Dubai communities see higher demand

Upward trend beginning to force prices up in locations such as Reem and nearby areas

Dubai’s residents need not wait until the projects at Dubai South take shape for more pricefriendly homes. Locations in and around Al Barsha and off Dubai Bypass Road are seeing new communities coming through offering them such an option.

There is Town Square as well as Reem and the new additions happening at the Mira. “The entire Reem community should be handed over by December 2018 with a total of 3,291 units,” says the Property Monitor Supply Tracker from Cavendish Maxwell, the consultancy. And “1,393 town houses are currently under construction in Mira Oasis and the first handover [is] to be Mira Oasis 1, set to deliver 467 units by December.”

Buyer interest

The demand gains these communities are starting to show up in the selling prices. Reem, which has been a major recipient of buyer interest, now has an average price of Dh786 a square foot, “making it one of the few communities to show growth over the last quarter”, the report adds.

Even then, “Reem still stands as one of the most affordable areas in Dubai to purchase a town house in comparison to more expensive nearby areas such as Arabian Ranches, which start from Dh1,045 per square foot.”

Five phases

Reem, which will feature a central park, is positioned near the Arabian Ranches Golf Club and six and a half kilometres from Global Village.

Mira, the first phase of the community, was launched in 2013 and splits into five phases. The initial handover of 1,898 town houses started in the fourth quarter of 2016.

“Mira’s average rent for a three-bedroom town house is Dh150,000 — as demand has increased, tenants have been less able to negotiate on the number of rental cheques required and forced to settle by paying more upfront,” the report notes. “In January, 50 per cent of rentals included two cheques and 50 per cent included four cheques.

“However, in June, we saw one-cheque rental payments dominate the market by 71 per cent. This is conflicting with the general market trends elsewhere, where the number of cheques are increasing to six and sometimes 12.”