Dubai Land, a neighbourhood community with major attractions including Sports City and Motor City besides Remraam and Dubai Production City (IMPZ), has emerged as a hot favourite among both tenants and home buyers during the period from January to August, according to dubizzle Property, a UAE-based property portal.
Besides Dubai Land, the three most 'in demand' areas for rental apartments included Dubai Marina and Jumeirah Lake Towers (JLT), stated dubizzle Property, while revealing insights into Dubai's most popular areas based on interest from property seekers, comparing prices during the eight-month period.
The expat and investor favorite, Dubai Marina, saw an average decrease of 3% in rental prices for one-, two- and three-bed apartments, bringing the average annual price to Dh70,000, Dh100,000 and Dh159,000 ($19,054, $27,220 and $43,280) respectively.
JLT witnessed a similar trend, with an average decrease of 4%. Prices for one-bed apartments in the area experienced the biggest decrease of 9%, averaging Dh60,000, whereas two- and three-bed units did not witness a significant change, with a small fluctuation of -1% -bringing the average cost to Dh85,000 and Dh109,000 respectively.
Dubai Land was favoured by those interested in property for rent, contrary to last year’s report, stated dubizzle Property in its report.
Over the past 8 months, prices decreased by an average of 14%, bringing one-, two- and three-bed prices down to Dh41,000 Dh58,000 and Dh87,000 respectively.
When looking at the most popular areas for villas for rent, Dubai Land received increased interest from property seekers. Price trends reveal that the average annual rent for two-, three- and four-bed villas in the area is Dh85,000, Dh110,000 and Dh140,000 respectively.
According to the report, Mirdif and Jumeirah Village Circle were among the most popular villa communities, however, these have not shown a significant fluctuation in prices in comparison with Dubai Land.
Mirdif prices have remained the same throughout 2019 so far, averaging at Dh75,000 for two-, Dh100,000 for three- and Dh110,000 for four-bed villas.
Jumeirah Village Circle three- and four-bed villas are now priced at an average of Dh100,000 and Dh115,000 respectively, stated the Emirati property portal.
On the most popular areas for sale, dubizzle Property said Dubai Marina and Dubai Land were the firm favourites for those looking at user interest in sale of one-, two- and three-bed apartments. Prices in these two areas softened by an average of 9% and 10% respectively from January to August 2019.
Downtown Dubai was among the top five most desired communities for one- and two-bed apartments, with prices now averaging at Dh1.4 million and Dh2.4 million respectively.
According to the report, JLT and Jumeirah Beach Residences (J-bed) received increased interest for larger two- and three-bed apartments, reinforcing the popularity of prime areas among investors as they become more accessible.
While the data reflects a clear interest in apartments for sale in prime locations, demand for villas was predominantly for newer areas including Dubai Land (average decrease of 11% in prices from January to August 2019) and Jumeirah Village Circle (average decrease of 17%).
Home buyers, however, were interested in two-, three- and four-bed units in the established Emirates Living communities (The Springs, The Meadows, The Lakes and Emirates Hills) with prices only declining by an average of 3% over the past eight months, said the report.
The average price now stands at Dh1.4 million for two-, Dh2.4 million for three- and Dh4.4 for four-bed villas, it added.
"The rental and sale price fluctuations really reflect the correction of the property market. With supply levels in newer areas going up, and communities in prime locations becoming more affordable, tenants and home buyers are increasingly spoilt for choice," remarked Matthew Gregory, the director of dubizzle Property.
"This trend is likely to continue for the next 12-18 months, as supply levels continue to increase with 124,000 new units expected to enter the market by 2021. It will take some time for existing and new supply to be absorbed completely," noted Gregory.
"The upcoming Expo 2020 and positive government initiatives will contribute to the stabilization of the market in the foreseeable future," he added.-TradeArabia News Service
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