The year 2011 remained very confusing for Dubai properties sector as it ended with mixed signals about the recovery of this sector. Despite such confusing reports, 2011 pointed towards better recovery of some locations in the upcoming year. Dubai Marina, with a successful track record of being the hotspot for investors, was at the top of list among these locations.
Before the collapse of Dubai properties sector in 2008, it was quite challenging to invest in Dubai Marina property due to its high asking prices. After 2008, the price of property in Dubai Marina declined up to 30%. The year 2012 began with great optimism about property prices in Dubai Marina and to the date, the community has performed even better than what was predicted about it. You can have an idea about the recovery of prices in Dubai Marina from its performance in 2012.
Performance in Q1!
Due to increase in demand and inflation, rents of Dubai Marina apartments increased by 10.4% during Q1. In the same quarter, a four bedroom apartment in Dubai Marina was being rented on an annual basis at Dh 81.84 per square foot. When Al Sahab Tower 1 and Amwaj Tower 4 in Dubai Marina were sold at above 45% and 20% of their bid price respectively, it clearly indicated a drastic increase in demand and sale prices of apartments in Dubai Marina. For a 4 bedroom apartment being rented at AED 140,000 annually, it was predicted that the price would hit AED 200,000 by the end of 2012.
During the same quarter, it was reported that 974 realty transactions took place in Dubai Marina which boosted investors’ confidence. This increased confidence can be credited for the improved performance of Dubai Marina apartments during Q2.
Performance in Q2!
The performance of Downtown Dubai and Dubai marina apartments in Q2 so far has revealed that their rate of rents jumped by 10% as compared to the first quarter of the year. Now the two bedroom apartment in Dubai Marina is being offered at an annual rental rate of AED 90,000 to AED 120,000. The sale price of apartments also increased in Dubai Marina, Downtown and the Palm Jumeirah during the same quarter.
With some properties in Dubai the cost price increased by 8% whereas for the same sized apartment in Downtown Dubai, the cost price increased by 9%. This revealed that the recovery in Downtown Dubai is also gaining momentum and trying to compete with the recovery rate in Dubai Marina. During the second quarter, two towers in Dubai Marina are delivered in the market and an additional supply of 2,300 more units is expected to become part of properties in Dubai Marina by the end of this year.
The performance of the Dubai Marina property during first six months of the current year has spread much positive vibes about its performance in future. Experts are predicting that Dubai Marina property would continue to strengthen Dubai property sector in general during the next two quarters. In this scenario, the higher capital growth makes Dubai Marina highly beneficial to investors from investment point of view. In order to earn more non-taxable and high capital gains in near future, the investors must invest in Dubai Marina apartments today.