How is the real estate market developing in the Dubai Marina area?

The rapid development of the real estate market in Dubai

In this article, we will take an in-depth look at the rapid development of the real estate sector in Dubai, with a special focus on the Dubai Marina area. We will discuss the current trends taking place in this sought-after segment, as well as analyze the main audience interested in buying residential property in this area.

General description of Dubai Marina

Dubai Marina is an exclusive and luxurious area covering just 4 square kilometers, stretching along the coastline of the Persian Gulf. To the east, this district borders the famous artificial island of Palm Jumeirah, while to the west lies the new man-made island of Bluewaters Island. For ease of movement between different parts of the city, the area is separated by the Sheikh Zayed Road, making access to other key locations in Dubai more convenient.

Key water arteries

The central waterway of Dubai Marina is an artificial canal that connects to the bay in several places. This makes it attractive to yacht and cruise ship owners. It is also home to the modern Dubai Harbour, which includes the largest yacht pier in the region, capable of accommodating up to 700 vessels.

History and development

Construction of Dubai Marina began in 2003, and in a short period, more than 200 high-rise buildings were erected here. The most well-known developer of this impressive area is Emaar Properties. Within Dubai Marina, Jumeirah Beach Residence (JBR) stands out, consisting of 40 high-rise buildings and stretching along the coastline for 1.7 kilometers.

Tourist infrastructure

The area is famous for its abundance of hotels of various categories and a well-developed tourist infrastructure. There are two magnificent beaches here — JBR and Marina Beach. Nearby, there are large shopping centers, such as Dubai Marina Mall, which is conveniently located near the main road, Sheikh Zayed Road, as well as The Beach, situated right by the water on the western side of the area.

Entertainment and active recreation

Dubai Marina is known for its active resort spirit - there are plenty of restaurants, clubs, and beautifully landscaped promenades perfect for strolling. The area offers a wide variety of activities for both adults and children, including a variety of thrill rides for thrill-seekers. Those looking to tickle their nerves can try skydiving at Sky Dubai, which is located on the eastern edge of the neighborhood, or zipline from the Amwaj skyscraper on the other side of the canal.

Transportation and accessibility

At the borders of the area, there are two metro stations: Sobha Realty (formerly known as Dubai Marina and Damac) and DMCC. Inside Dubai Marina, trams and buses also operate, with the tram line running from the metro station and making stops at the beaches and Dubai Marina Mall.

The real estate market in Dubai

As for the real estate market in Dubai, it is showing confident growth rates. Thanks to the successful adaptation of the UAE economy to the consequences of the pandemic, high oil prices, increased tourist activity, and improved trade conditions, this sector continues to develop. As a result, there is active interest in purchasing housing from both local residents and international investors. The variety of luxury residential properties in well-known areas like Dubai Marina makes this market segment particularly attractive.

Conclusion

In conclusion, it can be said that Dubai Marina has become not just a symbol of wealth and modernity, but also an important part of the rapidly developing real estate market in Dubai. This area has long been a desirable place to live and invest, and it continues to attract interest from people all over the world.

Growth of the real estate market in the UAE

The residential real estate market in the United Arab Emirates continues to show impressive results, setting all new records for sales volumes. According to the analytical agency CBRE, from the beginning of 2022 to the end of July, 45,793 transactions for the purchase of housing were registered, which is the maximum since 2009. This indicates a noticeable increase in interest in this market segment.

One of the reasons for this phenomenon is the high demand from international buyers. The Expo 2020 exhibition, which took place in Dubai from October 2021 to April 2022, also played an important role in this, along with a number of new legislative initiatives aimed at attracting investors and expats.

Real estate prices

According to analytics from Asteco, the average price increase for apartments in one of the emirates was about 20% in the year leading up to June 2022, while villas rose by 26%. It is important to note that current market prices have not yet reached the record levels set in 2014.

Experts point out that there has been a growing interest in premium-class properties lately. Research by Knight Frank shows that in prestigious areas such as Palm Jumeirah, the price of villas has increased by 51% over the last 12 months and by 68% compared to the beginning of the pandemic. This is due to high buyer interest and limited supply.

Rental market

Regarding rentals, there is also a positive trend observed here. The CBRE report mentions a 23.7% increase in residential rental rates over the past year — the highest level since 2014. Among all areas, Dubai Marina stands out, where housing rents have risen by 35.7% in the last 12 months.

It can also be noted that a significant increase in rental rates was recorded at:

• On the Palm Jumeirah islands — at a level of 39.8%
• In the Downtown Dubai area - by 38.4%

Changes in legislation

The further growth of the market may be facilitated by the introduction of new legislative changes that were approved in the spring and relate to updated rules for obtaining "golden" and "green" visas. These innovations come into effect on September 1, 2022, and involve reducing the minimum investment threshold in real estate for obtaining a 10-year residence permit to 2 million dirhams (approximately $545,000).

In addition, the opportunity to obtain a residence permit will be granted to qualified specialists, entrepreneurs, and scientists, allowing them to continue their careers in Dubai.

Expected inflow of wealthy migrants

According to a report by Henley & Partners, by the end of 2022, the UAE expects around 4,000 wealthy foreigners to relocate, attracted by stable economic conditions and business opportunities.

Market dynamics in Dubai Marina

Let's take a closer look at the real estate market situation in the Dubai Marina area. Data from the Dubai Land Department shows that from January 1 to July 31, 2022, there were 4,164 registered sales transactions in this area. This figure is 19% higher than in the same period of the previous year.

This means that the share of Dubai Marina in the total real estate sales in the emirate is 12%, with the total number of transactions reaching 35,016.

Average cost of real estate in Dubai Marina

In Dubai Marina, the average price per square meter of residential property is around 2,300 dirhams (approximately 627 dollars).

The price of one-bedroom apartments in this area starts at $450,000. It's also worth noting the completed residential complex Marina Gate, which consists of three towers. It is located in close proximity to the beautiful Marina Walk and was built by the renowned company Select Group. Studios here can be purchased starting from $383,000, while one-bedroom apartments start at $430,000.

Who buys property in Dubai Marina?

This area is unique as it combines the bustling dynamics of a big city with the atmosphere of a resort. This harmonious blend attracts many people who prefer to live here. For example, young professionals working in the Downtown area appreciate the prestige of this place and the variety of entertainment options available.

Attractiveness for digital nomads and freelancers

Dubai Marina is also popular with affluent digital nomads and freelancers. This neighborhood offers all the delights of life in Dubai without leaving its boundaries. Families with children note the safe and tranquil atmosphere here, free from heavy traffic. The child-friendly infrastructure is very diverse, including many kindergartens. However, it should be noted that there are no schools in Dubai Marina itself and children need to attend British and American educational institutions located in neighboring areas such as Al Sufouh, Umm Suqeim and Al Barsha.

Real estate in Dubai Marina

Real estate in Dubai Marina is in high demand among tourists as well. In case of any changes in your plans, you can always rent out your apartment for either long-term or short-term leases. This area ranks third in Dubai for rental rate growth, and the average rental yield is between 6 to 7% per year.

Attractive aspects of life in Dubai Marina

Dubai Marina has long established itself as one of the best places to live and no longer needs additional confirmation of its merits. Among the obvious advantages of living here, one can highlight:

• access to the sea;
• magnificent beaches;
• resort atmosphere;
• high-quality real estate;
• developed infrastructure with a high level of service;
• proximity to the business centers of the emirate.

However, among the drawbacks, locals point out traffic jams during rush hours and difficulties with parking for guests.Residents can park their cars in the closed parking lots of their residential complexes.However, it can be quite difficult for guests to find public parking spaces.

Sustained interest in Dubai Marina

Despite the fact that Dubai Marina has recently partially given way to new large projects like Emaar Beachfront and Dubai Creek Harbour, interest in this area remains high. There are many fans here, especially among Russians and citizens of the CIS countries. This area is known for having a higher concentration of Russian-speaking people compared to other parts of Dubai. Thus, Dubai Marina continues to attract many people with its unique combination of urban comfort and the tranquility of a resort.

Conclusion

In conclusion, I would like to note that the real estate market in Dubai Marina truly offers unique opportunities for both investors and renters. We see that this area continues to develop, becoming increasingly attractive due to its high-quality infrastructure, diverse entertainment options, and its close proximity to the Persian Gulf coast.

Given the pace of rising prices and the growing population of residents, it can be confidently said that Dubai Marina is becoming not only a residential area but also a cultural center that offers everything necessary for comfortable living and successful business.

Growing interest in the real estate market

The growing interest of foreign residents in the area also has a positive impact on its economic situation. The adopted legislative changes only contribute to attracting even more investors and highly qualified specialists, thus strengthening the housing market.

Key growth indicators

• Increase in rental and property sale prices.
• Increased interest from foreigners.
• Attracting highly qualified specialists.

As the author of this article, I am convinced that Dubai Marina will continue to be one of the most sought-after neighborhoods in the emirate, providing its residents with unique urban living and high standards. As I follow the developments, I look forward to seeing what new horizons this dynamic neighborhood will open up in the future.