Dubai renters look to the suburbs for good deals and more space

Renters looking for good value accommodation and more space in Dubai have been searching in older neighbourhoods and suburbs of the emirate.

A residential report by portal Bayut and dubizzle found a surge in rental demand for homes in areas including Jumeirah Village Circle, Dubailand and Akoya Oxygen, driven by increasing demand for larger living spaces and convenient access to recreational amenities.

Other communities, such as Jumeirah Lake Towers, Dubai Silicon Oasis, The Springs and Mudon sparked interest in new buyers, according to the sales analysis of the first quarter of 2021.

The report said renters interested in luxury properties have continued to favour historically popular areas, including Dubai Marina, Downtown Dubai, Jumeirah and Al Barsha.

“This year has really started off on a good note for the Dubai real estate market,” said Haider Ali Khan, chief executive of Bayut and dubizzle.

“In the first quarter of 2021, we have seen an impressive growth in demand; prices have increased in most of the key areas and the volume of transactions have also gone up.”

Affordable apartments

The report found areas with affordable apartments and villas saw a steady price-per-square-footage in sales, recording increases of up to 5 per cent.

And after a fall in prices during the pandemic, Dubai’s more luxurious neighbourhoods continue to recover, recording increases in prices of between 5 and 10 per cent overall.

Lower down payments, favourable mortgage rates, attractive prices and increasing demand for more living space as people continue to work from home contributed to the spike, analysts said.

Damac Hills offers a gross yield of more than 6 per cent. Photo: Pawan Singh / The National

Apartments in Dubai Marina fetch a gross yield of more than 6 per cent. Photo: Pawan Singh / The National

International City apartments fetch an average gross rental yield of 8 per cent. Photo: Antonie Robertson / The National

The Town Square community by developer Nshama provides investors a gross yield of more than 5 per cent. Photo: Courtesy Nshama

Properties in Downtown Dubai offer average net rental yield between 4 to 5 per cent. Photo: Chris Whiteoak / The National

Discovery Gardens offers investors the highest gross rental yield in Dubai, with apartments here averaging returns of more than 8 per cent. Photo: Pawan Singh / The National

Dubai Marina has continued to generate the most interest from buyers and investors, thanks to quality properties, waterfront views and close proximity to tourist attractions.

The average price-per-square-foot to buy apartments in Dubai Marina has increased by 5.62 per cent so far in 2021, from Dh1,152 ($313) to Dh1,217.

Popular communities of Downtown Dubai, Business Bay and Palm Jumeirah also recorded up to an 8 per cent upwards climb in sales-price-per-square-foot.

Dubai appears to be strengthening its appeal for property investors.

Of those entering the property market in January and February, 62 per cent were new investors according to the Dubai Land Department.

“Some of the sales prices for popular areas in Dubai are the highest we have seen in the market since 2014,” said Mr Khan.

“It is a good measure of the confidence that property seekers currently have in Dubai’s real estate market.”

Top neighbourhood trends in 2021

Jumeirah Village Circle, Dubai Marina and Downtown Dubai all offer plenty of attractions, easy access and family-friendly amenities.

The long-established communities continue to ride high in the list of investors and renters.

The Ranches has an abundance of facilities from tennis, basketball courts and playgrounds. Antonie Robertson / The National

A Spanish style villa in the Mirador sub-community in Arabian Ranches. All photos by Antonie Robertson/The National

The community has 15 sub-communities with 4,500 townhouses and villas

Some of the luxury villas overlook the golf course

Others have a lake view. The most affordable two-bedroom townhouses have a starting rent of Dh70,000

Nearly all of them come with very spacious and landscaped backyards

Inside a Spanish-style villa in Arabian Ranches

They have spacious bedrooms and a large-sized living area

The district is self-sustaining and has a range of facilities. It is home to the Jumeirah English Speaking School, which has primary and secondary

It has a community centre with about 20 to 25 retail outlets

The Costa coffee shop is a popular hang out spot for residents

There is also a Carrefour in the centre

Each sub-community has its own swimming pool, kids play area and park

There are tennis and basketball courts

A view of the mosque in the neighbourhood

Up-and-coming areas, such as Dubailand and Dubai Hills Estate – where a huge mall is due to open later this year – are also attracting a lot of interest in off-plan and completed homes.

Other sought-after areas for buyers so far in 2021 have been the established communities of Palm Jumeirah, Arabian Ranches, Jumeirah Lake Towers, Business Bay and Dubai Sports City.

Apartments for sale in International City proved the best option for investors looking for high rental returns, so far this year.

Analysis of Dubai property prices revealed that flats in International City offered an average return on investment of 7.61 per cent, based on projected rental yields.

So far in 2021, land department figures revealed 6,328 new residential transactions totalling Dh8.9 billion.

Inside a high-design Dh34 million Pearl Jumeirah villa

This six-bedroom villa has won a number of architecture and design awards. Courtesy Luxhabitat Sotheby's International Realty

The property is located on Pearl Jumeirah. Courtesy Luxhabitat Sotheby's International Realty

Entering the villa, you can see all the way through across the floating bridge. Courtesy Luxhabitat Sotheby's International Realty

The property is on the market for Dh34 million. Courtesy Luxhabitat Sotheby's International Realty

The home is spread across a generous 18,577 square feet, located on a 10,548 sqft plot. Courtesy Luxhabitat Sotheby's International Realty

The floor-to-ceiling fireplace sculpture is a key feature in the home. Courtesy Luxhabitat Sotheby's International Realty

All the furniture and artworks have been custom-designed for the villa. Courtesy Luxhabitat Sotheby's International Realty

The garden features a generously sized pool, lined with banzai olive trees. Courtesy Luxhabitat Sotheby's International Realty

The property boasts a floating bridge over a bottom-floor courtyard. Courtesy Luxhabitat Sotheby's International Realty

Marble is a prevalent design feature throughout. Courtesy Luxhabitat Sotheby's International Realty

The villa comes complete with its own gym. Courtesy Luxhabitat Sotheby's International Realty

An informal living area. Courtesy Luxhabitat Sotheby's International Realty

The outside space has been designed for relaxing and entertaining. Courtesy Luxhabitat Sotheby's International Realty

There is a rooftop dining area. Courtesy Luxhabitat Sotheby's International Realty

The property features vastly neutral white and natural tones. Courtesy Luxhabitat Sotheby's International Realty

Space for relaxing. Courtesy Luxhabitat Sotheby's International Realty

As well as entertaining space, the rooftop also features a home office. Courtesy Luxhabitat Sotheby's International Realty

Space to sunbathe with a sea view. Courtesy Luxhabitat Sotheby's International Realty

The villa has floor-to-ceiling windows throughout. Courtesy Luxhabitat Sotheby's International Realty

Inside the Pedini kitchen. Courtesy Luxhabitat Sotheby's International Realty

Showcasing modern architecture. Courtesy Luxhabitat Sotheby's International Realty

The property has been designed to work for a family. Courtesy Luxhabitat Sotheby's International Realty

Looking down on the property's private pool. Courtesy Luxhabitat Sotheby's International Realty

A view of the garden from inside the villa. Courtesy Luxhabitat Sotheby's International Realty