Greater investor interest in off-plan homes near Dubai's Expo 2020 site
Upcoming off-plan developments near the Expo 2020 Dubai site are said to be attracting buyer attention and greater investor interest, according to property portal Bayut.
Greater investor interest in off-plan homes near Dubai's Expo 2020 site
DUBAI – “ASWAQ”
Upcoming off-plan developments near the Expo 2020 Dubai site are said to be attracting buyer attention and greater investor interest, according to property portal Bayut.
Dubai South, Meydan City, Mudon, and Town Square are among the developments that have attracted interest from owners and tenants, Bayut said in a statement.
Bayut further said the fact that these projects are backed by builders such as Emaar, Meydan, Sobha, Dubai Properties and Nshama "definitely adds to the increasing interest".
Chief executive officer of Bayut, Haider Ali Khan, said: “We can be optimistic about the growth of areas near EXPO 2020 such as Dubai South, Meydan City, Town Square and Mudon in the next few years.”
Commenting on the property trend, Ali Khan, said: "They are well-integrated neighbourhoods which already offer a high ROI to investors. This could improve further when more handovers are completed and tenants have a wider portfolio of properties to choose from.”
He said that while a few units have been handed over in Dubai South and Meydan, investors can still find a large portfolio of reasonably priced properties in these emerging districts. Dubai South also offers one of the best options in terms of ROI with rental yields of over 11 percent.
According to Bayut data, studio apartments for sale in Dubai South average AED385,000, while 3-bedroom villas are at AED1 million. In Meydan City, prices are higher with 3-bedroom villas going for an average of AED3.3 million and studios averaging AED450,000. However, the premium amenities of the neighbourhood, which includes a golf course, equestrian centre and mall easily justify the higher price tag.
Bayut also noted that when it comes to rentals Town Square and Mudon are the emerging areas gaining popularity with its users, with the Arabella Townhouses in Mudon and the Hayat Townhouses in Town Square the most popular out of all sub-communities within the two areas.
Prices have come down slightly for villas in both Mudon and Town Square in the first quarter of 2019. The average rent for a 3-bed villa in Mudon is AED125,000 per year and in Town Square, a similar unit is priced at AED100,000. As a result, both areas are extremely attractive alternatives for people who had to rely on areas which are further away such as Mirdif and Al Warqa’a which offer properties at a similar price.
Offering a complete suite of real estate services and insights, Bayut is already a great success story in the UAE with 50 million searches performed in 2018 and having the most number of real estate agencies on board than any other website in the region.
Ever since the announcement of Expo 2020, construction in Dubai has been moving fast. With one more year to go on the Expo 2020 timeline, real estate projects such as the Dubai Frame, Dubai Water Canal and Dubai Parks and Resorts are open to the public. The 5 top Dubai real estate projects that are expected to be completed for Expo 2020 Dubai: Al Wasl Plaza, the new Dubai metro line Route 2020, Aladdin City, Ain Dubai at Bluewaters Island, and Museum of the Future.
With increased supply of properties, it is unlikely that all these units will further impact the property prices this year. Saying this, the government’s efforts of creating relaxed rules on property ownership, the extended visas and hopefully a lower entry point for secondary property mortgages soon are important initiatives to incentivize investment, and will allow the UAE to keep the momentum created by tourism boost after the Expo ends in April 2021.
The new visa rules that have recently come into effect, including the 10-year residency visa, will make it easier for those who view Dubai as a world hub to settle here and become contributors to the overall economy. This will also help in soaking up current and upcoming supply and will lead the market to see a much-needed stabilization of prices.
