Growing End-User Demand For Homes In The Dh1m-Dh2m Price Range Despite Rising Rents.
Expo City is now the sought-after location for those looking for affordable homes in Dubai. The recently launched Mangrove Residences in Expo City offers one-bedroom units ranging from Dh1.39-Dh1.59 million, and two-bedroom units priced from Dh2.05 million to Dh2.55 million, competing with established areas such as Jumeirah Village Circle and Al Furjan.
Buyers at Expo City are being offered 7-year payment plans, with 5 years being post-handover. The estate agent noted that, unlike other areas in Dubai, Expo City’s home prices have not yet seen significant mark-ups. The homes, which are being sold directly by the developer, have the advantage of proximity to major legacy attractions of the Expo, and Expo City itself is being heavily promoted as Dubai’s latest residential and commercial hub. The agent added that the Mangrove Residences are just a sample of what the location will offer in the future, with more premium options likely to be released.
During a recent media tour of the project, Ahmed Al Khatib, Chief Development and Delivery Officer of Expo City Dubai, stated that the payment plans for the project’s off-plan launches are affordable. The master developer has taken a phased approach to the launches. Including the launch of ‘Expo Valley,’ which offers 3/4-bedroom townhouses and 4-/5-bedroom villas.
Expo City’s Success Leads To A Property Sales Surge In The Wider Dubai South Area
Dubai South is also benefiting from the attention generated by Expo City, as property sales in the broader area are increasing. According to Sameer Lakhani, Managing Director at Global Capital Partners, property prices in Dubai South are rising by up to 40% due to the launch of off-plan properties. Dubai South is becoming a new residential hub not only for affordable properties. Also for upper-middle and premium segments, thanks to the master plan’s ability to offer various options. Per square foot (PSF) prices, ranging from Dh650 to Dh1200, are also helping to drive demand.
Dubai’s Property Market: High Demand for Homes under Dh2m
Dubai property market sees strong Q1 performance with rising interest in affordable homes. While attention was drawn to high-value deals, such as a Dh410 million penthouse and a Dh125 million land transaction, the sub-Dh1 million and sub-Dh2 million categories saw significant activity. According to DXBInteract.com, 35% of all home sales in Q1-2023 were for units under Dh1 million. While another 27% were for those between Dh1 million to Dh2 million. High-value transactions above Dh5 million made up only 9% of total sales but had the greatest visibility.
Jumeirah Village Circle
Jumeirah Village Circle (JVC) emerged as the best-performing area for property sales in Q1-2023. The average value of properties sold at Dh687500 highlights the location’s affordability. The average per square foot (PSF) value increased by 16 percent from a year ago to Dh1100. Another budget-conscious location, Mohammed bin Rashid (MBR) City, saw an average sales price of Dh1.4M and a PSF value of Dh1800, up 15.7%.
The Circle and Triangle areas around Jumeirah Village continue to see new launches. Such as Fashionz with prices starting under Dh1M, and Hadley Heights from developer LEOS. Frequent new launches are helping to keep JVC property values in check and have made it the top spot for under Dh1.5 million homes in recent quarters.
Many of the buyers in these affordable areas are end-users who prefer to own rather than rent their homes. The same trend can be observed in Al Furjan. Where developers offer apartments at prices of around Dh1M for two-bedroom units. Another location where affordable off-plan properties are frequently launched is Arjan.
Adding a Greek Flair with the New Development ‘Mykonos’
Samana Developers Launches Enhanced Mykonos Project in Arjan, Dubai, Drawing Inspiration from Greek Islands. Samana Mykonos Signature is the developer’s third project this year. Promises an 8% additional return on investment for units placed as holiday homes. DAMAC Lagoons has also released a Mykonos cluster. Which has been a popular off-plan choice with investors. Thanks in part to its water features and European-inspired design. With more European buyers entering the Dubai market, recreating the look and feel of Europe is proving to be a successful strategy, especially with affordable pricing.
Expo City Emerges As A Popular Rental Destination
Expo City and its counterpart, the Expo Village, are two distinct areas in Dubai South. The latter offers several rental options and is particularly noteworthy, according to Katie Burnell, Associate Director and Head of Residential Agency at Savills, the leasing agent.
Burnell cites several reasons why the Expo Village stands out from other Dubai South developments. First, the area has a well-established infrastructure network. Including a dedicated metro station within walking distance, and excellent road connectivity. Expo Village is a fully-integrated community featuring parks, green spaces, play areas, swimming pools, and gyms, unlike a standalone residential building.
Moreover, it is situated near the Expo City site. Which has 42 active retail and F&B outlets. Savills Middle East was tasked with leasing out Residences 4, one of Expo Village’s four community clusters. Which collectively comprise 600 units.