Dubai’s property market has seen strong growth in recent years. However, home prices in many popular areas have become quite high. Many buyers are now looking farther out from the city centre to newer suburbs for more affordable options.
According to the article, buyers are interested in communities like Arjan, Majan and Furjan. These areas are developing fast with new housing projects. They offer lower prices compared to places like Jumeirah Village Circle, which used to be the top choice for mid-range properties.
Developers are taking notice of this trend and launching new projects catering to mid-income buyers. One project mentioned is called “The Central Downtown” in Arjan by Aqua Properties. It will have over 1,100 apartments plus retail space. The developer says it aims to make daily life more convenient for residents.
Other areas like Jumeirah Village Circle and District Seven will also see many new homes complete this year. In total, around 5% of all new units delivered in 2024 are expected to be in Arjan. That equals approximately 1,500 new apartments.
This growing supply of housing in emerging suburbs is good news for buyers on a budget. Land prices are still relatively low compared to long-established areas. So buyers can find bigger or newer homes for similar prices.
Some investors are also interested in these areas. They plan to purchase off-plan units and rent them out once complete. Rental demand is predicted to rise as the suburbs develop with more residents and businesses.
Developers are taking steps to attract more buyers. One is reducing the minimum 50% down payment for properties worth 2 million AED or more. This makes large purchases more affordable.
In Majan, Samana Developers launched a new twin-tower project costing 1.4 billion AED. Prices start from 674,000 AED per unit. The developer said Dubai made the process of applying for long-term residency visas easier by lowering the investment threshold. This could bring in more demand.
If demand remains strong early in 2024, it could shape up to be another strong year for Dubai’s property sector. Price increases may moderate compared to 2022-2023, but values are still predicted to rise overall.
Buyers now have many new options in emerging areas that offer affordable homes and good value. As these suburbs grow with residents and facilities, they are poised to become popular locations for both homeowners and tenants in the coming years. Only time will tell how the market performs, but Dubai’s new “suburbs” seem set to play a key role in the city’s ongoing growth.
