It was planned as a budget project, hence the launch prices were low compared to those of other developments in Dubai. Today Jumeirah Beach Residence (JBR) is a popular destination for buyers and tenants alike. While the whole development is in demand, there are a few towers within JBR that are more sought-after. So, which are they and what sets them apart?
JBR features six projects — Murjan, Sadaf, Bahar, Rimal, Amwaj and Shams. When launched, the units were available for prices as low as Dh350 to Dh375 per square foot. "A three-bedroom apartment with full sea view in JBR could be bought for Dh699,000," says Chirag Vyas, who owns a unit in the development, and is a senior sales consultant at Ocean View Real Estate. Location is one of the most important aspects that make JBR a favourite destination for buyers. "The location is fantastic," says Chirag, adding that JBR's proximity to the beach makes it a hot residential development.
"When you look at the Marina, pretty much all of the sea has been taken by JBR. There is no other freehold residential development on the beach here apart from Al Fattan Towers, which belongs to a high-end category. The first option for those looking for a property in the Marina with sea views is JBR or District One of the Marina, which includes Le Rêve though it isn't exactly on the beach. If someone wants to be close to the beach, JBR ticks all the boxes," he adds.
Also the JBR Walk is an immensely popular destination for residents from JBR as well as other developments in Dubai. It has a number of restaurants offering a wide variety of cuisines at prices that appeal to everyone. "A lot of money has been pumped into the JBR Walk. People prefer to keep a non-performing outlet because it has the potential. There are five Starbucks coffee shops and five Subway outlets within a one-kilometre stretch, just to cater to that population alone," explains Chirag.
With an increasing number of hotels catering to various budget ranges, JBR is being hailed as a holiday destination too. However, Chirag says JBR does have its share of disadvantages. "There is no gym (there are paid gyms though) and people are still contesting the service charge fee, which is Dh15 per square foot," he says. Despite these shortcomings, he thinks Dubai Properties has delivered a good product.
The top three
Chirag picks three out of the six projects in JBR as the most popular ones — Murjan, Bahar and Rimal. There is a lot of demand for units within these phases. Murjan is located right at the beginning of JBR, giving its residents better accessibility compared to the rest of the towers. "Murjan is where JBR starts and it opens out to the beach. It is close to the Sheraton, the Hilton and Habtoor Grand," says Chirag.
He selected the top three based on the fact that they are located closer to the beach and the buzzing area of the JBR Walk and also because they feature ample parking space. "Murjan phase is more popular because it is at the beginning. With JBR, the downside is if it were to be occupied more than 60 per cent there is likely to be a traffic nightmare, Murjan will offer the best accessibility to its residents compared to the other phases," says Chirag. Bahar and Rimal are popular because that is where the public beach and the free parking lot are located.
Prices, vary depending on views
When the project was launched, all the six phases had more or less the same price points. Once they were completed, prices began to fluctuate depending on a number of factors. However, even now prices of units in Murjan, Bahar and Rimal are almost the same. Chirag says prices vary depending on the views units offer and the side of the towers they are located.
"Murjan has six towers out of which three are sold as slightly premium. For example, a unit in the front would command at least 25 per cent more than a unit within the same tower with a Marina view and would be 30 per cent more than a lower floor unit with courtyard view, which is dark," says Chirag. Units in the lower floors usually get sunlight only between 12pm and 2pm, which basically means residents may have to live there with their lights on most of the time.
Chirag says a courtyard-facing three-bedroom unit is available for Dh1.35 million but an identical unit with the same layout facing the sea costs more than Dh2.4 million.
"The current price for such units is Dh2.7 million but that's realistically the price we are closing at. A three-bedroom unit in JBR is between 1,850 and 2,000 square feet, so the average asking price is Dh1,200 per square foot, which is a fair market price. Top-end units are the ones with full sea and Palm Jumeirah views and then full sea view towards Jebel Ali," he adds.
The price difference of these units with courtyard-facing lower-floor units is often 60 to 70 per cent. There is a lot of demand for Palm-facing units and they command about Dh1,250 to Dh1,300 per square foot. Since studios are scarce in JBR, their prices are pretty much stabilising now. Chirag says the price per square foot dynamics won't apply to a studio because there are very few of them and everybody is after the sea-facing studios. For example, the size of a studio in JBR is approximately 650 to 720 square feet with terrace and sea view and the price at the moment is Dh1,500 per square foot, which is more than the price of bigger units.
A lot of Indians and Iranians bought units in these projects when they were launched as it was closer to the beach and also prices were cheaper. Currently JBR is home to many nationalities. It is very popular with Russians now. Chirag says a lot of Europeans who cannot find a property on the Palm come to JBR as it is the next big thing close to the beach and also offers Palm views.
"A lot of Emiratis from Abu Dhabi and the northern emirates have invested in JBR and use the units as holiday homes," he says. Demand is expected to grow during summer when a lot of Russians are expected to come looking for distressed sales.
"First they go to Oceana and Tiara and then they will come to JBR. These are serious buyers and they are looking for distressed sales but not dramatic distress — maybe 2 to 4 per cent below current level for the good units, says Chirag.
Rental demand is strong
JBR has always seen a lot of demand from tenants. Laura Humphrey, leasing manager, Ocean View Real Estate, says the demand for rented apartments is not limited to any particular phase. "Murjan, Bahar and Rimal are popular among buyers because it is easy to rent out those units, but as far as renting is concerned, all the phases attract tenants," she says.
Studios are hard to find in the rental market. A one-bedroom apartment can be rented for Dh60,000, two-bedroom for Dh80,000 and three-bedroom units for Dh100,000. "These are the cheapest options with courtyard views," says Laura, adding, "Rents for units with nice Palm views are higher. For example, for a three-bedroom with sea views you will have to pay about Dh140,000 to Dh150,000."
