Dubai: Dubai’s property market is not just about price surges and all-cash transactions driven by high net worth investors. At least, not yet.
Potential buyers eyeing mid to upper range properties can try and access the steady supply of new properties in clusters such as Motor City, Dubai Silicon Oasis and a much revived Dubai Sports City.
Union Properties, master-developer of Motor City, has just launched new projects there and still has plenty of land bank to utilise there, according to a top official. “Union Properties owns more than 12 million square feet in Motor City and the four announced projects will only take up 1.5 million square feet,” said Khalid Bin Kalban, chairman of Union Properties and of Dubai Investments.
Already, Motor City has been witness to solid value appreciation, helped on by the community lifestyle it promises and the more or less self-sufficient infrastructure in place. Its location has also helped, given the proximity to always-in-demand Arabian Ranches and the easy access offered by being on Mohammad Bin Zayed Road.
“Today, sale prices in Motor City range from Dh900 a square foot as compared to half the price of 24 months ago; rentals are coming in at Dh70,000 for a one-bedroom and Dh100,000 for a two-bed,” said Niraj Masand, partner at Banke International. “The recent price increase can be attributed to the fact that there were a staggering 254 transactions reported in Q3 at Motor City.”
For mid-budget minded buyer, Sports City offers another option. “It is still to be seen whether Sports City will keep pace with the pricing of Motor City considering they are adjacent, and will largely depend on infrastructure and services,” Masand said. “The biggest difference between the two is that Union Properties is entirely developing Motor City while multiple developers are involved in Sports City.”
Current selling price is at the Dh700 a square foot mark, while rents are Dh55,000 for a one-bed and Dh80,000 for a two-bed. The value of transactions during the third quarter doubled to Dh75 million over the same period last year.
Dubai Silicon Oasis is also seeing an activity spike, with demand for commercial space already in a fairly mature phase. “Prices are increasing in a healthy fashion helped by a proper balance in demand and supply,” said Yash Shah, sales and leasing manager at SPF Realty. “The average price in the area is around Dh750 a square foot and rent returns average around 4-5.5 per cent annually. This should soon see an increase as well.”