BackDubai Marina is by far the most popular residential community in Dubai, taking top place in terms of lead generation with a market share of 11.8%. Yet despite this high demand, the overall number of transactions fell by 7.57%. So if the community is so popular, why are the number of rental transactions decreasing? The major contributing factor to this trend is the rising living costs, with average rents in Dubai Marina rising by an incredible 13.33% in 2022 alone, resulting in new tenants being priced out of the market.
That withstanding, we are seeing existing tenants choosing to remain in the community, resulting in contacts renewals increasing by 7.43%. Another trend we have seen is a change in demographic across the community. Dubai Marina has seen a rise in families who are opting for larger apartments due to rising villa prices. There has also been an increase in HNWIs who are responsible for a rise in super prime transactions with the community becoming a more viable option compared to other areas of Dubai that have typically been seen as more high end.
Dubai Marina has long been popular amongst investors, and 2022 was no exception. Forward-thinking buyers should take note of and appreciate the stability the community offers, with sustained increase in net yields, as well as its status as a well-established neighbourhood, allowing for a resilience to external market factors which do not impact sales or rental values in the same way as they do for newer, less established residential areas of Dubai.
In this latest market report, we take a deeper look at these current market trends within one of Dubai’s most beloved communities.