According to Cluttons, a new wave of transport, retail and leisure facilities at Dubai Marina is continuing to drive buyer demand at the popular beachside location, where prices have risen by 28%, to AED 1,670 per square foot ($455 USD) in the past five years.
With the Dubai tram now fully operational and The Beach Mall offering a convenient mix of retail, dining and entertainment just a few minutes stroll away, residential units at JBR are proving a popular choice for both domestic buyers in search of a home and, international buyers looking for turnkey investments.
According to Cluttons these latest additions to the waterfront location will continue to drive the value of real estate in JBR, with residential developments like Shams 1 proving popular with investors as they look to add prime real estate, with attractive rental yields, to their portfolios. Across Dubai average residential values stand at AED 1,493 psf ($406 USD), considerably lower than other premium locations within Dubai Marina.
Lucy Bush, head of residential sales and leasing at Cluttons said, "JBR and Dubai Marina have become increasingly popular locations over the past five years, with many residential properties at 100% occupancy. We have already seen strong demand for units at Shams 1 due to its premium location and unique lifestyle offerings right on the doorstep. These have been boosted further by new transport links, retail and F&B offerings making JBR one of Dubai's most fashionable destinations."
According to Faisal Durrani, Cluttons international research and business development manager, "With Dubai's real estate market stabilizing throughout 2014, we have seen the rate of house price growth slow. Prices have however continued to hold or rise in the well-established areas such as Dubai Marina and JBR, supported by completed infrastructure and community facilities. This appeals to owner occupiers who are seeking beachside living and international investors that can achieve rental yields in the region of 6% to 8%. With this rate of return it's not surprising that Dubai featured second among nine global investment locations in our most recent International Private Capital Survey by Cluttons, just beaten by London to the number one spot."