That's steep

Q What views in Dubai property command the highest prices?

A Martin Ashkuri, director of sales at Cirrus Brokerage explains the hierarchy. "Prices linked to views in Dubai are relative to the exclusivity which they offer. This explains why a premium is attached to homes which offer sea views; due to their limited nature. Another view which is currently commanding a high premium is that of the Burj Dubai, the world's tallest tower. The current economic climate makes it increasingly unlikely that a tower will be constructed higher than the Burj Dubai in the near future. Other views commanding premiums however, not as high due to being man-made and therefore less limited are those of golf courses, lakes and parks."

"Top of the list has to be sea views," says Mohanad Alwadiya, managing director of Harbor Real Estate. "These are always in demand and have universal appeal. However, when a sea view is complemented by an iconic structure such as the Burj Al Arab, the value of the vista will be enhanced."

Q Which represent the best value and potential for appreciation?

A "Due to their limited nature, we predict homes with a sea view or view over the Burj Dubai to appreciate faster than their counterparts with less exclusive views," says Martin. "However, it should also be noted that homes with views of golf courses, lakes, and the marina are currently being sold at fantastic prices. An example of this can be seen in Emaar's development The Views. I would suggest that these currently offer great value."

Justin Stevenson, listings manager, Sherwoods Independent Property Consultants, says Downtown Burj Dubai represents the best value. "At present the price is exceptionally good value as they are back to 2004-2005 levels in some developments."

Mohanad agrees. "Properties with a view of Burj Dubai demand a premium similar to sea views at the moment. However, there may be other factors contributing to the price difference such as quality of finish and the trust in the developer."

Q A Shoreline Apartments unit with a sea view costs considerably more than one with a canal view. Is the sea view unit likely to appreciate more than the canal view?

A "Yes and no," says Justin. "In the short-term, yes: the appreciation will be greater because people will always pay a premium for an excellent sea view and prices are now realistic. In the long-term, both will appreciate at approximately the same percentage, otherwise the difference in price between sea and canal views would become great and unsustainable."

"When the Shoreline Apartments were originally launched, a relatively small premium was attached to the sea view units," says Martin. "Today, the disparity between the sea view and non-sea view units is much higher. Competition between non-sea view apartments is much greater due to the higher supply, therefore these apartments face more pressure in terms of price. Although it is too early to tell, it appears prices of Shoreline Apartments without sea views fall faster in a downturn than their sea view counterparts. It is difficult to say whether these trends will continue as the market matures.

Q How do properties with views of Burj Dubai (like South Ridge) compare price-wise to those with ocean views (like Shoreline Apartments)?

A "They're very different locations with very different buyer profiles, but the prices are almost identical. Both demand about Dh1,200-1,300/ft²," says Justin. "It is very difficult to compare these two types of properties," agrees Martin. "Both hold the strongest premiums in town due to their limited nature and the subsequent exclusivity they offer. But the lifestyle in Burj Dubai is very different to the lifestyle on offer near the beach."

Q Which properties with golf course views rate as good investments?

A Justin recommends Victory Heights, adjacent to the Els Club course in Dubai Sports City. "It offers a superb range of villas and townhouses. With prices almost back to their originals, a C3 villa can be bought for Dh2.5 million. Considering the size and exceptional finish, this represents excellent value." He also rates Arabian Ranches as a safe investment, as does Mohanad. "A Tiger Woods golf course might not offer the best golfing experience for players or the best views for tenants but it will definitely attract interest, largely due to the fame of the course designer and the standard of the development."

Martin says a high-end development like Jumeirah Golf Estates is better suited as an end-user environment rather than an investment property. "Arabian Ranches and Victory Heights offer lower price tags with great investment opportunities. But as Victory Heights is coming up for hand-over and situated on a celebrity-endorsed golf course, it shows the most promise."

QIn your opinion, are water views the poor man's sea views?

A "Yes, although I would not have used those words," says Justin. "You would, in general, pay more for a full sea view than you would for a lake view in The Greens. There are always exceptions to this rule, like the stunning Marina views from the original Emaar Towers." But Martin disagrees. "I wouldn't say so at all. Almost every development has water features; equally every development offers its own benefits and charms. Water views within developments will come at a higher price as opposed to road views. For instance, for somebody wanting to live in Dubai Marina due to its proximity to the highway and buzzing night life, a marina view will still be more sought after than a road view and will therefore carry a higher price."

Q What are the upcoming developments with great views worth investing in?

A "For golf course views it has to be Victory Heights and Jumeirah Golf Estates," says Justin. "If it is water views you're after, then the obvious choice would be Palm Jumeirah and JBR."

"Due to last year's economic downturn, risk appetite has fallen greatly," says Martin. "This leaves current investors in a position to pick up fantastic bargains in upcoming developments that offer exclusive views. For views across Burj Dubai I would recommend the Burj Views development, and for views across the sea there are many upcoming projects on The Palm such as The Golden Mile and Marina Residences."