The glitzy villas and apartments on some of the much sought after Dubai waterfront areas commanding sky-high premiums is no brainer, but here is a golden opportunity to hit the jackpot with affordable housing projects in some of the ‘not-so-much-known’ waterfront area projects in the city.
Affordable housing assets in some of these waterfront area projects are projected to see a price jump of up to 61 percent in a 1-3 year period.
Waterfront properties in Dubai
Al Thanyah Fourth Part 2, Jumeirah Part 4, Jumeirah Park Part 1 and Hessyan First Part 1 – all located next to Gulf Bay – are among the waterfront projects listed by leading Dubai-headquartered proptech Realiste, which uses AI-based analysis to predict future market trends.
Al Kheeran, situated at Dubai Creek, is another low-priced waterfront project which is slated to see a surge in demand and price in the coming years.
The average property prices in these areas are currently estimated under AED3,500,000.
“Hessyan First Part 1 projected to experience the highest growth at 61 percent,” according to Realiste’s AI-based prediction.
“The second notable option is Al Kheeran, where prices are expected to rise by 38 percent over the next three years,” the company said.
According to Realiste’s report, both areas are currently undergoing development, which means that additional infrastructure will be introduced, resulting in higher property prices.
The cheapest area among the list is Hessyan First Part 1, with the average cost of property in this district estimated at AED738,000.
“Dubai is located in a desert, making water one of the most valuable and sought-after assets. Many international buyers are drawn to properties near the water, and with limited supply in all markets, this has supported price growth and premiums,” Alex Galtsev, co-founder and CEO of Realiste, told Arabian Business.
“We believe that this trend will continue for the foreseeable future,” Galtsev said.
Realiste said according to its AI-based prediction model, all of the identified areas have the potential to grow by over 20 percent on a short-term basis.
“Our list features affordable housing options and highlights areas that are poised for significant growth, making them attractive investment opportunities for those interested in Dubai’s real estate market,” it said.
Industry experts said there is a clear positive correlation between waterfront locations and property prices in Dubai, with properties near the water commanding a premium of about 40 percent in 2022.
Factors driving the trend
Several factors contribute to the trend of rising preference for waterfront properties in Dubai.
Besides the stunning views – a major factor associated with luxury and exclusivity – these projects tend to be located in high-demand areas such as popular tourist destinations or business districts, which help drive up prices, industry insiders said.
Waterfront properties in Dubai are also often part of high-end developments that offer top-notch facilities and services, such as fine dining restaurants, luxury boutiques, and high-end spas, which further increase property prices.
Limited supply of properties near the waterfront, coupled with their ‘exclusivity’, makes these properties a good choice for long-term investment.