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Price per square foot in Dubai Marina remained affordable in 2019, reducing by 11.8 percent

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Bayut’s overview of property prices in Dubai showed that values have continued to become more competitive throughout 2019, resulting in both the number and value of property transactions increasing.

Dubai Marina retained its title as the most popular area for apartment sales in the city during 2019, while Palm Jumeirah continues to attract the highest number of buyers and investors for villas, according to UAE-based property website Bayut.

Bayut’s overview of property prices in Dubai showed that values have continued to become more competitive throughout 2019, resulting in both the number and value of property transactions increasing.

It said the price per square foot in Dubai Marina remained affordable in 2019, reducing by 11.8 percent from AED1,502 in 2018 to AED1,326 in 2019. This contributed to increased transactions in the area which saw sales worth AED8.07 billion in 2019 compared to AED5.06 billion it generated in 2018.

When it comes to the average sales price per square foot for apartments, the luxury area of Palm Jumeirah saw a decline of 16.6 percent from AED1,671 in 2018 to AED1,394 in 2019, Bayut added.

Areas such as Business Bay and JVC remained fairly stable with marginal declines in price per square foot of under 5 percent.

The report also said popular freehold communities such as Palm Jumeirah, Dubai Marina, Downtown Dubai and Jumeirah Village Circle dominated the sales segment in the secondary market.

It showed that in the primary segment, areas which are easily accessible from the Expo 2020 site such as Dubai South are also garnering interest from potential buyers and investors while upscale neighbourhoods such as Mohammed Bin Rashid (MBR) City and Dubai Hills Estate are still popular with those looking for off-plan developments in premium communities with more affordable payment plans.

When it comes to villa sales, the area where prices have become considerably more affordable is JVC, Bayut said, with the price per square foot lowering by 13.8 percent to AED599 in 2019.

Bayut noted that this can be attributed to a number of factors, including the increased supply of units in the area thanks to recent off-plan handovers and the emergence of neighbourhoods such as Al Furjan and Barsha South which offer similar facilities in the vicinity.

In terms of return on investment, International City offers the highest ROI of 9.4 percent for apartments, while the affordable community of Jumeirah Village Circle offers rental yields of 6.5 percent for villas, Bayut added.

Bayut also reported that established areas like Al Nahda, Dubai Marina, Mirdif, and Jumeirah continue to lead the rental market in Dubai.

Haider Ali Khan, CEO of Bayut, said: “2019 has been a year where we welcomed a lot of positive resolutions to bolster interest in the Dubai property market. We are seeing the outcomes of these initiatives with transactions increasing consistently year on year.

“We can expect this trend to continue into 2020 as well. It is certainly going to be another year of many firsts for Dubai. We will be seeing a lot of new initiatives before Expo 2020 launches in October. Construction will be completed for a lot of projects which have been developed specifically for the event, whether it’s for residential, commercial or tourism purposes. This will not only increase inventory, but it will also provide tenants and buyers with exciting alternatives that they can explore.”

He added: “Overall, we can be optimistic about sustained interest in the Dubai property market. The world is coming to Dubai in 2020, and conditions are ideal for increased transactions for all stakeholders. Healthy ROIs will invite more investors, and innovative payment solutions will help tenants to consider transitioning into homeowners.”

Source: Arabian Business

(Note: The story has been published without modifications to the text. Only the headline and intro have been changed.)

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