Choice picks

After a period of uncertainty, real estate agents and various market reports are pointing to a surge in the number of enquiries compared to the last quarter of 2008 and first part of 2009. It is now a buyers' market. There is a distinct change in the profile of the buyers as well. "The majority of sales have been made to owner occupiers who are taking advantage of the opportunity to build equity rather than waste money on rent. Investors are starting to return although in vastly lower numbers when compared to the pre-recession period," says Mohanad Al Wadiya, managing director, Harbor Real Estate. Al Wadiya believes this is the period of acceptance and opportunity. "The market is finally becoming resigned to the new market dynamics. The new real property values have been acknowledged, and the correction is, by and large, nearing its end. The average price has slowed its rate of decline and liquidity is beginning to return to the market. Demand is beginning to rise as economies have begun recoveries and individual buyers are feeling more confident about their own financial situation," says Al Wadiya. So what are the options buyers now have in Dubai? "There now exists a greater range of choice, and buyers can succeed in obtaining true value and quality in the property they wish to purchase," says Al Wadiya. Buyers now consider location, quality construction, infrastructure, facilities, amenities, maintenance fees, return on investment and yield.

Here are Harbor's top five Dubai residential developments based on the number of transactions and enquiries.

1. Emirates Living

It offers a lifestyle suited for urban families and is filled with apartments, town houses and villas. It includes a wide variety of retail outlets and community centres, and is strategically located on Shaikh Zayed Road with easy access to all key business and leisure attractions within the city. The development features projects such as The Greens, The Views, The Springs, The Meadows, The Lakes and Emirates Hills. The Greens has mid-rise apartment blocks and features recreational facilities including swimming pools, gymnasiums, children's play areas and outdoor dining areas and a nearby retail centre, while The Views apartments are in close proximity to the Emirates Golf Club and a lake.

The Springs, a waterfront villa development built around man-made lakes, features single family attached town houses. Typically several villas share a communal pool area. Properties range from two- to five-bedroom units. The Meadows is a premium villa project offering two-storey villas of three to seven rooms, each surrounded by a garden or village, while The Lakes, featuring villas and town houses, is a residential suburb built around a lake and located near Emirates Golf Club and The Greens. Emirates Hills, also known as the Beverly Hills of Dubai, has luxury detached villas. The average price of apartments is Dh950 per square foot and villas cost about Dh850 per square foot. Emirates Hills villas are a bit more expensive at Dh1,700 per square foot. Rents for apartments are in the range of Dh80 per square foot while villa rent is about Dh63 per square foot. Al Wadiya says Emirates Living has its disadvantages too. "Some of the units are aging badly and require major maintenance. Having said that, the master developer is really doing a good job in maintaining and improving the community overall, that's why the values of properties in this development have been appreciating steadily."

2. Dubai Marina

Dubai Marina, according to some recent reports, is one of the most sought after developments in Dubai. Its popularity has grown manifold because of the waterfront lifestyle it offers and the retail strips. "The Marina has become an iconic location and is firmly entrenched as a respected and recognised area of Dubai. Marina Walk and JBR Walk have attracted a lot of interest from investors and visitors alike. With the recently opened Marina Mall, Dubai Marina will gain even more momentum and popularity as a location that offers an affordable and exciting lifestyle," says Al Wadiya.

About 12,000 visitors are estimated to visit the retail strips daily during weekdays, and four to five times this number during weekend and holidays. The Marina also has direct access from Shaikh Zayed Road while some of the popular destinations such as Emirates Golf Club, The American University, the Mall of the Emirates and Dubai Media and Internet Cities can be easily accessed from the development. Some of the prominent projects at the Marina are JBR Towers, Emaar Towers, Al Fattan Towers, Le Reve Tower, Al Sulafa and The Waves Towers. Residential components at the Marina include apartments, podium villas, lofts and penthouses.

Average sales price is Dh900 per square foot while rents range from Dh75 per square foot. Dubai Marina, says Al Wadiya, also faces the issue of relatively high service charges averaging at Dh17 per square foot. The area can also get congested with traffic during peak hours.

3. Palm Jumeirah

Palm Jumeirah is a man-made island development that has attracted worldwide attention, making it one of the most favoured investment destinations in Dubai. "The Palm is a remarkable architectural masterpiece and is now renowned as the eighth wonder of the world. Living within this unique development offers a sense of exclusivity," says Al Wadiya. The Palm's residential units include apartments, penthouses, canal cove homes, garden homes and villas and signature villas. It is also home to a range of five-star hotels, including Atlantis, and offers excellent accessibility to the main commercial, shopping and recreation centres.

Apartment prices are in the range of Dh1,200 per square foot while villas range from Dh1,900 per square foot. A popular rental destination, the Palm's apartments fetch an average rent of Dh80 per square foot while villas get about Dh85 per square foot. Al Wadiya says the issue of cleaning debris and settling waste between the fronds needs to be addressed.

4. Downtown Burj Khalifa

Downtown boasts a strategic central location and the development is home to Burj Khalifa, the tallest tower in the world, and Dubai Mall, the largest shopping mall in the world (based on total area). "These two unique attractions along with a rich and well balanced mix of residential and commercial components make this district a very popular and desired destination," says Al Wadiya.

"Owners and residents have the opportunity to stay in one of the Old Town quarters which symbolise the traditional Arabic style of living, work in the modern day development at Burj Square or in Old Town island, relax and rejuvenate themselves with a stay in one of the world-class hotels surrounding them, including the Address Hotel or any of the adjacent four and five-star hotels within the development. The launch of the Burj Khalifa in January 2010 had a very positive effect on the Downtown Dubai district and the overall property market and economy of Dubai." Downtown Burj Khalifa features a number of projects, including Burj Khalifa, Burj Residences, South Ridge, Old Town, Old Town Island, The Lofts and Burj Views. These projects feature a wide variety of residential units such as apartments of all sizes (furnished, serviced and unfurnished), podium villas, lofts and penthouses.

The current sales prices are in the range of Dh1,700 per square foot while Burj Khalifa units fetch around Dh3,200. Average rental is Dh100 per square foot. Al Wadiya says the only matter of concern for buyers is the slightly high service charges compared to the rest of the market, ranging between Dh20.68 and Dh58.26 per square foot.

5. Jumeirah Lake Towers (JLT)

Jumeirah Lake Towers, located on Shaikh Zayed Road, is the first mixed use free zone residential and commercial community in Dubai. However the development appears to be very much underrated, says Al Wadiya. "JLT has a very good balance between office space and residential offering which will reflect on the lifestyle that it will offer. By itself, it has contributed to the growth and development of the area. It consists of 87 towers, 40 per cent of which are residential space.

The residential units are designed and marketed by various developers, resulting in a variety of features and a distinct interior look for all of these residences. It therefore gives the community a mix of tastes and appearances that will surely cater to a wide range of home buyers," he says.

"For a long-term investment, we would recommend JLT because the prices there are much cheaper than Dubai Marina, which is just across the road from this rapidly evolving development. JLT has the potential to achieve the same status as Dubai Marina; so in the long term, it definitely represents an exciting opportunity." The average apartment price is Dh750 per square foot while rents range from Dh60 per square foot.