Investment in the future. How district facilities affect the real estate value in Dubai

The value of real estate in Dubai is determined by several parameters, such as the floor area, floor plan, category of the residential complex, availability of amenities and, of course, location. The latter frequently plays a pivotal role: the district’s prestige and popularity, its proximity to famous landmarks and beaches, and the infrastructure all play a role. Experts note that investment in emerging communities that are currently under development is the most lucrative. If you are planning to purchase a property for relocation for permanent residence, not for investment, it makes more sense to choose already completed developments with facilities and amenities. Such options, however, are more expensive. The price differential may reach 5.5 times. Ruslan Sharipov, broker at AX CAPITAL, a real estate agency in Dubai, talks in detail about how facilities affect the housing prices.

Contents:

• Maritime City
• Harbour Lights
• Mohammed Bin Rashid City
• Keturah Reserve
• Dubai Creek Harbour
• Savanna
• Dubai Hills
• Elvira
• Buying bargain properties in Dubai

Maritime City

At the moment, Maritime City is an almost empty land plot where virtually no active development was going on because the surrounding facilities were not ready. The few completed buildings are basically high-rise towers amidst the desert. However, Emaar, a large developer famous for its master projects and a comprehensive approach to infrastructure development, is now entering this area, while other construction companies are also growing interested in this location.

“It is a good idea to jump on this bandwagon because this location will continue to develop,” Ruslan Sharipov says.

The expert added that in case of purchasing real estate in an emerging community, the smartest decision is focusing on off-plan projects at the early stages of construction. This way, the construction of the building and the development of the district’s facilities will progress simultaneously, and by the time your building is commissioned, the community will have extensive infrastructure.

Damac Harbour Lights is an example of such a premium project in Maritime City. It was launched recently and scheduled for completion in Q2 2027.

“Until mid-2027, the facilities around the building will be actively developed, so by the time of completion, the entire neighbourhood will transform, and its value will increase. Why purchase a completed one-bedroom apartment in this district for AED 2.5 million (USD 680,500) if you can enter a project where prices start at AED 1.32 million (USD 359,500) and make a profit on the value growth,” Ruslan Sharipov advises.

He explains that completed buildings will be 8-9 years old by the time the construction operations are over, while the Harbour Lights building will be brand-new, which also affects the price considerably.

Harbour Lights

This opulent residential project will be a gem on the Maritime City waterfront. The 52-storey high-rise tower with premium facilities and exclusive design by the luxury brand de Grisogono will stand literally on the water’s edge. Spacious one-, two-, and three-bedroom apartments with a floor area of 74 to 158 square meters are available here. The most expensive property costs no more than AED 3.28 million (USD 893,000) at this initial stage. Every residence boasts staggering views of the marina and the Persian Gulf with snow-white yachts. This is a brilliant investment opportunity that can be considered rare even for Dubai. The value of real estate in this city has reached AED 14,500-18,500 (USD 4,000-5,000) per square metre, while popular and already developed waterfront communities of Dubai Marina and Palm Jumeirah are even more expensive, at about AED 38,500 and AED 35,000 (USD 10,500 and USD 9,500), respectively, as of Q4 2022.

Mohammed Bin Rashid City

A typical example of development growing literally out of nowhere is Mohammed Bin Rashid City (MBR City).

“Take this location: this district was virtually non-existent five years ago,” the expert comments.

Today, MBR City is a popular and prestigious community with extensive facilities and great transport accessibility. Popular tourist landmarks, numerous entertainment venues, an immense shopping mall, a sprawling park, the world’s largest artificial lagoon, prestigious international schools, and over 4 million square metres of freehold real estate available to foreigners are found here now.

The district is notably named after the Sheikh and the ruler of Dubai who personally announced the project. The community is close to the central district – Downtown Dubai, which is developing in this direction.

MBR City is in the top 3 districts by the number of completed properties and in the top five, by the number of new projects in 2022. Last year, 3,000 new residences were built there, and another 3,200 were begun. Villa rental rates surged by over 40% in this community over the past year alone, which is more than four times higher than the Dubai average for this property type (9%).

Keturah Reserve

The off-plan Keturah Reserve can be considered one of the most striking projects in MBR City. This ultra-luxury complex comprises one- to four-bedroom apartments, super-opulent mansions, and villa plots. The project was launched in late 2022, but it has already attracted great attention from investors. This is the region’s first complex to be built according to the Bio Living concept that embraces eco-friendliness and awareness in harmony with nature. Numerous amenities aimed at staying fit, natural design elements, and the architecture of the entire community where landscapes blend seamlessly with residences follow this concept.

The prices start at AED 2.73 million (USD 743,500) at this initial stage.

Dubai Creek Harbour

Another signature community is the waterfront Dubai Creek Harbour, which was also practically non-existent a few years ago. Today, there is roaring demand for properties in this area, Ruslan Sharipov says.

The community is still under active development, but incredible facilities are already available here, such as waterfronts, shops, restaurants, beaches with amenities, footpaths, cycling lanes, a huge park, and numerous sports courts. Nearby is the Ras Al Khor Nature Reserve. New projects are constantly launched in this prestigious signature location. Rental rates on local apartments increased by 24% over the year 2022 alone.

The expert gives an example of another waterfront district, Emaar Beachfront, where prices are growing too.

“Two years ago, a one-bedroom apartment in this community was worth AED 1.3 million (USD 354,000). Now, the prices are twice as high,” he explains.

Savanna

Savanna is a promising off-plan project in Dubai Creek Harbour. This high-rise residential complex with one- to three-bedroom apartments is minutes away from the Creek Beach and close to Dubai’s major business, shopping, and entertainment venues. The prices start at AED 2.07 million (USD 563,500).

Dubai Hills

This is a classic case that demonstrates how infrastructure development affects the price trend, Ruslan Sharipov notes. Two years ago, Dubai Hills was considered an unappealing location far from the waterfront, drawing little attention. A one-bedroom apartment in this community cost AED 750,000 – AED 850,000 (USD 204,000 – USD 231,500) at the time.

“Now, when a park and a shopping mall have been built in Dubai Hills, the prices from developers start at AED 1.3 million (USD 354,000). This is the same district! The recently announced buildings might even be slightly inferior to the properties built here earlier but they cost more because the location is ready and in-demand,” the expert says.

Elvira

This residential project with apartments, duplexes, and townhouses was launched in 2022. The premium complex will comprise two high-rise towers with 892 residences flaunting ultra-modern design. Every residence will have a spacious balcony, a laundry room, and a walk-in wardrobe. Townhouses will offer breath-taking views of the green Dubai Hills Park. Numerous amenities will be available, including adults’ and children’s swimming pools, a barbecue area opening onto the park, and colourful communal spaces.

Buying bargain properties in Dubai

Whatever your purpose of looking for a Dubai property is, be it relocation, vacations, or investment, it is better to rely on professionals who have in-depth knowledge of the local market. Experts from AX CAPITAL will gladly give you detailed consultations taking into account your unique circumstances, explain the current trends in Dubai and other emirates, and help you to make an informed decision. Please fill out the feedback form, and we will assist you with selecting a high-return property that fully meets your interests and preferences. We will handle the red tape and answer all your questions.