Dubai's mid-market residential communities experience strong surge in demand

The National

20-05-2025

Dubai's emerging mid-market communities are experiencing an increase in demand for residential property as 1,000 residents a day move to the emirate. Property Finder recorded 750,000 searches for sales and rentals a month for Jumeirah Village Circle in April, a 3 per cent increase year-on-year, with the top five searched-for buildings including Binghatti Corner, Belgravia and Bloom Towers. Key search terms for this area included 'brand new', '12 cheques' and 'ready to move', with most-desired amenities such as a balcony, a maid's room, pool, gym and central air-conditioning. Al Furjan was searched for half as much, but its growth was strongest among any area listed on Property Finder's database, with an increase of 23.4 per cent yearly. Popular towers included Murooj Al Furjan, Avenue Residences, North Village and Azizi Residences, with the accessibility of the Metro and pet-friendly accommodation factors in users' search criteria. This surge in demand has led to increased rental and sales prices. In Al Furjan, apartment sale prices increased by 15.4 per cent year-on-year in the first quarter of 2025, according to Property Monitor, while townhouses and villas were up 30.3 per cent and 42.5 per cent, respectively. This reflects rising confidence in the community's long-term potential, Daniel Hadi, chief executive of Engel & Volkers Middle East, told The National. JVC retained its lead in off-plan and resale apartment sales, according to the company's first-quarter 2025 market report, supported by attractive pricing, strong rental yields and proximity to major road networks. 'Similar communities such as JVC, Arjan, Silicon Oasis and Town Square also outperformed the Dubai average price growth of around 16 per cent over the last 12 months, with apartment prices rising between 21 per cent and 25 per cent,' Mr Hadi added. 'These areas are increasingly popular with first-time buyers, investors and young families seeking well-connected, amenity-rich neighbourhoods at more accessible price points.' This all comes as residential property sales across Dubai increased by 22.4 per cent year-on-year, with a 29 per cent increase in the total value sold, according to Engel & Volkers. Dubai Land Department data also revealed Dh62.1 billion ($16.9 billion) was made in total sales in April − the highest monthly total for the emirate. This is a 94 per cent year-on-year surge and a 54 per cent rise in transaction volume, according to Property Finder. 'Dubai's real estate market continues to scale new heights, propelled by bold city planning, regulatory innovation and investor trust,' said Cherif Sleiman, chief revenue officer at Property Finder. 'The sustained growth across both primary and secondary segments is resounding proof of its resilience and long-term appeal.' 'It's no surprise residents are making the switch to property ownership,' Kundan Choudhary, founder of Prime Estates, told The National. 'Especially with Al Furjan offering great value for villas and JVC/JVT standing out for affordable apartment options. With prices starting from under Dh1 million for a decent home, we have seen over a 30 per cent increase in demand for these areas compared to last year.' Mr Hadi said they expect these communities to remain in demand as new infrastructure and amenities continue to be added. 'However, price growth may moderate as more off-plan supply begins to hand over in the coming quarters.' One such project includes Tasmeer Indigo Properties' SquareX Residence, with 170 residential units being constructed in the heart of JVC. About 90 per cent of these spaces sold within three months of receiving the building permit, said company chairman Aman Kassim. Demand has been especially strong from young professionals – millennials and Gen Z end users, he added. Life coach Anne Jackson bought her JVC villa off-plan in 2006 with little idea of how the community would grow. 'Back then, the plan announced by master developer Nakheel in 2004 sounded idyllic: a central park with a radial design, office spaces, villa clusters, apartment complexes, schools, supermarkets and even a European-style tram,' she told The National. 'But the global credit crisis in 2008 dramatically slowed progress. Developers withdrew, projects stalled and by the time I moved in – 18 months behind schedule – in 2010, the vision had not yet materialised.' Over the past 15 years, she's watched the neighbourhood flourish, however. 'I had lived in Dubai since January 2000 and had already seen how neighbourhoods could be transformed from barren desert to thriving communities. I knew JVC would grow. There was something uniquely charming about watching that evolution unfold around me.' She said the transformation has been 'remarkable' and she firmly believes JVC is the 'best place to live'. 'When we moved in, my children were four and seven. Now they're 22 and 19 and JVC is still 'home' when they return from university. They've had the stability of growing up in the same house, attending the same school, and forming lifelong friendships. That's a gift not every city can offer in such a fast-changing world.' Long-term Dubai resident Sara Loch, who recently bought a three-bedroom townhouse in Al Furjan, said one of their main deciding factors on location was the potential for property appreciation. 'It doesn't beat some of the older areas like The Lakes, but we felt it was a good investment for our budget,' she said. 'The size of land you get in this area is much better value that most others areas in Dubai.' Tatiana Tonu, chief executive of developer Object 1, said Al Furjan is establishing itself as a trusted investment hub, driven by high demand and long-term growth potential. 'Its strategic location between two major highways, metro access and proximity to commercial hubs have boosted its appeal, with rental transactions rising 8 per cent and one-bedroom rental values surging 39 per cent, delivering yields of up to 9 per cent,' she said. Meanwhile, JVC remains Dubai's most actively traded off-plan residential cluster with strong value and competitive rents, she added. Rents in other affordable villa communities such as Dubailand, Meydan and International City are also soaring between 39 per cent and 46 per cent year on year. 'Mixed-use projects, which integrate residential, retail and recreational elements, are witnessing heightened demand as buyers increasingly value walkable, lifestyle-centric environments,' said Ms Tonu. While these areas are popular in terms of volume, the appeal of wealthier locales such as Palm Jumeirah, Jumeirah and DIFC also shows no signs of slowing down. 'Off-plans in Dubai have never been more varied or exciting, with something for every budget,' said luxury property adviser Laaleen Sukhera of Liv Squared. She said now is the time to invest. 'Expect rapid transformation citywide for Dubai 2040 including master communities in the vicinity of Al Maktoum Airport … We're also seeing a boost in global interest in light of Trump's tariff effect, with more interest from US investors.' For anyone seeking strong returns, Ms Tonu advised investors look at properties in Downtown Dubai, Dubai Marina and JVC, which she said 'continue to be standout options in a thriving market'.