Dubai Marina continues to be the most popular location in the emirate for buyers and tenants, but Dubai Sports City is fast growing in popularity, according to the latest data report.
A review of nearly two million visitors by real estate portal PropertyFinder found 18.67% were searching for Dubai Marina units to buy and 18.41% were looking for rentals.
‘Whilst Dubai Marina, Downtown Dubai, Palm Jumeirah and Jumeirah Lake Towers remain firm favourites with buyers, Dubai Sports City’s reputation as a property hotspot seems to soar,’ the report says.
‘From not figuring in the top 10 list last year, the community zoomed ahead to eighth position this quarter,’ it adds.
Also on the rise was Jumeirah Village Circle, moving up to seventh spot in the fourth quarter of 2013 from its 12th position in the second quarter. International City also saw a revival of sorts, earning a place in the top 10 list for the first time this year.
‘Dubai’s property market has clearly rebounded with prices increasing by over 20% this year even as new projects get launched every other week,’ said Michael Lahyani, chief executive officer of PropertyFinder.
‘Real estate demand is only likely to inch higher in the years leading to the Expo 2020, so if you want to put your money into a home or office, these are the communities where owning and renting seem to make sense,’ he added.
He also pointed out that home prices have been recorded at the highest levels since the downturn and the market has also gained a more favourable reputation for tighter regulation.
This includes a new rental decree which allows for rents to be increased by 5% if they are 11% below the market rate for the area rather than 26% as determined by RERA’s rental index.
The law will be applicable to private and public sector owned properties in Dubai, as well as those within the free zones and reaction to the new rental policy has been mixed.
‘Whilst some residents consider this a better move than the recent total removal of the rent cap in Abu Dhabi, others worry that a rise in rents too quickly could drive the market into bubble territory,’ explained Lahyani.
‘However, we can also look at the situation from the viewpoint of the landlord. For one, since 2008/2009, tenants in Dubai have enjoyed the benefits of relatively lower rents. Hence, landlords could argue that given the rebounding market, they should be able to pick up better returns,’ he said.
‘This may also work in the favour of tenants, as more landlords content with rental returns in the long run would mean fewer reasons for them to make a quick buck by evicting tenants. Also, given the huge influx of investors to Dubai in view of Expo 2020, it makes sense to realign and adjust the rental index across private and public sector and free zone owned properties in Dubai,’ he added.