Dh2 million for a home at the Burj Khalifa? Dubai homes are now available for all budgets

Affordability will once again be a mantra this year as buyers scan the horizon for bargains across the UAE property market. Reasonably priced properties will be the main purchase driver especially for desirable but high-priced developments in Dubai and Abu Dhabi. However, those looking beyond these two economic and residential hubs are choosing to buy waterfront or beachfront villas and apartments at a fraction of the price. 

 

“In 2015 we saw overall stability across the market and only a modest decline in residential rental rates due to the release of new units,” says John Stevens, Managing Director at Asteco. “With more units set to be released this year, even more pressure can be expected and this is a major consideration for those looking for buy-to-let opportunities.”

 

Stevens says it would be advantageous for buyers to acquire property this year although existing owners keen to sell may be forced to hang on to their investments or simply refuse to bow to market pressure, which may result in fewer transactions in the secondary market.

 

Commercial real estate services firm JLL, which monitors Dubai and Abu Dhabi, expects average sales prices to fall by 5-10 per cent. “There will be significant variation between different properties but we believe the overall direction will be a moderate decline,” says Craig Plumb, Head of Research — Mena. 

 

Ayman Youssef, Vice-President of real estate company Coldwell Banker UAE, describes 2016 as a transition year, which will be followed by moderate growth if the projected population and economic growth remain unchanged. 

 

“The month-on-month rate of price decline is not as sharp as before and the majority of property owners are tolerant enough to hold their assets,” he says. “The current price levels are very attractive for buyers who are looking for income-generating properties or first-time homebuyers who are renting now.”

 

Niall McLoughlin, Senior Vice-President, Damac Properties, looks at the 2015 market as a relatively stable one with price consolidation. “We expect a return to healthy and sustainable single-digit growth from this year.”

 

So what should the buyer be looking for? As always, investments are available at different levels, but what qualifies as affordable varies on the investor’s appetite. 

 

McLoughlin says the general criteria used in the UAE categorise housing units below Dh1 million as affordable, since the category caters to a large segment of expatriate residents. JLL uses the term for those projects offering two-bedroom units at a purchase price below Dh790,000 or an annual rent of under Dh73,000. Final prices must take into account service charges and finance costs.

 

Since Dubai and Abu Dhabi may not necessarily offer fabulous bargains at those prices, buyers could be tempted to look to other emirates. While disadvantages here could include underdeveloped infrastructure, additional commuting time, fewer amenities on your doorstep, and unclear real estate legislation, there are hidden gems to be discovered. 

 

“Ras Al Khaimah has proven to be the best alternative with many residents choosing to buy waterfront or beachfront villas and apartments at a fraction of the price in Dubai,” says Stevens. “These properties are highly attractive for those commuting only a couple of days a week, especially as retail, quality hotels and other supporting facilities are available in the emirate.”   

 

Agents and insiders offer an insight into the various properties available at different price points below.

 

Properties under Dh1 million 

 

Affordable apartments — usually studios and one-beds — available in various developments include Jumeirah Village, Reef Residence, Dubai Sports City, International Media Production Zone, Dubailand and International City, Stevens says. 

 

He adds buyers should look out for properties in the recently launched Midtown by Deyaar, Town Square by Nshama, Ritz Residences and Al Zahra Apartments at Town Square. 

 

In Abu Dhabi, Hydra Avenue, Al Ghadeer and Ansam on Yas Island all have properties for sale well under the Dh1-million threshold and Al Reef Tower has one-bedroom units for Dh900,000. 

 

In Ras Al Khaimah, Al Hamra Village has marina apartments for under Dh500,000 and Royal Breeze studios come in at about Dh300,000. McLoughlin says a one-bedroom apartment at Viridis Hotel Apartments by Damac will cost under Dh1 million. 

 

It is extremely rare, if not impossible, to find a villa under Dh1 million these days. The cheapest one-bedroom town house in Jumeirah Village Circle will set you back Dh1.25 million, Stevens says. 

 

Under Dh3 million 

 

Apartments from studios to three-bedrooms can be found across the board for under Dh3 million. A small one-bedroom apartment can be purchased for less than Dh2 million in Burj Khalifa, which is prime real estate, says Stevens. Damac Towers by Paramount will come in under Dh3 million, says McLoughlin.

 

Youssef says Mira Townhouses, due for handover next year, will be available for under Dh2 million for three- to four-bedroom town houses. “Mira will be a great community to live in and will offer great returns.”

 

Barry Ebrahimy, Head of Commercial at Al Hamra Real Estate Development, says Ras Al Khaimah is a good location for bargain properties under Dh3 million. A three-bedroom town house priced at Dh1.7 million can expect a range of features and amenities such as outdoor patios, large rooftop terraces, balconies, access to swimming pools, private parks, tennis courts, a football pitch, beaches, a 200-berth marina, golf courses, two shopping malls and nearby five-star hotels. The three- and four-bedroom homes range in size from 2,786 to 4,406 square feet and include a maid/nanny room.

 

Villas in Springs, Jumeirah Village Circle, Jumeirah Village Triangle, The Villa, Falcon City and Arabian Ranches start at Dh1.6 million for smaller units and increase in price depending on views, size and additional features.

 

Under Dh5 million 

 

A two-bedroom apartment at The Distinction by Damac will cost under Dh5 million. Meanwhile, three-bedroom town houses in Springs or Arabian Ranches are selling for about Dh3 million and large three-bedroom villas in Jumeirah Park are going for Dh4.5 million, Youssef says. 

 

Under Dh7 million

 

Jumeirah Heights, Cayan Tower, Vida Residences and Ashjar are some of the more luxurious apartments one can find for under Dh7 million, says Stevens. 

 

Villas are available under the Dh7-million mark at developments such as Jumeirah Islands, Jumeirah Golf Estates, The Meadows, Jumeirah Park and The Villa, say Youssef and Stevens. 

 

Villas at Picadilly Green @ Akoya by Damac also fall into the price range, says McLoughlin. 

 

Above Dh7 million 

 

Ultra-luxurious apartments in exclusive and high-demand locations include Le Reve in Dubai Marina and Palazzo Versace in Culture Village.

 

Penthouse apartments start at Dh7 million in Jumeirah Beach Residence, going up to Dh30 million in Index Tower in Dubai International Financial Centre, says Stevens. Villas in this price bracket can be found in Jumeirah Golf Estates, Al Barari, Emirates Hills, Jumeirah Island and Palm Jumeirah. A four-bedroom Jumeirah Island villa, for example, will set buyers back Dh8 million. 

 

Queens Meadow @ Akoya by Damac is also available in this price bracket.