Dubai real estate: where to look for profitable investments in 2023?

Current trends in the Dubai real estate market

This article analyzes various aspects of the real estate market in Dubai, including sought-after neighborhoods, current trends and promising projects. In 2018, the market was noticeably affected by a drop in home prices, driven by a slowing global economy and oversupply.

According to the company's dataSavillsin the areaDowntown DubaiThere has been a 16% increase in prices, while in the residential complexes adjacent to the famousBurj KhalifeThere has been a decrease of a similar 16%. In the districtDubai Marinaprices fell by 5-7%, and the cost of villas and townhouses decreased by 9%. Despite the temporary stagnation in activity on the part of buyers, this deficit is not felt against the background of growing investor interest in popular areas of the city.

Features of the Dubai Marina area

NeighborhoodDubai MarinaWith its favorable geographical location, the city offers a wide variety of residential complexes, as well as many shopping and dining establishments. This makes it an attractive place to live and invest in real estate.

Most recently, a major real estatedeveloperEmaarbegan implementation of a new project on an artificial island located between theDubai MarinaandPalm Jumeirah. This project is attracting a lot of interest among people from the CIS due to its proximity to beach areas and the high quality of construction materials, which are far superior to the offers available more than a decade ago.

Heart of the city: Downtown Dubai

Downtown Dubaiis deservedly considered the heart of the city and needs no additional advertising. This neighborhood is home to iconic buildings such asBurj KhalifaandDubai Mallwhich makes it one of the most visited locations in the world.

This 500-acre area has been dubbed the “new downtown” due to the presence of luxury residential apartments. It is expected that interest in real estate in this area will continue to grow due to its proximity to theBurj Khalife.

• Despite the high price categories, active interest from buyers in the primary and secondary markets makes theDowntown Dubaia great area for investment.
• Investors are aware of this, as evidenced by the high deal activity in this area.

Developing Dubai Hills neighborhood

Dubai Hills- is a new developing area that is rapidly gaining popularity in the real estate market. The reasons for this are affordable prices and flexible payment systems, which attracts many buyers.

In addition, specific infrastructure including:

• a large golf course,
• a long green park of one square kilometer,
• a variety of pedestrian areas,

makes this neighborhood particularly attractive. A new shopping center is expected to open here at the end of 2019, which will add even more amenities by offering various cafes and restaurants.

Thus,Dubai Hillsconfidently ranks high in terms of the number of transactions in the Dubai real estate market.

It is quite natural that this neighborhood attracts the attention of couples and parents with young children. Therefore, the purchase of housing in Dubai Hills seems to be an excellent option both for own residence and for subsequent rent.

In addition, it is worth noting that the Dubai Hills area has become one of the most promising areas for investment in the premium segment, next to such famous locations as The Palm Jumeirah, Dubai Marina, Downtown Dubai and Emirates Hills. This has been made possible by the construction of villas located in close proximity to the golf club, which has significantly increased interest in the neighborhood.

Popularity and availability

Dubai Hills has grown in popularity not only among buyers of luxury real estate, but also among those looking for affordable options. The reasons for this are reasonable price offers and flexible payment terms. Modern buyers increasingly prefer environmentally friendly areas with extensive parks and cozy cafes, which used to be difficult to achieve in other parts of the city.

• Ecologically clean areas
• Extensive parks
• Cozy cafes

Dubai Hills fully caters to these needs by offering excellent living and leisure facilities.

Impact on other areas

However, the increase in interest in Dubai Hills did not negatively affect demand in such sought-after areas as Dubai Marina and Downtown Dubai. In the beginning, after the active promotion of Dubai Hills, there was some loss of interest in these areas, but soon they regained their traditional positions in the market.

Interest in Bluewaters Island also remains strong, with investors looking for ready-made apartments actively considering this unique island. The opportunity to buy property directly from developers in close proximity to the largest Ferris wheel in the world, which will open in October 2020, makes the offer particularly tempting.

State of the real estate market

Currently, despite the growing focus on new neighborhoods, Dubai Marina and Downtown Dubai still remain desirable properties. The Jumeirah Village Circle area is performing well, with the prospect of annualized yields in the region of 8%.

The average cost of standard apartments in Dubai at the moment is approx.$370,000..

Investing in real estate in Dubai Hills

When discussing the selection of neighborhoods that are suitable for buying properties under construction for a profitable later sale,Dubai Hillsrepresents a very good offer. This area is actively developing, which drives housing prices upwards. Here are quite reasonable rates, and the developer offers convenient conditions for installments: buyers can pay the remaining 50% of the cost of the property within two to three years after receiving the keys. This makes the offer particularly attractive for potential buyers. It is important to note that the project is being implemented by two leading companies that have established themselves in the Dubai real estate market and have built a significant part of its buildings, which ensures continued interest in their properties.

Promising areas for investment

Promising investment proposals include such areas asMadinat JumeirahandEmaar Beachfront. They are characterized by high potential for rental income, as they are located in the most sought-after and prestigious parts of the city. Attractive opportunities in the neighborhood are also worth paying attention toMeydan.

This massive project, under the authority of the UAE Vice President, is set to create some of the world's greatest structures, including:

• Dubai One TowerAt 711 meters tall, it will be the tallest residential tower on the planet;
• the highest altitude restaurant at 675 meters;
• the longest indoor ski slope with a length of 1.2 kilometers;
• a huge 25,000-square-meter indoor sports complex;
• an observation deck with a panoramic view at an altitude of 655 meters;
• a 420-meter long dancing fountain;
• the largest lagoon, covering an area of 7 kilometers.

All of these projects will drive up real estate prices in the neighborhoods.

Underestimated projects for investors

As for the undervalued and available for purchase objects, experts emphasizeJumeirah Golf Estates. Here apartments with spacious layouts are offered, and the cost per square meter is lower than in most similar complexes. In addition, the area where the residential complexes are located is characterized by picturesque landscapes. For those who appreciate nature and dream of living in a golf community, this area will be an excellent choice; in addition, the developer offers convenient installment plans.

Affordable Housing in Jumeirah Village Circle

Those investors looking to purchase affordable housing should pay close attention to the followingJumeirah Village Circle. This is probably the best choice in terms of price, location and quality of housing construction. Although the neighborhood may seem somewhat simple compared to other parts of the city, it is rapidly gaining popularity and actively developing.

There are numerous projects here that promise good returns, making this location particularly attractive to those looking for affordable opportunities in the Dubai real estate market.

Conclusion

In conclusion, Dubai's real estate market continues to be dynamic and promising, even despite price volatility and economic fluctuations globally. As we have seen, neighborhoods such as Dubai Marina, Downtown Dubai and Dubai Hills are leading the way with their unique offerings, infrastructure and convenient locations.

Bluewaters Island, for example, is a real find for those looking for high-quality housing with instant readiness, and Dubai Hills pleases buyers with a wide range of opportunities for comfortable living in an ecologically clean natural environment.

Demand for real estate and investment

Equally attractive are investment opportunities in Emerging Projects - undervalued and inexpensive properties that can become “golden” finds. It is important to remember that demand for real estate in these areas is not only recovering, but also attracting the attention of new investors, which creates positive preconditions for price growth in the future.

Features of each neighborhood

Each of the neighborhoods listed offers something special:

• Downtown Dubai- life in the heart of the metropolis with luxury apartments;
• Dubai Hills- A relaxing lifestyle with green parks and golf courses;
• Bluewaters Island- unique offer with ready-made housing near the Ferris wheel.

That said, there are still plenty of opportunities for profitable acquisitions if you keep a close eye on market changes and trends in consumer preferences.

It's time to act

So, for those thinking of buying real estate in Dubai, whether for personal residence or as an investment, now is the time to act. This global hub offers unique conditions and prospects that can cater to a wide range of buyers. The real estate market in Dubai is poised for new successes and I look forward to seeing what the future brings!