Opportunities for expat and overseas investors to own modern and contemporary freehold units in Jumeirah is now greater than ever, say experts, observing a healthy demand in the area. Owning a property in this charming neighbourhood was once out of reach for the expat community. Not anymore. An overwhelming number of buyers and end-users in the Jumeirah area are now buying properties as primary residences or as a vacation homes, says Sam Lange, senior consultant at Luxhabitat Sotheby’s International Realty.
Most of the new projects here enjoy quick access to the beach and different bars, restaurants and lounges, ideal for those who want to enjoy the finer things in life. Projects such as the Madinat Jumeirah Living (MJL), La Mer, Bvlgari Residences, CityWalk and Pearl Jumeirah (Nikki Beach residences and plots) are much in demand.
Richard Waind, Group Managing Director, Better Homes, calls Jumeirah the “Dubai riviera” that offers luxury seafront living, ideal for high net-worth buyers looking to park up their yacht outside their winter second home. Port De la Mer, for instance, promises a retreat-style island life, while City Walk offers opportunities for expats and overseas investors to own chic apartment-style units.
Buying to rent
Waind points out that the investors buying in Jumeirah usually prefer to rent long term and not sell units on completion. “It is very rare to find a secondary market good stock in these projects,” he adds. “We have observed a highest selling demand for La Mer and Bulgari Residence.” Average annual rent for Bulgari Apartments in Jumeirah Bay Island ranges between Dh300,000 to Dh380,000 for a one bed, Dh380,000 to Dh450,000 for two-beds and Dh480,000 to Dh580,000 for three-beds.
“There has seen a considerable drop in City Walk rents over the past six months or so. Annual rents for unfurnished City Walk apartments range from Dh100,000 to Dh115,000 for one beds, Dh125,000 to Dh140,000 for two beds and Dh165,000 to Dh180,000 for three beds,” says Waind.
Jason Hayes, Founder and CEO, LuxuryProperty.com says freehold communities of Jumeirah consist primarily of apartment projects, offering a contemporary aesthetic and a way of life best suited to youth and modernity.
“Bulgari Residences adds in a limited selection of penthouses lofts and mansions, while Pearl Jumeirah contains a sizeable villa and mansion neighbourhood and is one of the most exclusive communities in Dubai.” Low-rise buildings, large open spaces and pedestrian-friendly neighbourhoods are the key selling points of Jumeirah’s freehold projects, he adds. “Whether we look at the La Mer master project, City Walk or Bulgari, you will find in each of them a promenade where residents can stretch their legs,” he observes. They also contain a wide range of dining options, from eclectic cafes to fine dining, as well as plenty of retail, boutique cinemas, and other leisure attractions.
He adds that demand has been very high in each of these projects upon launch, and it continues to soar. “Despite everything happening around the world, we have seen no shortage of enquiries coming in. And there has not been much of a price drop. You cannot look at a good deal in these areas about price; rather, you have to look at the payment terms, which have become much more relaxed. If you want to purchase a brand new home with a generous payment plan, these are excellent areas to consider,” he says.
“Apartments across all of the projects in Jumeirah vary from one to four-bedrooms, with starting prices at Dh1.17 million for Madinat Jumeirah Living and Dh1.3 million for Port de La Mer. City Walk goes a bit higher, starting at Dh3.2 million, whereas Bulgari starts from Dh8.92 million. On Pearl Jumeirah, you have Nikki Beach with apartments starting at Dh 2.75 million, while the Pearl Jumeirah villas will cost you Dh 12 million. The island also has a select number of plots available, starting at roughly Dh 5 million.” Investors can expect a yield of 5 per cent plus, and there is a lot of room for capital appreciation in the medium to long term, particularly as newer infrastructure continues to develop, says Hayes.