February 22, 2012
Since the initiation of the oversupply problem with Dubai real estate, the Dubai apartments market was not performing well. The villa market on the other hand was the first market by property type that showed earliest signs of stabilization of 1-2% in prices in the initial few months of the year 2010. Since that, the villas prices have continuously showed spurts of growth on quarterly basis. Opposed to that, the Dubai apartments market remained under pressure due to having less demand from the buyer’s community.
The year 2011 brought some good news for the property in Dubai because the price recovery was experienced in all types of units including apartments situated in many reputed areas of Dubai. The increase in apartment’s prices was mainly noticed in areas, which offered better quality living along with the better structural designs. Dubai Marina is the area, which mostly consists of apartments, and you will find very few villas in it. The real estate transactional data of 2011 shows that that the apartments in Dubai Marina topped with respect to the number of transactions in the first nine months of 2011.
One of the real estate information companies issued the data highlighting 307 transactions in Palm Jumeirah, 553 in Emirates Living, 494 in Business Bay and Downtown Dubai but the highest in Dubai Marina indicating 800 transactions. Because Dubai Marina mainly consists of apartments, this data showed that the Dubai Marina apartments remained all time high in demand. The reason of this high demand is the quality of living and stabilized rentals there as compared to other types of property in Dubai.
One of the websites that indicate number of searches showed that the Dubai Marina remained the top most searched location in Dubai in the year 2011. Even in the last quarter of 2010, out of the total searches, almost 18% of the searches accounted for buyers of the properties in Dubai Marina whereas the 18.02% accounted for rental properties by the tenants. Thus, the demand of the apartments in Dubai Marina remained at its top, which is improving the overall condition of apartment market in Dubai.