Dubai works to be 'Mecca' of suburban living by 2023
The coronavirus pandemic has not only made us realise that we are not impregnable, it has altered our pattern of living. In a world where the urban population thrived exponentially, in part, because of career opportunities, a shift has occurred. The demand for townhouse communities and villas is the new goal for families wanting to form a household. The new developments will go some way to reducing the pressure on the emirate's real estate market, according to Lewis Allsopp, CEO of Allsopp and Allsopp Real State.
As reported by The National, real estate experts in Dubai said that the popularity of neighbourhoods in the city's suburbs is in line with a migration away from flat living in central Dubai, which began during the pandemic; and that properties in new developments are expected to be highly sought after, but will not be cheap, as property prices in Dubai soar well above pre-pandemic levels. The UAE's Dubai Land Department has launched a strategic plan aimed at positioning the city as a world leader in real estate investment.
According to a report published by WAM news agency, the main task of the strategic plan is to ensure smooth real estate services in Dubai while introducing effective legislation and the human capital necessary for the growth and development of the industry. The strategy, which will be implemented until 2026, also aims to increase the real estate sector's contribution to the UAE's GDP, which in turn will play a crucial role in helping Dubai become one of the world's most developed economies. The WAM report also states that the strategy is based on five key pillars of industry growth.
The first pillar aims to create a real estate model that increases industry readiness and sustainability while ensuring effective industry governance. Under the second pillar, Dubai aims to become a real estate incubator by fostering a globally attractive environment and using technology to develop real estate solutions. The third pillar of the strategy focuses on a data-driven approach, while the fourth pillar will promote the flourishing of the digital real estate ecosystem. The fifth focuses on shifting to an employee-focused culture and adopting a people-centric vision.
Townhouse and villa communities have attracted large numbers of families, especially in areas with many amenities and many international schools nearby. We also see new couples moving into these neighbourhoods, especially those who work from home or part-time, coming into the office 2 to 3 times a week, the experts concluded. "The two most notable master communities to be delivered in 2023 are Arabian Ranches 3 by Emaar and Tilal Al Ghaf by Majid Al Futtaim," said Lewis Allsopp, CEO of Allsopp and Allsopp Real Estate. Deliveries in the first and second quarter will be three and four-bedroom townhouses.
When it comes to the rent people can afford, it is suggested to use areas with similar buildings nearby as a guide. "We expect the three-beds in Ranches 3 to rent between $38,000 and $41,000 and sell for around $550,000," he said. The National reported in November how demand was growing in the nearby neighbourhoods of Mira and Town Square, which will house 85,000 people once the expansion is complete. Allsopp said the new development will relieve some of the pressure on the UAE property market. "Demand during 2023 is expected to far outstrip supply about to hit the market, and most developments launched after Covid are not expected to be delivered until late 2024," said Simon Baker, managing director of Haus & Haus Real Estate.
Meanwhile, recent data released by the Dubai Land Department (DLD) showed that, as of 26 December, the Dubai real estate market reported 515 sales transactions worth $408 million and 19 gift agreements worth $38 million. According to DLD data, the sales included 483 villas and flats worth $310 million, and 32 plots worth $81.5 million. However, the new townhouses will really appeal to young families looking for the extra space and amenities that come with parks, swimming pools and quality living.
