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Real estate in Dubai is changing dramatically as more and more Property Buyers in Dubai are gravitating toward the rapidly developing residential areas of Majan and Furjan. By starting fresh rounds of off-plan developments, developers are taking advantage of the demand and trying to appeal to a broad spectrum of purchasers. Furthermore, neighborhoods such as Jumeirah Village South are becoming increasingly well-known as the preferred choice for mid- to upper-mid-range residential options at reasonably affordable prices.

 Unplanned Initiatives Fueling Expansion

In response to the increasing demand in Dubai’s real estate market, developers are aggressively starting off-plan developments. Developers are paying more attention to neighborhoods like Majan and Furjan, adding new buildings and more residential space. A Cushman & Wakefield Core research states that 1,500 units, or 5% of the entire supply in Arjan, are anticipated to be offered this year. The increase in supply indicates how confident developers are in these developing areas.

The gross leasable area of Dubai’s real estate market increased by 92,000 square meters in 2024, bringing the overall stock size to 9.2 million square meters.

Change In Residential Options From Mid- To Upper-Mid

Jumeirah Village South has been a popular alternative with reasonably priced properties ranging from mid- to upper-midrange. This change has put Jumeirah Village Circle’s hegemony under pressure and brought in fresh competitors like Arjan and Majan, predicted to grow in popularity among middle-class end-user property purchasers.

Al Furjan has become a well-known residential center, providing mid-to upper-mid-range houses and increasing the options accessible to purchasers.

Arjan and Majan’s Appeal To Investors And Homebuyers

Developers highlight the attractiveness of areas like Arjan and Majan to investors and homeowners, expressing optimism about the prospects of these areas. Nshama’s ‘Town Square’ project, which attracted tenants and end users in an unproven site, set a precedent. These developing neighborhoods should attract a sizable rental house market, attracting the attention of real estate investors.

The 2024 office space sales in Dubai demonstrated consistent investor confidence, with a value of AED 4.78 billion (AED 1.3 billion).

Observe Mid-Range Options

Developers are deliberately concentrating on offering more alternatives in the Dh1 million to Dh2 million range because these locations are still in the early phases of development. This strategy appeals to a broad spectrum of possible purchasers and aligns with the market demand for mid-range residences.

 In 2023, Dubai’s average cost of office space climbed to AED 1,120 per square foot, suggesting a favorable market state.

 Down Payment And Golden Visa Incentives

Development companies and real estate purchasers are making judgments based on recent regulatory changes, such as the updated Golden Visa criteria. A significant inducement for property purchasers is removing the 50% down payment requirement on an off-plan purchase of Dh2 million or more, which increases accessibility to real estate investing.

●  It is believed that Dubai deliberately chose to draw in more end users by waiving the Dh1 million down payment requirements for the Golden Visa on a minimum Dh2 million real estate investment.

●  More end users should enter the real estate market because they do not have to pay 50% upfront on a minimum Dh2 million investment.

Developer Proposals And Project Initiations

By launching new projects, developers are actively helping these burgeoning hotspots to expand. Initiating its Dh3 billion project in Arjan, Aqua Properties’ ‘The Central Downtown’ will include 1,168 apartments and a substantial retail space. Concurrently, Samana Developers has entered Majan with its most significant project, a Dh1.4 billion twin-town development.

 These developing residential centers are drawing in a wide variety of investors and purchasers thanks to the pipeline of upcoming off-plan developments.

Wrapping Up!

Real estate in Dubai is going through a transitional period, with new residential hotspots like Majan and Furjan drawing in developers and Property Buyers in Dubai. These developing hubs are strategically positioned as essential characters in Dubai’s changing real estate story by balancing accessibility, affordability, and regulatory advantages.