Despite difficult macroeconomic conditions both Dubai Marina and Dubai Downtown have continued to attract a wealth of interest from investors with prices in Dubai Marina varying between Dh1,362 ($371) per sq ft for ready units and Dh1,749 per sq ft for off-plan units, stated Chestertons Mena, a leading international property agency, which released a special Cityscape report on two of Dubai’s most popular residential communities.

In Downtown prices average at Dh1,884 per sq ft for ready units and Dh1,976 per sq ft for off-plan units.

“Overall, market yields are still proving attractive, particularly in Dubai’s most sought after residential communities. In 2014, Dubai’s real estate market began to show signs of weakening, however, marquee developments continue to exhibit yields that offer investors good returns,” explained Ivana Gazivoda Vucinic, the head of advisory and research, Chestertons Mena.

Since its completion in 2003, Dubai Marina has consistently recorded some of the highest transaction volumes and values in the emirate. From January to August 2017 the total number of transactions in ready-to-move-in units was 1,127 at a value of Dh2.1 billion. The most expensive property sold during that period was Dh29.7 million, it stated.

In the off-plan market there were a total of 830 transactions at a value of Dh1.62 billion, with the most expensive unit sold topping Dh13 million.

The real estate expert said a steady flow of units are set to come online in the run-up to Expo 2020 with over 4,000 expected to be delivered between now and the global showpiece.

This will take the number of units in Dubai Marina to over 27,000 in 117 residential apartment buildings, not including serviced apartments or branded residences. The total number of residents currently in Dubai Marina is approximately 120,000.

"Given the popularity of this world class waterfront development it is hardly surprising developers are eager to participate in projects within Dubai Marina and the surrounding area," noted Gazivoda Vucinic.

"As we move closer to Expo 2020 we are forecasting an increase in prices and number of transactions in the area thanks to the burgeoning hospitality offering and world class residential units which are sure to be a hit with savvy investors," she added.

Dubai Downtown has fared similarly well in terms of investor returns. Often described as ‘one of the most exclusive neighbourhoods in the world’, the relatively mature market is currently yielding 5 per cent per annum with further future capital appreciation a strong demand driver for potential investors.

Home to the Burj Khalifa, tallest building in the world, the largest mall and one of the most spectacular choreographed fountain systems seen anywhere in the world, strong investor appetite has been compounded by a selection of signature properties creating a unique investment dynamic despite economic and oil price distortion, noted Gazivoda Vucinic.

From January to August 2017 a total of 394 transactions took place in Downtown Dubai, at a value of just under Dh1 billion, with the most expensive unit totalling nearly Dh12 million.

In the off-plan market the figures more than tripled with 1,262 units sold at a total price of over Dh3.5 billion; the most expensive property was Dh18.7 million, she added.-TradeArabia News Service