Dubai’s new tramway will boost buyer demand in residential areas such as Dubai Marina owing to its proximity to the network, according to real estate consultancy Cluttons.
“The current strength of buyer demand in Dubai Marina has no doubt been further bolstered by the enhancement of critical infrastructure in and around this popular residential location,” said Steve Morgan, head of Cluttons Middle East.
“Phase 1 of The Dubai Tram network, scheduled to open in November this year, is expected to boost buyer appeal even further by offering alternative commuting options to nearby business hubs such as Dubai Internet City, Media City and Knowledge Village.”
Dubai Marina neighbourhood has seen a rise in deal activity from the third quarter last year, according to Clutton’s winter property update.
“It’s not just individual buyers who are rushing to close deals at Dubai Marina; we are also recording a sharp upturn in investor appetite for both tenanted and vacant buildings, driven by attractive yields, which currently hover around the six per cent to eight per cent mark,” said Morgan.
He forecasted a rapid sale of units in buildings such as Shams 1, which is located close to a tram station in the western fringe of the Marina.
Jumeirah Beach Residence (JBR), remained the most sought after location among buyers due to its beachfront location and retail offerings, Morgan said.
“With Meraas’ Jumeirah Beach Village and Blue Water’s development, featuring the Dubai Eye, we anticipate interest to secure a home in Dubai Marina to gather further momentum.”
Dubai Marina also topped the list of the emirate’s most searched locations to buy and rent properties on the online portal propertyfinder.ae.
Dubai’s real estate prices rose more than 30 per cent last year while rents climbed by 17 per cent, according to a Jones Lang LaSalle (JLL) Q4 report.
However the growth in the real estate sector, seen during the later half of 2013, is expected to slow owing to over supply and high completion rates in some sectors, JLL said.