Dubai’s last affordable waterfront developments

In today’s issue we compare three of the most promising waterfront developments:

• Dubai Maritime City;

• Rachid Yachts and Marina (RYM); and

• Dubai Islands.

The three developments have a lot in common, however also have a few important differences.

We had a separate issue only about Dubai Islands beginning of the year. This was our first issue actually. I like Dubai Islands particularly well, for a number of reasons. My spouse is always on the lookout for the next great waterfront opportunity. With curiosity, she explored what Dubai Islands has to offer. It didn’t take long before we decided to invest in this promising location. However, the other two developments – Maritime City and Rashid Yachts & Marina – also deserve equal attention. If we had the funds, we would gladly invest in all three, as each location offers unique advantages and exciting growth potential.

Why so much content about waterfront developments?

The case for waterfront property in Dubai is very strong. Dubai is one of the fastest growing global cities. Property prices per square foot are lower than in similar global cities while Dubai provides a lot of value other cities don’t. (check out our eBook for more details). So eventually most properties will increase in value. But there is also still a lot of undeveloped land. More and more projects are coming up. We have already seen substantial increases in villas and townhouses because they need a lot of land. But apartment buildings need less land, much less. Waterfront is also scarce. Most waterfront areas have already seen substantial appreciation. Anyone who bought in Bluewaters, Emaar Beachfront or Palm Jumeirah a few years ago has made a lot of money. Maritime City, RYM and Dubai Islands are still quite affordable and have a lot of room to grow. There are other waterfront locations like Creek Harbor, Marina or the Calabrian side of Business Bay. But this is not the sea. There is nothing like the endless blue horizon of a real sea view.

So let’s compare the three developments:

Location - The three developments are neighboring each other. Maritime City is the southern most. It is about at the height of Karama. RYM is at the height of the Creek. Dubai Islands is opposite Deira Gold Souq. Due to RTA’s Shindaga corridor improvement project, driving time to downtown is only 15-25 minutes from most buildings in either of the three locations.

Community feel - RYM is an Emaar community. All buildings and facilities are developed by Emaar. All retail is managed by Emaar. RYM will therefore provide a homogeneous community experience. Apartments will be of consistent style and quality.

In Maritime City, different developers have bought plots and are developing buildings. There will be a greater diversity of styles and the retail is not centrally managed. However on the top part of the island Omniyat has bought 11 million sqft of land. 3 msqft is reserved for their ultra luxury Dorchester Collection. 8 msqft will be developed by their affordable luxury brand Beyond. Beyond will develop a community comprising ten towers, a private beach and many facilities. There will be a lagoon and a retail promenade managed by Beyond. Residents of other buildings might have to drive a bit for shopping and eating out. Part of the island is currently an industrial zone. However this will be converted to low rise residential in the near future.

Dubai Islands was master-developed by Nakheel. The villa communities on Island B are by Nakheel. There are rumors that one of the other islands was sold to a developer of ultra luxury communities. The apartment buildings and hotels on Island A are developed by individual developers. However buildings will not have any retail. In the middle of the island there will be a huge mall operated by Nakheel. So the retail experience will be managed. A good variety of restaurants will be ensured by the hotels and the mall. Dubai Islands also has more than 20km of beaches, several of which are public and in walking distance from many buildings. The island will also have parks and open green spaces.

Pricing - In all three locations prices have been increasing. Beginning of last year several buildings launched with starting prices below AED 2k per sqft. More recent launches are closer to AED 3k/sqft. The difference is not only appreciation. Most newer launches are also in better locations. In the case of Maritime City and Dubai Islands, most more recent launches are also buildings of higher quality. However pricing is still substantially below comparable seafront developments. Emaar Beach and Bluewaters Island are closer to AED 5-7k/sqft.

All three developments have excellent opportunities. On Dubai Islands’ Island A, most buildings on prime waterfront plots are already launched. A few are still to come and are expected at higher pricing. A lot of non-waterfront buildings still haven’t launched and might come in the near future. Appreciation of previous launches is still moderate and every now and then there are also cancellation units available. On RYM there are still several plots and Emaar will continue launching buildings at increasing prices. On Maritime City, Beyond will also continue launching the remaining 7 towers. Here also prices will continue appreciating. It might therefore be a good investment decision to get in now, while prices are still reasonable. However when considering buying a new launch in a multiphase community, you always need to check also the secondary market to see what the previously launched units are selling for. Sometimes those can be bought below the price of the new launch. You need a bit more cash, as the seller will already have made a few payments and also would want a premium. However if you get a better price for a unit that will be delivered earlier and if you have sufficient cash available, it might be worth it. Sometimes however the newer launches are also in better locations. Developers often sell the best locations last to maximize their returns.

Below are the buildings that have just been launched and those expected to launch very soon.

Good projects always sell out quickly. In case you are interested in buying a property in Maritime City, RYM, Dubai Islands or any of the other areas, please let us put you in touch with a specialist for the respective area who can secure you the unit best fitting your requirements.

We guarantee you will not get unwanted or pushy calls from our agents. The agents we work with are independent from us, go through a stringent continuous selection process and will only contact you in the way and at the time you choose. If you have any bad experience with them, please let us know and we will address the issue right away.

The below table includes the recent launches in all three developments for comparison:

Also, let’s not forget the upcoming projects in other upcoming areas.

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Feel free to share your feedback on this article or on topics you would like us to cover by replying to this email.

In case you have missed any of our previous issues:

Dubai Islands - One of the hottest seafront opportunities

Dubai South - Dubai strongest growth engine

Villas and Townhouses - Land is getting scarce

Financing Property in the UAE - Smart financing can optimize your return

Jumeirah Garden City - The latest project in Dubai you haven’t heard of

Nad Al Sheba North - Luxury in harmony with wildlife

Communities - How developers create value

If you know someone who would benefit from our content, please share with them.

Until then, keep it up.

Stay tuned,

M&M

Important Notice:

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