30 October 2023, Khaleej Times
Bukadra Part 2, Sobha Hartland, Al Warsan First, Dubai Harbour and Al Kheeran are likely to witness the highest price appreciation in Dubai in the fourth quarter, a report showed.
According to Realiste AI, a proptech platform, Bukadra Part 2 has the highest forecasted property price growth among all the listed areas. For Q4 2023, the expected price increase stands at 8.12 per cent. “As this area features new constructions, analytics for annual rental yield currently being prepared, but it can already be noted that the lowest average price per square metre is in 3BR units at 22,497, while the highest is in 1BR units at Dh24,919, with projections indicating that the average price for 1BR will grow to Dh24,323, and for 3BR to Dh26,941.
The prospects for average price growth in Sobha Hartland stand at 8.05 per cent. Analytics are available for four types of units in this area, and the annual rental yield is approximately the same for all of them. “Studio units stand out slightly with a yield of 5.7 per cent. The situation is similar to the average price per square metre, with the highest price in 3BR units and the lowest in Studio units at Dh20,387,” the report said.
According to the forecast, property prices in Al Warsan First are likely to increase by 6.99 per cent in the next quarter. The highest annual rental yield is in 3BR units at 7.6 per cent, while 1BR units have the lowest yield at only 3 per cent. “The lowest average price per square metre is also in 3BR units, starting at just Dh6,318, whereas other units start at Dh10,420,” the report noted.
On average, units in Dubai Harbour are expected to grow by 6.18 per cent in Q4 2023. “The class of buildings is rated at a high 98 per cent, and the development level is 2.4 per cent,” the report said. Similar to Al Kheeran, this area provides information for 1BR, 2BR, and 3BR units. 1BR units offer the highest annual rental yield at 5 per cent, on par with 2BR units. The highest average price per square meter is in 3BR units, at Dh42,001.
In Al Kheeran, also known as Dubai Festival City, the forecast for the average price per square metre in the next quarter is 5.58 per cent. In this area, data is available for 1BR, 2BR, and 3BR units. “The most favourable option here is the 1BR unit, offering an impressive rental yield of 7 per cent, surpassing the 2BR and 3BR units with yields of 4.5 per cent and 5.1 per cent, respectively” the report showed.