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September 25, 2024 | Viewed: 329

How much does seaside property cost in Dubai?

Imagine you’re on such a gorgeous beach. As they love to say in Dubai, by the big water. And here, in the future, there will be a large port. Imagine waking up in the morning, stepping out of your apartment, walking just 20 meters, and finding yourself on such a luxurious private beach. You swim or go for a run along the sea, and in the evening, after work, you go for a sunset walk with your spouse. You enjoy the sunset and have a delicious dinner. Who wouldn’t dream of living like this? I think everyone would.

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That’s why today we will explore all the popular waterfront districts and locations. We’ll take a look at these areas and compare them, because the most popular places aren’t always the best for living or the most attractive for investment. We’ll also discuss the areas where people truly want to live, including expats.

Bluewaters Island

Today, we will be moving from west to east and exploring Dubai’s coastal areas. The first area I’d like to talk about is, of course, Bluewaters Island. Here it is, the first stop, and we can see the famous Ferris wheel.

What stands out about Bluewaters Island is that it’s one of the few areas that has shown a tremendous price increase over the past five years. The cost of real estate on this island has risen from 2,100 dirhams per square foot to an average of 5,000 dirhams per square foot, showing more than a twofold growth.

Bluewaters Island is new, and in fact, it’s truly new, as the island was only completed in 2018, just eight years ago. By the way, the island was built by the company Mirasa. It’s no coincidence that we’re starting with this area — this is a man-made, artificial island.

Today, we’ll be looking at several artificial islands. I’ve mentioned several times on our channel that although Dubai is by the water and it’s a coastal city, there isn’t enough waterfront real estate on the first shoreline. That’s why, back in the early 2000s, the authorities of the United Arab Emirates, specifically Dubai’s authorities, came up with the idea to build artificial islands to extend the first shoreline. This was done to generate more revenue, build more waterfront properties, more hotels, and attract even more tourists.

This project is still actively developing, which is why some artificial islands, like the well-known Palm Jumeirah and Bluewaters, are thriving. Their prices are increasing, they are highly sought after, and, for example, in winter, demand for Bluewaters even exceeded supply. It was very difficult to find a decent apartment for a yearly lease — everything was very expensive. In fact, everything here is truly expensive.

Real Estate Prices on Bluewaters

When it comes to prices on Bluewaters Island, if we’re looking at one-bedroom apartments, you can expect a price of around $1.5 million. Of course, you can search and find something for $1.4 million. I’ve seen some apartments sold for $1.4 million — which is around 5 million dirhams. Such deals have indeed taken place.

There are no limitations here; you can find one-bedroom, two-bedroom, and three-bedroom apartments, as well as townhouses with separate entrances. These options are simply stunning and delightful. There are apartments with renovations and without, so there are plenty of offers available.

Rental Prices on Bluewaters

As for rent, one-bedroom apartments currently go for an annual rental price of between $90,000 and $120,000 per year. This depends on the specific apartment and the unit itself.

If you’re feeling discouraged, thinking you’ll never be able to afford waterfront property in Dubai, keep in mind that this is one of the most expensive areas, Bluewaters. Next, we’ll talk about more affordable areas.

We’ve all understood that Bluewaters is a fantastic and expensive area, and its value has increased. Let’s talk about why prices have risen so much and what factors contributed to this growth.

Why Property Prices Are Rising on Bluewaters

Why has this island become so popular? Why are people willing to pay such high prices for rent and purchase here? The thing is, if there weren’t people willing to buy property here for such prices, those prices wouldn’t exist.

Firstly, it’s about the location. Bluewaters is right next to Dubai Marina, just across the canal. You can walk there, as there is a pedestrian bridge and promenade. However, despite its proximity, it feels like they’ve removed all the downsides and inconveniences of Dubai Marina. Everyone knows that Marina, especially Dubai Marina, has traffic jams. On Bluewaters, there are no traffic jams. They have a separate highway and a dedicated bridge that leads directly to the main road.

Parking on the island itself is very expensive, and generally, the people driving on Bluewaters Island are either residents, guests staying at the hotel — there’s only one hotel — or people coming to dine at a restaurant. This means the traffic here is quite low.

Secondly, Bluewaters Island was built by the state-owned company Meraas. This company is known for constructing high-quality projects. Additionally, the development here isn’t high-rise. Many people prefer low-rise developments because it allows for a more peaceful and relaxed atmosphere. This has been a huge advantage for this project.

The third point is that the island was very well designed. On one side, there’s a tourist promenade. You can walk from JBR to Bluewaters and stroll along the tourist promenade, which is located next to the Ferris wheel, restaurants, and plenty of tourist shops. It’s all very impressive.

However, if you think about where the local residents go for walks, they can head to the other side of the island, where there’s absolutely nothing: no shops, no cafes, no restaurants. There’s only a beautiful sea view and park areas with benches where people jog, walk their dogs, and enjoy the peaceful surroundings. This area is not closed off — anyone can enter, but it has a small, neat entrance, so mostly residents walk there. Tourists usually have no reason to be there since there are no establishments or retail outlets.

On Bluewaters Island, all the best amenities are gathered. You live just 25 minutes from the city center, not far from Dubai Marina, but at the same time, you are on a quiet and peaceful island where you can enjoy low levels of noise pollution and beautiful sea views. If you go to the other side of the island, you’ll find a huge number of great restaurants, entertainment, and clubs. You can always walk to the street with clubs and restaurants, so you will never be bored.

At any time, avoiding traffic jams, you can drive on your personal bridge to the highway and reach the city in 25 minutes. We’ve found that everything on Bluewaters Island is great — only positives, no negatives, especially if you have 1.5 million dollars to buy a one-bedroom apartment. Yes, everything is really fantastic, but the price is quite high.

JBR District in Dubai Marina

The next district we’ll talk about is JBR, located in Dubai Marina. Let’s clarify a few things. This island with the Ferris wheel — that’s Bluewaters. We are currently in JBR, and behind the JBR area is the Dubai Marina district. If you look to the right of JBR, you can see the high-rise buildings, and that’s already Dubai Harbour. We’ll discuss them in the next topic since they are nearby.

And behind Dubai Harbour, you can see the buildings that are already on the Palm, as well as the famous Atlantis Hotel. That’s why people, especially those who don’t live in Dubai, often perceive the Dubai Island, JBR, Dubai Marina, and Dubai Harbour areas as one large district. However, that’s not entirely the case: these areas are neighboring and are close to each other. If you walk from the terrace through all of JBR to Dubai Harbour, it will only take you about an hour. The distance is one and a half kilometers. So, it will be a long, one-hour walk, but still, in just one hour, you can walk from Bluewaters through all of JBR to Dubai Harbour.

Pros of the JBR and Dubai Marina Areas

In this article, we will focus on two neighboring areas: Dubai Marina and JBR. Let’s start with the pros and cons of these locations.

One of the main advantages is the presence of an excellent public beach. From Dubai Marina, you can reach this wonderful beach in 10-15 minutes to relax with a towel, sunbathe, or swim. This is a huge plus, especially considering that despite the large amount of waterfront property in Dubai, there are actually very few easily accessible places where you can easily walk to the beach. This is a big rarity here.

As for Dubai Marina, another advantage is the availability of public transportation. Although the metro is being actively expanded throughout Dubai, it is not available everywhere yet. However, Dubai Marina already has a functioning metro and tram, making it easy and quick to move around the area or get to the city center.

Another benefit of this area is its affordability. Dubai Marina is one of the most accessible seaside areas. You can find a good one-bedroom apartment starting from 1,600,000 dirhams on the secondary market. This will be a decent apartment, and the rental cost for such a unit is around 120,000 dirhams per year.

The Dubai Marina and JBR areas have many advantages. They are fully developed and ready for living, offering all the necessary infrastructure. Almost all the free plots have already been built up, and there is a full-fledged shopping mall where you can walk to shop or buy groceries. Additionally, this area has several kindergartens and a large number of cafes and restaurants. In short, the entire infrastructure is fully operational.

Cons of the JBR and Dubai Marina Areas

As for the downsides of Dubai Marina, there are a few points that might be considered disadvantages for some residents. Firstly, the area is considered old, as construction began in the 2000s, and although there are still new buildings being developed, older ones remain next to the new developments. For some, this might be a downside, while others may not pay attention to it at all.

Secondly, the area is fully built up and ready for living, which leads to traffic congestion, especially during the tourist season. At this time, the area is crowded, and the beaches become packed with people. For some, this can be a drawback, as they may dislike being stuck in traffic. However, others might prefer having an apartment in such a location where they can quickly reach the sea, walk along the promenade, and enjoy being close to the beach. For them, this area is unrivaled.

Real Estate Prices

Today, we won’t delve too deeply into the real estate market in Dubai Marina because things are relatively straightforward. Most buildings here were constructed by the same developer. There is a difference in prices, but on average, this can amount to just 50%, depending on the type of apartment and the floor. In Dubai Marina, prices can vary much more. For example, the cost of one-bedroom apartments can range from as low as 1 million dirhams for apartments that are unfortunately in poor condition. Decent, well-maintained apartments on the secondary market start from 1,600,000 dirhams.

Additionally, you can consider new developments, such as the Kempinski project, where the infrastructure will be of the highest quality. For such developers, prices start from 3,200,000 dirhams for one-bedroom apartments.

If you’re interested in this topic, you can download a catalog from the website. We’ve compiled a list of the top 15 best projects in Dubai Marina, including both primary and secondary market options in various price ranges. You can download the catalog, review the information yourself, and if you have any questions, don’t hesitate to contact our specialists. They will be happy to answer any questions you may have.

Dubai Harbour and Emaar Beachfront

The next location we want to discuss is Dubai Harbour and Emaar Beachfront. It’s interesting because this is an entirely new area where everything will be brand new: all the buildings are fresh and beautiful, and it also boasts a magnificent marina. The scenery is stunning, and this location certainly has its pros and cons. Let’s quickly go over them.

Starting with the positives: First, this is a completely new district, and all the buildings will be of high quality. It’s also worth mentioning that there’s a distinction between Dubai Harbour and Emaar Beachfront. Emaar Beachfront is being fully developed by a master developer, Emaar, which is a government-backed developer that built Dubai Marina and Downtown Dubai. They are also currently working on another interesting community, which we’ll discuss later. As for Dubai Harbour, a variety of different developers are involved, but all the projects are also presented at a high level. Let’s focus more on Emaar Beachfront, as there are currently many offers available on the primary, secondary, and rental markets.

Pros and Cons: Dubai Harbour vs. Emaar Beachfront

The first advantage worth mentioning is the presence of a private beach. You always have access to the beach, and you can walk to it in just 2-5 minutes. This is undoubtedly a huge plus for those who want to go for a morning run or simply swim in the sea.

The second advantage is that the area is completely new and modern, with well-developed infrastructure. Everything here is beautiful and new. There are also plans for the construction of a road that will significantly improve transportation accessibility to the area. As a result, you will be able to reach the city center in 20-25 minutes without traffic.

However, this location also has certain drawbacks. The first one is more of a matter of taste. When we talk about such a premium community, some may expect low-rise buildings for a more tranquil atmosphere. But here, high-rise buildings will be constructed by various developers, and the development is quite dense, which might not appeal to everyone.

If you choose an apartment in Emaar Beachfront, be prepared for a lack of peace and quiet. Dubai Harbour will be under construction for the next five years, so during that time, you will likely experience construction noise, dust, and the ongoing development around you.

Property Prices

As for prices today, a one-bedroom apartment at Emaar Beachfront can be purchased starting from 2,300,000 AED. It’s important to note that Emaar never builds studios; their minimum apartments are always one-bedroom and quite spacious. The area of one-bedroom apartments is about 70 square meters. If you want an apartment with a beautiful sea view and a good location on a higher floor, be prepared to pay from 2,900,000 AED for similarly spacious units. In my opinion, every dirham is worth it.

You can also consider purchasing an apartment on the secondary market and moving in. Alternatively, explore projects currently being built in Dubai Harbour by other developers. Remember, you can always contact us for more comprehensive and detailed information.

If you’re considering renting an apartment at Emaar Beachfront, the average price ranges from 130,000 to 200,000 AED per year for one-bedroom apartments. This cost depends on the floor and specific features of the apartment.

Palm Jumeirah

The next location we’ve arrived at is Palm Jumeirah. When it comes to Palm Jumeirah, it’s not just another waterfront district, nor is it simply a residential area by the sea. This is one of the symbols of Dubai, alongside Burj Khalifa. Choosing to live on Palm Jumeirah means residing on one of the iconic landmarks, which is undoubtedly very cool. Like any other area, it has its own pros and cons. Let’s quickly go through them.

Pros of Palm Jumeirah

The first thing to note is that living on Palm Jumeirah is undoubtedly prestigious. It truly is a symbol of Dubai. Aerial views of the Palm from a helicopter are some of the most memorable images of the city.

Secondly, the infrastructure is impressive. The Palm has absolutely everything. There are shopping malls, cafes, bars, and restaurants—every amenity you might need. Additionally, the stunning sunset views and beautiful landscapes, both of the Palm itself and the sea, are remarkable.

Every villa, hotel, and apartment complex has access to the beach. If it’s a villa, it includes access to a private beach. Honestly, I’ve lived in Dubai for quite a while now, and I’ve noticed that when people first arrive, they often explore various areas of the city. However, over time, I frequently hear that they want to live specifically on Palm Jumeirah. You gradually tire of the hustle and bustle of the city.

Cons of Palm Jumeirah

The first con to mention is that there is only one exit from the Palm. This creates some traffic problems. Therefore, during peak hours, exiting the Palm can be challenging; you may have to wait in traffic for a bit. However, if you choose to live in the center of the Palm, often referred to as the trunk, exiting is much easier. If you live on the fronds, especially at the ends, it can take 20-25 minutes to exit the Palm, which requires some time.

Another interesting point regarding the cons is the price. However, this isn’t entirely a negative, as the prices are reasonable. New apartments start at around 3.6 million dirhams for a one-bedroom unit. Of course, there is a secondary market, but often the apartments on the secondary market may be less appealing compared to the primary market, which offers new and modern units.

Renting on Palm Jumeirah

When it comes to rentals, the price for one-bedroom apartments ranges from 140,000 to 180,000 dirhams per year. However, as I mentioned, this typically applies to older buildings. Palm Jumeirah was developed nearly 20 years ago, with occupancy starting in 2008. On the other hand, if you’re into flipping properties—such as buying apartments, renovating them, and then reselling—Palm Jumeirah is a fantastic location for that. It has become very popular for flipping.

In terms of prices, renting a villa with new renovations can cost three times more than renting a villa with older renovations. This can significantly boost your return on investment (ROI) for rentals. You can also resell the villa for a profit. The situation with apartments is similar; they require less investment compared to villas.

Community on Palm Jumeirah

So, who chooses to live on the Palm? These are people who want to combine the quiet island lifestyle with life in a major metropolis. Here, for example, you can live in an apartment and then head to the stunning, uncrowded, and peaceful beach. You’ll be able to enjoy beautiful views, clean water, and go for morning runs.

Moreover, there’s a park here. In fact, it’s one of the few parks where people actually engage in sports; many jog and practice yoga here. Almost all of the Palm is pet-friendly, meaning you can bring dogs and pets to all the parks. Most cafes also allow pets, so if you have furry friends, this location is worth considering.

In general, you can find everything you need for life on Palm Jumeirah: parties, clubs, bars, restaurants, and shopping centers for leisurely strolls. It’s always just a 25-30 minute drive to the heart of the bustling metropolis—downtown Dubai. This is the splendid Palm Jumeirah.

If you’re already in love with Palm Jumeirah but think that 3,600,000 dirhams is a bit steep for a one-bedroom apartment, I’d like to remind you that we have another location that closely resembles Palm Jumeirah, with an entry threshold that is half the price.

Maritime City and Rashid Yachts and Marina by Emaar

The next two locations we will discuss are Maritime City and Rashid Yachts and Marina by Emaar. I’ve combined them into one section because they are located very close to each other. The tall tower you see is already part of Maritime City, while we are currently in the Rashid Yachts area. So, both of these locations are adjacent.

Unlike the previous locations we’ve visited, there isn’t much here at the moment. However, you can still notice the beautiful marina that already exists, along with adequate infrastructure: palm trees have been planted, roads are laid out, and overall, it looks very appealing.

What’s planned for the future? There are plans to create a large port and a major marina. Additionally, cruise liners will dock here, which will bring a flow of tourists to the area.

Property Prices

As for the current prices in this area, as you can see, there isn’t much available except for one tower from Emaar located in Maritime City. This is the benchmark to consider. In the secondary market, studios can be found starting at 1.1 million dirhams. These studios are already being rented out for 75,000 dirhams a year. For one-bedroom apartments, the average price is around 1.8 million dirhams, with similar apartments renting for up to 115,000 dirhams annually.

But don’t rush to calculate your profits in this location just yet. As you can see, there’s nothing here. Imagine, people are paying 115,000 dirhams a year to rent a one-bedroom apartment in an area where there are virtually no amenities. There’s one small shop, a little kiosk, and there’s one café over there. Everything looks nice, of course, but there really isn’t much here at the moment.

According to Dubai’s development plan for 2040, this area is set to become another popular tourist and residential location. The development plan also includes a large tourist center. As I mentioned earlier, cruise liners will be docking here, and a large marina will be constructed. Additionally, a substantial community is being developed.

Emaar, the state developer that built areas like Downtown and Dubai Marina, does not construct standalone buildings; they only develop complete communities. Here, they are also creating a fully integrated residential complex that will include schools, nurseries, parks, and a huge 500-meter swimming pool. This will be a fully residential area with all the necessary infrastructure.

Currently, you can consider a one-bedroom apartment starting at 1.6 million dirhams for a spacious unit that is expected to be ready around 2027-2028.

Advantages of Maritime City

One of the main advantages of this location is undoubtedly its waterfront setting. However, all the areas we’re discussing today are near the sea. Here, there will also be a beautiful promenade where you can step out of your home and take a stroll.

Additionally, this area is very interesting. Even now, you can drive to the center of Dubai in just 20-25 minutes. We can see the Burj Khalifa, and in the future, a new interchange is planned, which will significantly simplify access to the center. This will allow you to travel without traffic jams and reach your destination in the same 20-25 minutes.

Certainly, all these advantages make this area very attractive from an investment perspective. However, it does have its downsides. The most obvious one is that there is no beach and likely never will be. This is because there’s a port and marina in the area, and another port on the opposite side in Maritime City. Thus, you shouldn’t expect a beach here. Nonetheless, the nearest beach can always be reached by car in 5-7 minutes.

Dubai Islands

We’ve finally arrived at our last location for today, and as promised, this is the most exciting and investment-attractive area—Dubai Islands.

In the past year, in addition to the master developer Nakheel, which is building these islands, ten other major developers have joined the project. Currently, there are 18 new projects under construction. Can you imagine those numbers? This is one of the few places where some of the most interesting apartments are still available for sale at launch. The most attractive units are often sold out even before the official sales begin, with investors purchasing multiple apartments or entire floors.

Let’s briefly discuss why this location is so appealing. First of all, just look at the beauty of the surrounding landscape! Wouldn’t you want to wake up every morning to such a wonderful view? You can easily step out of your home, cross the road, and find yourself on a stunning beach. Unlike Palm Jumeirah, where there are small inlets, here you have large, beautiful beaches.

It’s worth noting that there is no waterfront location in Dubai where property prices haven’t risen. It’s essential to remember that properties on the first coastline always appreciate in value.

Another interesting aspect is that Dubai Islands comprise four large islands covering a total area of 6 kilometers. One of these islands will be the Green Island, which will feature golf courses. Golf courses by the water are unique, and in my opinion, these will be the only golf courses in Dubai located right by the sea. Additionally, this island will host villas and sports facilities, including tennis courts and stables. Ultimately, all these islands will be fully developed with villas, and this particular island will be the only one with hotels and apartments.

Investments in Real Estate on Dubai Islands

Why should property prices rise here? Just look over there at the huge shopping center. Why are shopping centers so important in the United Arab Emirates? The thing is, it’s hot here for four months of the year, and people need a place to shop and walk around. That’s why shopping centers solve this issue.

This shopping center, I’m not sure if it’s bigger than Dubai Mall, but it’s definitely larger than Mall of the Emirates or about the same size. So, those who have been to Dubai can imagine the scale of this complex. It will have absolutely everything: cinemas, cafes, restaurants, clinics. All the infrastructure that will be on the island will essentially fit in one place.

The location here is also interesting. Even now, we can get from Dubai Islands to the city center in 25 minutes without traffic. Yes, there is traffic in this part of the city, especially during rush hours—morning and evening. But they are already building two new exits from this island and there will be two new bridges that will allow for a traffic-free journey to the center of Dubai in a pleasant 20-25 minutes.

Imagine this: you’re lying on the beach, you get into your car, and in 20 minutes, you’re in Dubai’s business center. Even on Palm Jumeirah, this is not possible. There’s a large concentration of people and cars there, traffic jams, and the journey takes about 40 minutes. Here, accessibility will be much closer.

By the way, since we mentioned Palm Jumeirah, the most relevant comparison for Dubai Islands would indeed be Palm Jumeirah. This is also a man-made island, primarily focused on beach tourism. There will also be a combination of residential and hotel complexes, meaning there will be space for both tourists and permanent residents.

New Developments on Dubai Islands

Currently, if we look at new developments on Palm Jumeirah, the price for a one-bedroom apartment is around 3.6 million dirhams. On the second shoreline, a number of excellent apartments are being built. As I mentioned, there are a total of 18 projects underway here, and one of the latest is a fantastic project by the developer Imtiaz. We really like Imtiaz as a developer; they have good quality and build well. The Beach Walk 3 project recently started, with prices for one-bedroom apartments starting from 1.9 million dirhams for spacious units.

It’s worth noting that there won’t be any studios here; the project is approved by Nakheel, the master developer. If there are any small apartments, Nakheel does not approve those projects, as they want to make the island more luxurious. Therefore, the minimum units are one-bedroom apartments, with sizes ranging from 68 to 72 square meters, making them quite spacious.

Another unique aspect is that the island is being constructed very quickly. Nakheel has decided to expedite the development and sells plots to developers, giving them only four years to complete the project. Thus, most of the projects currently under construction are expected to be ready by 2026-2027. Essentially, a large part of the island will also be ready by that time, and by 2026-2027, it will be possible to live here comfortably and peacefully.

So, if you have any questions about this island or any of the previous locations we visited, feel free to reach out to our specialists directly. Ask them any questions you have, and they will be happy to assist you.