Dubai: Dubai’s mid-market communities are inching their way back to their mid-2014 highs, with the likes of Motor City and Sports City leading the way.
Of the older communities, Discovery Gardens is leading the way, according to the latest bulletin from the property consultancy ValuStrat.
This has been brought on by monthly value gains of between 0.6 per cent to 2.6 per cent for apartments in mid-tier clusters. On the villa side, the increases were extremely narrow, at between 0.8 per cent to 4.1 per cent and visible in locations such as Arabian Ranches, Jumeirah Park and Jumeirah Village.
“Two locations are now less than 5 per cent from their peak of 2014; property values in Motor City are now being recorded at only 3.2 per cent below peak,” states the report. They are “followed by Dubai Production City [earlier known as IMPZ] at 4.5 per cent below peak. Conversely, some areas saw monthly price declines that averaged minus 1.5 per cent for both villas and apartments.”
The mid-market gains reflect the two-speed dynamic now in play in the local property market. At the same time, values in the luxury end is still far from being anywhere near the mid-2014 highs.
If the coming weeks see an increase in the number of off-plan launches with a high-end profile, value gains for this property type will be limited.
According to ValuStrat, the current gross yields that investors can aspire to are 5.2 per cent for villas and 7 per cent for apartments.
