One of the city’s most vibrant and sought-after communities, Dubai Marina is an extensive waterfront development. The focal point of the district is of course the marina, a beautiful man-made bay that leads out to the Arabian Gulf. LuxuryProperty.com CEO and founder Jason Hayes, says, “The marina offers an exceptional lifestyle in Dubai, which cannot really be experienced anywhere else in the city. A beautiful boardwalk, a selection of fantastic restaurants offering an international range of cuisines, high-end shopping destinations and a pristine beach are all located a few minutes’ walk from each other.
“This diverse lifestyle offering has attracted a diverse crowd as well, with residents hailing from across Asia, Europe and the US. For the past few years, Dubai Marina has consistently been rated as the most popular residential area in Dubai and, with stunning new developments like Marina Gate and the soon to be completed Bluewaters Island, I have no doubt that it will continue to maintain a very prime position among Dubai’s luxury neighbourhoods.”
The demographic of purchaser is varied and doesn’t necessarily have to be boat owners. Richard Paul from Cluttons Dubai explains, “Investors understand that any real estate that provides waterfront views and access is likely to come at a premium. Should the property come with vessel berths, I think this is taken as an additional benefit but not a focus from a purchaser point of view.
“Considering the sheer abundance of waterfrontage Dubai has, other than Dubai Marina, there are surprisingly limited berths available that are attached to real estate schemes. In my opinion that will likely change, particularly with the opening of the Dubai Canal. Boat owners or aspiring boat owners still have to consider the relatively high costs of marina facilities in Dubai compared to that of Abu Dhabi and the Northern Emirates. Should the cost become competitive and the facilities at a suitable standard, I can only see that benefitting the real estate offering it fronts.”
As for future price indications, Faisal Durrani, head of research at Cluttons, advises that Dubai’s property market, like many other major global cities, is going through a period of softening. “After spectacular growth following the city winning the rights to host the 2020 World Expo in 2013, values have fallen by almost 15% and now stand some 30% below their Q3 2008 peak.”
The decline however has not been uniform across the board, with established and sought-after locations such as Downtown Dubai and Dubai Marina seeing values holding relatively steady and unchanged. “The outlook for Dubai’s residential sales market is very much hinged on the city’s ability to absorb the significant supply pipeline of circa 134,000 units due for delivery between now and the end of 2020,” says Mr Durrani. “On balance, we expect that residential values will recede by a further 5% to 7%, but some locations such as Dubai Marina and Downtown Dubai, will likely see stability persisting.”
Laid-back lifestyle
Simon Barry, head of new develop-ments for Harrods Estates, has found that the marina is the preferred location for buyers from the UK while it also proves most popular with other nationalities. “Currently the majority of buyers are either from GCC countries or the India sub-continent – with a roughly 50:50 split,” he says. “Living in the marina offers the unique mix of Big City and beachfront, which is Dubai’s signature look: sand, water and amazing architecture. It’s one of the few places in Dubai where you can enjoy walking with 7km of promenade along the basin and beachside with restaurants, cafés, retail and big hotels and apartment blocks. The atmosphere is more laid-back than Downtown Dubai with ex-pat professionals sipping coffee, enjoying brunch or smoking a shisha by the water, often in shorts and T-shirts.
“Dubai’s fiscal regime also makes it an increasingly attractive, tax-friendly place in which to live and do business. Though the UAE is seeking to diversify its economy away from oil, a recovery in oil prices from the lows of 2014 is already underway, with US reserves reducing and Saudi Arabia reportedly keen to see prices heading back towards $100 per barrel. We believe this will inevitably have an inflationary effect on property prices in Dubai – and now could be a very good time to buy.”
