20 July 2014
The Property Market: What you need to know
Dubai’s property market is a hot topic for discussion. We speak to Ahmet Kayhan, CEO of REIDIN, the leading real estate information company for emerging markets, to get the lowdown on the best places to live, and the cost of renting and buying across the emirate.
Where are the cheapest places to rent and buy in Dubai right now? And what are the average prices?
When we examine Dubai freehold areas in terms of real estate sales and rental prices, International City is the cheapest area among all communities followed by Discovery Gardens, Silicon Oasis, Sports City, JVC and IMPZ (International Media Production Zone) respectively.
Why are these areas less expensive than other areas?
There are many factors that define prices, such as population, quality of buildings, amenities in the community and access to transportation, but as the above graph shows, location is the main factor in Dubai.
Which areas are most in demand, and the most expensive for renting and buying?
The most expensive area in terms of buying and renting an apartment is Downtown, followed by Palm Jumeirah, JBR, Dubai Marina [also referred to as Marsa Dubai] and The Views respectively.
Dubai Marina is the most transacted community in terms of total value followed by Palm Jumeirah and Downtown Dubai which constituted 50% of the total transaction value in 2013.
Which areas offer the best value for beachfront living?
Palm Jumeirah is the best place for beachfront living at the moment and many high-scale projects that include beachfront living have been launched since last year including the Dubai Lagoons.
How much have property prices increased in 2014? Do you see this trend continuing?
Dubai residential apartment and villa prices increased 16% and 8%, respectively in the last six months. We believe that real estate prices will continue to grow but at a slower pace in the following years.
Which areas are best for families to live?
This depends on the lifestyle and budget of the family. Two options come on top for the families who live in Dubai: low-rise buildings or villa communities. Living in low-rise buildings will give families more choices on buying and renting the unit in terms of budget, and most of the low-rise communities offer social amenities along with the option to walk around the area.
On the other hand, Dubai has many villa communities that offer specific advantages to families, such as more privacy, larger properties, peace and quiet, and social facilities.
Where do you think young professionals with no children would be happiest living?
The most important thing is if the unit is located close to retail attractions. Business Bay, Downtown, Dubai Marina and JLT offer a good range of attractions for young professionals.
About Ahmet Kayhan
Ahmet is the Co-Founder and CEO of REIDIN.com. Prior to setting up REIDIN.com he was the Regional Manager of ISI Emerging Markets, A Euromoney Institutional Investor Company responsible for the MENA Region and Global Business Manager of IFIS – Islamic Finance Information Service. Ahmet is a member of ULI (Urban Land Institute), ICSC and CoreNet. He holds a BSc in Management Engineering from Istanbul Technical University, Turkey.