Where are Dubai's property hotspots?

08/06/2015 - Dubai Investment News
Where are Dubai's property hotspots?

Just like other top cities across the world like New York and London, Dubai is made up of districts that are more in demand than others and it pays to be in the know if you're considering investing in the emirate's property market in the future.

A new report from PropertyFinder has outlined the trends in the market for 2015 and has highlighted several hotspots across the emirate that buyers should keep their eyes on and are likely to produce the biggest rental yields.

The study noted that these regions are likely to heat up further as the World Expo 2020 draws nearer, particularly for commercial property such as offices and hotels, as demand will be high from tenants and guests.

Michael Lahyani, chief executive officer of PropertyFinder, commented: "Real estate demand is only likely to inch higher in the years leading to the Expo 2020, so if you want to put your money into a home or office, these are the communities where owning and renting seem to make sense."

Here is an overview of Dubai's property hotspots.

Dubai Marina

PropertyFinder's report - which review almost two million visitors to the real estate portal - revealed that most people searching for property are looking in Dubai Marina for their next investment.

The website notes that of all the searches analysed, 18.67 per cent were for units to buy in this district and 18.41 per cent were looking for rentals, which is unsurprising given that the area is a thriving investment hotspot and offers some of the highest rental yields in the world.

Research from chartered surveyor and property consultant firm Cluttons reveals that property prices in Dubai Marina have risen by almost one-third (28 per cent) over the course of the last five years.

Lucy Bush, head of residential sales and leasing at the firm, said that investors have been flocking to the district as it's popular among tenants and tourists looking for beachside living.

The arrival of the Beach Mall, which provides tourists with everything they could need from a holiday, and the completion of the Dubai Tram project have both been major draws for residents and international visitors, which means the attraction of Dubai Marina is likely to continue well into the future.

Dubai Sports City

According to the report from PropertyFrinder, Dubai Sports City has become increasingly popular with buyers, as its "reputation as a property hotspot seems to soar". The study adds: "From not figuring in the top 10 list last year, the community zoomed ahead to eighth position this quarter."

This region is a city within a city, containing state-of-the-art sports venues, hosting international sporting events and housing residential and commercial developments, along with schools, medical facilities, hotels and community centres.

Dubai Sports City's increasingly comprehensive infrastructure is driving residents to move there, creating a bustling and lively neighbourhood, as well as demand for property in the area, which will subsequently lead to healthy rental yields.  

Downtown Dubai

Downtown Dubai continues to be popular among tourists and residents, due to the multitude of apartments available that are on the doorstep of some of the emirate's best places for shopping, dining and nightlife.  

It's also home to the Dubai Mall, which contains more than 1,200 shops in a complex the size of around 50 football pitches, an Olympic-sized ice rink, an aquarium, the largest cinema complex in the emirate and the biggest gold souk - all of which are popular among visitors and people that live in Dubai.

The completion of the Dubai Trolley project will also work to boost activity in the area in the near future, which will lead to increased demand and healthy rental yields.