Dubai’s real estate market has been steadily making a comeback in recent times, aided by the progressive measures of the Government including visa reforms that promise to draw higher property investments into the Emirate. The Government has also established a higher committee for tracking and monitoring Dubai’s real estate sector while also balancing its demand and supply dynamics for a more sustainable future.
These measures and the build-up to the 2020 World Expo have helped stimulate real estate demand considerably in the Emirate. The development of mega infrastructure before the Expo and expected completion of several residential projects in this period are major sentiment boosters as well according to reports. Buoyed by these factors and also the fact that property prices are considerably cheaper now in the Emirate, real estate sales volumes and transactions have touched record highs in 2019, particularly in the second half of the year.
The momentum looks set to continue in 2020 and beyond, particularly with more attractive freebies and payment plans offered by developers and ample supply options to choose from. Additionally, real estate prices have come down to levels which have made it possible for a whole new segment of buyers to consider investing in the Dubai property market. This has naturally enhanced sales figures and revenues for the Emirate’s top real estate developers over the last few months, according to experts.
Best places to buy Dubai property in the sub-AED1 million bracket
Dubai’s property prices being at attractive levels currently, there is ample scope for investors and end-users to purchase real estate for lower than AED1 million. Studies have outlined the growing appetite for property as far as buy-to-let investors in the Emirate are concerned. These investors are forecasting annual rental yields of a whopping 10% for properties in Dubai in the run-up to the World Expo 2020. Studies have clearly shown a major market shift in Dubai from luxury units to more affordable and mid-income housing options. 41% of residential transactions observed in 2019 (37,788 units) were for homes priced less than AED1 million.
Reports also highlight the increase in buying activity from investors in segments like one bedroom units, studio apartments and so on. These are people who are buying with the 2020 World Expo in mind, particularly with an eye on future rental returns which are forecasted to rise during and after the mega event. There are several areas where properties can be purchased for AED1 million or less. Some of the highest sales figures in this category were seen in JVC (Jumeirah Village Circle) which posted 1,473 transactions in 2019 and also International City which had 1,426 transactions to its credit.
Meydan (1,079 transactions), Jumeirah Lake Towers (887 transactions) and Business Bay (976 transactions) were also amongst the most popular areas to buy property for less than AED1 million in 2019. These areas continue to be the most preferred picks for buyers at this price point. Average selling prices for units in JVC (Jumeirah Village Circle) touched AED586, 389 for 2019 as per reports. 9,044 off-plan property transactions were seen in this budget segment last year. Meydan comprised of 1,040 transactions in this category along with 812 transactions observed in case of Dubai Hills Estate.
Business Bay (786 transactions) and Dubai South (689 transactions) were also clear front runners in the category. Average selling prices for off-plan properties at Meydan City touched AED605, 777 according to reports. The secondary market had 6, 472 transactions in all for real estate units priced lesser than AED1 million last year. International City accounted for a whopping 1, 128 deals out of this tally, followed by 690 transactions seen in Jumeirah Village Circle (JVC). Al Furjan and Dubai Sports City registered 507 and 469 transactions respectively while Dubai Marina also witnessed 469 transactions for properties priced below AED1 million in 2019. Average selling prices for ready properties in International City stood at approximately AED313, 173 in 2019 as per reports. These represent some of the best places to purchase real estate in Dubai for less than AED1 million at present.