There is more curiosity in the market circles to know about the communities which are in hot demand in Dubai. The three prominent communities– Dubailand, Dubai Sports City and Jumeirah Village Circle are the new hot favorites of prospective buyers and renters as far as in Dubai is concerned.
The sale prices and rents in these communities are rising exponentially. The largest portion of future stock is expected to be delivered in upcoming areas such as Dubailand and Dubai Sports City where the demand has already escalated from buyers as well as renters.
Towards Affordable Locations
According to a leading property analyst, the International City moved up many places in the list of most searched locations for purchase of property in Dubai, in this quarter. Jumeirah Village Circle which figured 18th in Quarter 1 also jumped to 7th place in this quarter.
In leasing, Dubai Sports City tops with its ranking moving from 18th in 2012 to the 11th spot in the most searched rental communities list of Quarter 3. This is an indication that secondary locations are improving and more end users and tenants are relocating from the prime areas to affordable neighborhoods.
Hundreds of new units have been added to Dubai residential stock in Dubailand, Downtown Jebel Ali and Jumeirah Park communities in the third quarter. More fresh stock is expected to hit the market in 2015 from emerging neighborhoods such as Dubai Sports City, Business Bay and Jumeirah Village. So the demand for sale and rental properties in these communities will only grow.
Hurdles on Affordable Housing
Affordable housing in Dubai needs a serious push. But that concept does not make financial sense, says many leading developers. The words of Robert Lee, CEO of Bahrain Bay are significant. He has worked in many Dubai developments such as Dubai Marina, Palm Jumeirah and Emirates Living. For him, affordable housing is a novel concept but the hitch is that it does not add up ‘when you do the numbers’.
The problem is land prices. Land in most jurisdictions is very costly. For affordable housing the land must come free from the government so that developers can balance the construction cost accordingly. Of late the cost of construction too has gone up drastically.
As Dubai property market is an open market for all sorts of investors, property for sale in and around Dubai, evokes instant demand. And that answers the craze behind investing in property in Dubai.
It must be true that the real estate industry and planners had been stating that markets need more affordable housing than costly apartment towers. Many outlying areas and new developments are experiencing growth in demand as rising rents are pushing residents towards more affordable areas.