Dubai Marina tops list of favourites among tenants, investors alike
Dubai Marina continues to top the list of most sought-after developments in Dubai for tenants and investors alike said a survey by leading real estate portal.
The survey conducted among 400,000 visitors to the website, including 100,000 properties and 200 brokers said that 17.5 percent of online search among people preferred Dubai Marina, while 16.1 percent chose Jumeirah Lake Towers (JLT), 13.1 percent Palm Jumeirah, 7.3 percent Jumeirah Beach Residence (JBR), and 6.8 percent chose Arabian Ranches.
Even in the rental sector, Dubai Marina topped the list with 16.7 percent choosing it as favourite development, following by JLT at 9.9percent votes, Palm Jumeirah 6.7 percent, Mirdif 5.9 percent and Jumeirah 5.9 percent.
Meanwhile, the once popular rental destinations, Discovery Gardens and International City, showed a downward trend, with only 4.2 percent and 3.4 percent showing interest in them.
The popularity of Dubai Marina has increased considerably, with growing demand from Abu Dhabi commuters as the real estate sector in the capital has suffered a set back due to shortage of units, resulting in high rentals, said Jesse Down, Director of Research and Advisory, Landmark Advisory.
The waterfront location with accessibility to major retail clusters makes Dubai Marina a popular residential area. Moreover, the Marina is a well-established community with a positive feedback loop, drawing more demand, Downs said. But, despite being so, the rents in Dubai Marina registered a 20 percent decline, as per the Rental Index by RERA.
The rent declines are driven by sharp growth in supply and weakening demand fundamentals. The supply in Marina, including JBR, has grown by nearly 20 percent this year. There is a three-year pipeline for the area, which could keep rents from re-bounding any time soon, Downs points out.
Meanwhile, with several projects nearing completion and close to handover in Abu Dhabi, it is likely that several people working in Abu Dhabi and living in Dubai will consider moving into the capital. Given, the increasing supplies and dropping rentals in Abu Dhabi, commuters are likely to be attracted back to the capital, and this trend may gain momentum in 2011 and 2012, which could have a major impact on Dubai Marina and JLT, Downs said.