Bullet-Point Property: Dubai No. 75

Data published recently for The Arabian Travel Market 2018, which takes place tomorrow at the Dubai World Trade Centre, shows that almost 25 million Europeans will travel to the GCC between now and 2020, that’s four million more travellers than 2015–2017.

The UAE and Saudi Arabia continue to be the preferred GCC destinations for European visitors; together they are on track to welcome 81 percent of the projected business and leisure travellers

While these tourists have previously travelled to the GCC for its luxury resorts, the growing numbers of millennial travellers, middle-class tourists and corporate travellers on a budget, are slowly changing traditional market trends, as is the growth in affordable, mid-market hotels combined with an increase in low-cost flights

We are also witnessing a similar shift in property purchasing trends over the last couple of years and now according to the Affordable Housing Institute, 82 percent of transactions in 2017 were below AED2m or GB£ 400k, and almost half – 47 percent – were below AED1 million (GB£ 200k). Most of the transactions – 85 percent – were for apartments, a clear choice for budget-conscious residents and market-savvy investors.

This week’s property conversations have included: -

  • Belgravia Heights 1 is still the hot news for us and it won't be long until we see the 2nd tower released. We have some apartments exclusively including studios from AED 514k, one bed from AED 760k and two beds for a little over AED 1m. If we compare rents achieved in this developer's previous local building, then we should expect gross yields as high as 10% when its completed in 2020. View the comprehensive guide here

 

  • I mentioned Tilal al Ghaf last week, and the launch happened on Sunday when we got to hear the prices for the first phase of these 6,500 freehold homes. Luxury Villas start at AED 5.9m, Bungalows at AED 6.5m and the collection of 40 five and six bedroom ultra-luxury villas along the banks of the lagoon range from 12 to 18m.

 

  • LIV Residences in Dubai Marina is selling well,  not surprising as its one of the last high quality and well-designed waterfront properties in the Dubai Marina. Good sized one beds from AED 1.2m, two beds from AED 1.9m and the three beds from AED 2.9m and all with access to a 5-star beach resort.

 

  • Studios starting at AED 375k (GB£ 72k) in Jumeirah Lake Towers are bound to attract lots of interest from investors, and by all accounts, the pre-sales have been brisk however I have concerns over the sheer number of apartments in one building with 2,500 units in total, of which 1,500 are studios, and the remainder are equally split between one and two beds. Rents will not be as high as some may suggest due to the supply and although the location is excellent, the price should not be the main buying reason for its always quality that brings in the numbers.

 

  • A combination of location, low price and quality can still be found in The Collective at Dubai Hills Estate. These complete in June 2021 and the demand from potential tenants and buyers is expected to exceed supply for these unique apartments, a two bed from Emaar starting at AED 1m in the centre of Dubai across from the new Mall must be worth consideration for an investor. 

 

Have a great day and we hope to see you very soon

With best regards from Steven and the Elite Sales and Rental Team

 

PropertySteven LeckieProperty Watch, property prices, property investment in Dubai, buy property in Dubai, Dubai property market, UAE propertyComment