with everyone talking about overflow in the market and: “who is going to live in all of these properties?”
If you are a buyer or a tenant in Dubai today you should be smiling because you’re able to either live or invest in the location of your dreams – or find accommodation at a price point that allows you to save more of your income for yourself rather than on your housing. Both are potentially viable options for you.
But how do you choose?
Buyers have options between attractive payment plans and incentive schemes from developers for off-plan properties, which are generally in the newer established communities. Or they can opt for flexible mortgage options on ready properties that in some cases are available at prices dancing around the build cost, and in prime and established communities.
This poses a tough choice for most, but let’s be honest there’s nothing to really complain about if you are in this situation. However, you do still need to make a choice.
As we all know, the golden rule of real estate is location, location, location, which is why I believe right now is the time to snap up a property in the latter of these two options – the ready properties in prime areas. Especially if it’s anywhere near the coastline such as Jumeirah Beach Residence (JBR), Dubai Marina, and Palm Jumeirah.
Property on or near the water is always more valuable than inland communities and I don’t see this changing. New communities pop up in Dubai regularly, but the closer to the coast the property is, the more certain you have secured a good location forever for your investment.
And right now is a good time to get into a high-end community at a bargain price.
Tenants, however, might have a different process in their decision making as they become enticed by shiny new developments and the promise of living in a brand new property – as well as the opportunity to live, work and play within the community while enjoying impressive amenities offered such as swimming pools and gyms, in addition to skate parks, biking paths, movie theatres and communal spaces.
Being a tenant in Dubai today offers many great options to choose from, but I would still take advantage of the affordable ones in the abovementioned established prime communities near the water.
Save the experience of the new inner communities for when the day comes that your landlord of your beachside home raises the rent to a price that is too much for you to handle.
I feel that space and affordability will always be found in the communities on the outskirts, so today why not consider taking the opportunity to enjoy the higher-end communities at a price within your budget.
All of us are ‘in’ the property market to an extent, because we all have a home. Whether you are a homeowner, a seasoned property investor or a renter, right now is a fantastic time to find a great deal in Dubai.
COO of Prestige Real Estate
Connect with Jessica Horie on LinkedIn
This article was first published in Prestige Vol. 39.