For several months now, news about Dubai real estate market have focused on affordability and the need for addressing a growing demand for mid-income housing. Having been at Cityscape, you could clearly see that affordability trend across several developers' stands such as Emaar, Damac, Danube and MAG Group to name a few.
But from a development point of view, there are in my opinion two areas that will lead that affordability market: those are Al Furjan and Dubai South. Al Furjan is located within Jebel Ali, not far from Ibn Battuta Mall. Some call it the Discovery Gardens 2.0. One of the most active developer in the area is Azizi which have 8 residential buildings and 2 serviced hotel apartments. 4 out of 8 residential are being handed over this year and the remaining in 2017. The buildings comprise of 1, 2 and 3 bedroom flats.
At launch, the one bedroom apartments were going for as low as AED 869,000 for 900 sqft. Should you consider buying now, you would have to invest a bit more as current prices start from AED 1,085,000. Already within a year capital appreciation has gone up 24%. And that’s even without the new metro stations expecting to be open in 2018.
The second development, Dubai South, will be located a bit further out. This is basically the master development that will surround Al Maktoum Airport (which will be the largest airport in the world and should be home to Emirates Airlines from 2020). It will be composed of 6 main districts: Aviation, Commercial, Exhibition, Golf, Logistics and Residential. The Residential area known as The Villages will have different developments: Mag 5 Boulevard (low rise residential buildings), Emaar South (townhouses) and The Pulse (apartments and townhouses). Emaar has already sold out its first phase (which had two bedroom townhouses for approximately AED 700,000) and the second one is highly anticipated. The newly announced affordable homes in The Pulse cluster will have studios quoted to go as low as AED 280,000. Thanks to those low asking prices, units are likely to generate high yields. Launch is due for end of this month and is likely to see unprecedented interest from home buyers and investors alike. Handover is scheduled for 2019.
Al Furjan and Dubai South are offering end users and investors alike the opportunity to own superior-quality product in affordable communities that will be in direct connection with the Expo 2020 site and in close proximity to the Al Maktoum International Airport. They are set to become a benchmark for affordable housing and in the long term, more developers are likely to come up with their own housing projects aimed at the rapidly growing mid-income group which will be an important bracket of Dubai’s society.