Dubai property: Are developer discounts making JVC, JLT more affordable?
For budget-conscious buyers, JVC, JLT are worth exploring for good deals
Dubai: Through the last 4 years, there’s been one theme in any talk about buying a home in Dubai - that property values are going up and that investors will need fairly deep pockets to buy one that fits with all their dreams.
This is still the state of affairs accompanying most Dubai property purchases even now. But, there could be some more favourable options opening up for the patient investor, in two specific locations.
In JVC (Jumeirah Village Circle), the average price per square foot (psf) seems to have softened – from November 2024’s Dh1,272 psf to Dh1,170 for offplan purchases, according to a new report from the consultancy Reidin-GCP. At first glance, it may not seem much, but if you are buying a multi-million dirham home in JVC, the current lower average price per square foot does help save some.
Now, JVC has been Dubai’s most actively traded offplan residential cluster for 2-3 years now.
Is the price drop all to do with simple supply and demand dynamics? Not so, say real estate sources, adding that it’s more to do with the ‘discounts’ from developers for the latest offplan launches in JVC.
“When new launches in JVC are happening at the rate of one-a-day, or close to that, the discounts bring down the average price per square foot for the wider development,” said a spokesperson for GCP. “We can clearly see this happening at JVC and to an extent in JLT (Jumeirah Lake Towers) district.”
Which Dubai locations feature highest listings?
Properties in JVC represent the highest number of listings among freehold clusters in Dubai. According to eXp Dubai data, one in 10 of all homes currently listed in Dubai are found within Jumeirah Village Circle. In second place comes Business Bay, the high-rise hub, where 6.4% of all Dubai properties listed for sale are found. The Dubai Land Residence Complex comes in third with 6%, followed by Dubai Investment Park (4.1%) and Dubailand (3.4%). But by end of this year, there will be significant competition from Dubai South, as more developers make their offplan push.
So, what discounts or offers are available?
The obvious developer giveaway to a prospective buyer is offer a discount on the offer price. They could also structure the sale deed by providing the buyer with a guaranteed return over a certain number of years. (Or the lower psf may show up when the developer offers higher than average commissions to brokers.)
Why JVC prices matter
According to data from eXp Dubai, JVC has nearly 12,000 ready and offplan listings being advertised. “The area has become particularly popular amongst those in search for greater affordability,” the report finds. “No surprise then, that more than one in 10 (11.3%) of all homes listed across the market in Dubai are found within Jumeirah Village Circle, making it the most active segment of the Dubai real estate market at present.”
Check out JLT too
Some of the pricing trends brought on by developer discounts are visible in JLT transactions. The high-rise cluster has been a hotspot over the last 20 years, with prices pushing higher once the post-Covid boom in Dubai real estate got hold.
The dynamic has changed ever so slightly these days.
According to Reidin-GCP data, JLT prices peaked in October 2024 at 1,889 psf for offplan buys, while ready property prices peaked in February 2024 at 1,477 psf. “Since then ready property JLT prices have fallen to 1,350 and overall prices have fallen to 1,739psf,” said the report.
“There aren’t that many new launches happening in JLT unlike in JVC,” said the GCP spokesperson. “But the softening in JLT property values is again due to generous developer rebates. It’s a good time to be doing value hunting for property in Dubai.”
Dubai’s property launch scene picks up speed
After a relatively subdued launch run in January, UAE developers have been ramping up in recent days. There was Azizi lining up the sales launch for a new Sheikh Zayed Road skyscraper and which it will build to be the world’s second tallest in the world. After the Burj Khalifa, which is located on the opposite the ‘Burj Azizi’. And then Aldar has come up with ‘The Wilds’, which will come heavy with the trappings of nature along with the luxury homes that will get built there. They won’t be the only launches lighting up UAE’s property market scene in the weeks ahead.
More buyers in Dubai are doing just that. Especially as developers shift their strategies to win over end-user buyers rather than focus exclusively on offplan buyers. Local mortgage rates will need to see further US interest rate cuts to make it more affordable for end-users.
Until that happens, developers will keep buyers interested with discounts and more. And a lot of that would continue to be in JVC…
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