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The National
20-05-2025
- Business
- The National
Dubai's residential areas enjoying the biggest surge in demand
Dubai's emerging mid-market communities are seeing an increase in demand for residential property as 1,000 residents per day move to the emirate, The National can reveal. Property Finder recorded 750,000 searches for sales and rentals per 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 balcony, a maid's room, pool, gym and central air-conditioning. While Al Furjan was searched for half as much, its growth was strongest among any area listed on Property Finder's database, with an increase of 23.4 per cent year on year. Popular towers included Murooj Al Furjan, Avenue Residences, North Village and Azizi Residences, with the accessibility of the metro and pet-friendly accommodation key 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 Q1 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 both off-plan and resale apartment sales, according to the company's Q1 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-ever 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 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'.
Khaleej Times
04-03-2025
- Business
- Khaleej Times
Dubai's Salik posts higher revenue in 2024 after new toll gates, more fines issued
Dubai's toll gate operator Salik posted Dh2.3 billion in revenues in 2024 compared to Dh2.1 billion in the previous year, an increase of 8.7 per cent, driven by higher number of fines issued and increased toll usage. The company's profits rose 6.7 per cent to reach Dh1.279 billion last year. Revenue from fines increased by 9.3 per cent to Dh236.9 million in 2024, with the fourth quarter up 14.5 per cent to Dh62.1 million. The number of net violations grew 5.4 per cent in Q4 2024, reaching 730,000. Net violations during the fourth quarter represented 0.4 per cent of net toll traffic. Revenue from fines contributed 10.3 per cent to total revenue in 2024. Toll usage fee revenues grew over 8 per cent to Dh1.99 billion in 2024 as against Dh1.84 billion in the previous year. Two new Salik gates, Business Bay gate and Al Safa South gate, were made operational on November 24, 2024, taking the total number of toll gates to 10 across the emirate. 'During the past year, Salik reached significant strategic milestones, having introduced two new toll gates within the core tolling business and established multiple partnerships. These strategic partnerships support our ambition to become a global leader in providing sustainable and smart mobility solutions. They also reflect our commitment to delivering innovative solutions that enhance road user experience, expand our ancillary revenue streams and supports financial returns,' said Mattar Al Tayer, chairman of Salik. Salik implemented variable road toll pricing in Dubai from January 31, 2025. During weekdays, the toll will be Dh6 during morning peak hours (6am to 10am) and evening peak hours (4pm to 8pm). For off-peak hours, between 10am and 4pm, and from 8pm to 1am, the toll will be Dh4. Higher growth in 2025 'Our 2024 results were bolstered by particularly robust performance in the fourth quarter, with revenue-generating trips increasing 8 per cent year-on-year, at the top end of our guided range ... We are optimistic about the positive trends in Dubai's economy, which align with and support our growth and vision,' said Ibrahim Sultan Al Haddad, CEO of Salik. As a result, Al Haddad said the firm has revised upward its forecast for 2025, projecting revenue growth of 28 to 29 per cent compared to FY24, alongside an EBITDA margin of 68 to 69 per cent. 'Our revised guidance includes contributions from the implementation of variable pricing and our two new gates, both of which have demonstrated the expected performance in their initial weeks of operation. I would like to reaffirm our confidence in expanding our ancillary revenue streams in 2025, following the successful collaboration with Emaar Malls to provide an innovative, barrier-free parking payment solution,' he said
