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Dubai Property Market
- 38% YOY
Property sale volume
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- 56% YOY
Property sale value (AED)
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Downtown Dubai is the quintessential Dubai property investment location
It is home to the world’s tallest building, the Burj Khalifa, and for many years, the emirate’s biggest property returns, so it is easy to forget that Downtown is actually one of the smallest submarkets in the whole of Dubai.
The finite, space-limited nature of Downtown is partly responsible for the cooling of price rises recently – demand for properties here was so high, asking prices outpaced the rest of the emirate for many years.
Now values remain high and many new investors have turned their attention to slightly less sought-after locations, such as the nearby Business Bay.
That said, the prestige of Downtown alone always ensures there is a strong investment demand for properties here.
Downtown Dubai is the quintessential Dubai property investment location
Downtown Dubai property statistics for completed 2-bedroom properties:
- The average asking sales price in Downtown Dubai in March 2023: 3.3m AED
- The average transaction sales price in Downtown Dubai in March 2023: 3m AED
- The average asking sales price in Downtown Dubai in March 2023 per sq ft: 2,500 AED
- The average transaction sales price in Downtown Dubai in March 2023 per sq ft: 2,200 AED
Although dominated by the Burj Khalifa and numerous other spectacular skyscrapers, the market in Downtown is more diverse than most of the prime investment locations in Dubai.
Here, investors can acquire luxurious apartments, more affordable apartments, townhouses and villas in the low-rise Old Town residential retreats. Despite the iconic urban vista, many of these Arabian-inspired complexes are surrounded by lush gardens and offer a very tranquil lifestyle.
Average capital appreciation in Downtown Dubai over the past 12 months
- Downtown Dubai overall: 6.01% capital appreciation
- Downtown Dubai 2-bed property: 6.0% capital appreciation
- Downtown Dubai 3-bed property: 13.66% capital appreciation
HOW TO CHOOSE A PROPERTY INVESTMENT IN DOWNTOWN DUBAI
Downtown has some of the most diverse property types in the whole of Dubai. Investors seeking regular yields tend to acquire properties popular with young ex-pats. In Downtown, this usually means studio apartments between 450 sq. ft. and 560 sq. ft.
However, investors can find value across the apartment market – in fact, Downtown has some of the largest and most luxurious penthouses in the whole of Dubai.
Even though it is one of the more mature submarkets in the emirate, there are still plenty of off-plan opportunities. Around 1,500 new units will be sold to investors this year.
DOWNTOWN DUBAI RENTAL MARKET
According to the Reuters data published in the final quarter of 2022, property prices in Dubai are expected to rise by 3% on average over the course of 2023.
This is somewhat slower than the past 2 years but still represents some of the highest ROI from any prime real estate market over a 12-month period that is expected to be full of economic turbulence.
Beyond that, the mid to long-term future of Dubai property investment looks bright. Investors are encouraged by expert predictions that this third cycle will be much more sustained and robust than in the past, as both the real estate market and the wider economy in Dubai show signs of maturity.
The UAE has been singled out as the world’s most favoured foreign direct investment location with governments, companies and high-net-worth individuals from Europe, Asia and the United States keen to acquire assets and infrastructure in Dubai and the other emirates.
Downtown will always be at the heart of Dubai’s real estate activity.
DOWNTOWN DUBAI LOCATION AND LIFESTYLE
Like with much of Dubai property investment, it is hard to separate the appeal of Dubai’s lifestyle from the ROI; the lifestyle drives the demand for property and tenancy.
As the name suggests, the lifestyle on offer in Downtown Dubai is dynamic and fast-paced. It’s the hub of the emirate’s entertainment and leisure activities, and home to many popular attractions and world-famous landmarks such as Dubai Mall, the Dancing Fountains, and the Burj Khalifa.
With so many tourist attractions Downtown is a busy location throughout the year.
Downtown is almost equidistant between Dubai International and the Palm, at the northeast end of Sheikh Zayed Road. This location affords close proximity to almost anywhere in Dubai.
What is the mix of off-plan and completed properties in Downtown Dubai?
Downtown Dubai’s property market is predominately completed properties, but there is also a significant volume of off-plan opportunities.
As you would expect, Downtown Dubai’s off-plan market is at the higher end of the price scale with average transaction values for 2022 at 2.7m AED – around 2,265 AED per sq. ft. according to the Dubai Land Department.
IS DOWNTOWN DUBAI GOVERNMENT-OWNED?
Downtown was developed by Emaar Properties. This largely state-owned company was created in 1997 initially and specifically for the development of the area.
However, all units are fully owned by the buyer and Downtown has been declared a freehold region of the UAE for many years.
What investment budget do you need to buy property in Downtown Dubai?
Completed studio apartments in Downtown Dubai have been acquired from as little as 625,000 AED in the past 12 months.
However, Downtown is widely viewed as one of the most prime markets in the whole of Dubai and for the past few years, average prices have only been surpassed by those in the Palm.
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