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Well, this is quite a common question from the investors’ side and nowadays end-users also want to know whether buying a waterfront property is worthwhile or not. So, in this blog, we will see an in-depth discussion about waterfront properties, their demands, supply, advantages as well as disadvantages.
As you know Dubai Real Estate has done well in the last year and waterfront properties have seen a higher transaction value in different areas of Dubai. On the other hand, for rental as well as sales, in both cases, waterfront properties gather huge appreciation. Dubai’s prime locations such as Palm Jumeirah, Jumeirah Lake Towers (JLT), and Dubai Marina have significantly seen growth for waterfront properties and projects sold here fast.
The most advantageous thing about waterfront properties is they can offer investors exceptional returns and end-users a coastal living experience. If you are looking for long-term investment waterfront properties are the best option and as compared to demand it’s supply is less hence, there are a hundred probabilities that you can enjoy the best returns.
Check out some key factors that make waterfront properties quite appealing investment options: –
High Level of Tourism – Dubai is a tourist spot and tourists around the globe frequently visit Dubai and prefer short-term rental homes or vacation homes close to waterfront areas.
Guaranteed Rental Income – Properties boast waterfront areas that are always in demand and the most desirable options for residents and tourists. So, you can see the continuous rental growth.
Limited Supply – This is the most significant factor and its impact is huge. Yes! such types of property supply are lesser as compared to the demand. Hence, for investment indeed this is the best option.
Tendency for long-term appreciation – Location is the prime USP of waterfront properties and it helps in long-term investment and gives you lucrative returns for sure.
WaterFront Communities And Their Property Transaction Value In Q3 2023
Learn from the past, this famous saying should be practised in real life. So here, let’s take a look at the past year’s waterfront property transactions and make our next move.
Palm Jumeirah
Palm Jumeirah is considered as the symbol of Dubai’s opulence and buying a home here shows your status. This man-made archipelago offers a collection of high-end homes in different property types and offers a luxury lifestyle, myriads of leisure options and breathtaking ocean vistas. Last year in Q3, 2023 Palm Jumeirah transacted AED 2.6 billion.
Dubai Harbour
Dubai Harbour is the waterfront wonder has transacted AED 3.04 billion property in Q3, 2023. This region is quite famous for its luxurious residences, stunning views, and proximity to key attractions. It offers end-users a perfect marine-centric living experience.
Dubai Marina
Dubai Marina has recorded the highest real estate transaction worth AED 24.96 billion in 2023. This waterfront community offers you the best side of living experience, a mesmerizing view of Dubai Marina, the promenade, and much more. With 7.15% Higher ROI the area has become an ideal investment zone in Dubai.
Business Bay
This mixed-use community is home to residential as well as commercial real estate and Business Bay has secured 4th position in property transactions worth AED 2.43 billion. The community’s location, availability of a wide range of property options and endless opportunities make it the prime residential hub.
Hence, from experts’ standpoint, these areas remain in demand for waterfront properties from tenants and owner/occupiers. These localities hold world-renowned scenic beaches, exclusive community living and endless conveniences within.
Are Waterfront Properties Resistant To Market Fluctuation?
This question always strikes investors’ minds and let’s understand it from an expert standpoint. Dubai’ is the epicentre of business and known for luxury living and the city is famous as a tourist destination which increases property demands.
Other than this, waterfront properties offer stability in the real estate market and you can expect higher rental yields as well as consistent demand. Even the supply of these properties is quite low which is the reason waterfront properties won’t be affected that much by market fluctuation.
Such properties are limited in supply and offer a most preferable choice for rental and that makes waterfront properties quite exclusive. On the other hand, Dubai’s Real Estate rental rate has seen robust growth in the last year and according to experts, it is believed that it will jump 20% in this current year. All in all, the prediction says that Dubai Real estate will see upward momentum in 2024.
Advantages Of Living In Waterfront Properties
Owning waterfront properties associated with certain advantages such as:
Location –Location always plays a crucial role and offers positive benefits. Waterfront properties boast tranquil locations and they offer the best advantages of living as well as boost the property value. Waterfront properties are prestigious and mostly attract short-term rentals. Such investment is wise and offers endless benefits.
Direct access to the beach – Waterfront properties offer easy access to the beach. Also, it gives you the best side of living experience. You can enjoy a completely tranquil ambience and offer an aesthetic lifestyle.
Loaded with myriads of world-class amenities – Waterfront property’s prime USPs are the serene water views still they are loaded with endless modern recreations such as infinity pools, access to water sports, gated communities, security and many upscale entertainment options.
Strong Investment Potential – Waterfront properties can generate good returns and they can be the best properties among other properties. As the demands for such properties are higher and supply is less and the property matches the current trends too, so from that standpoint such properties can generate higher ROI.
Disadvantages Of Living In Waterfront Properties
If you are looking for waterfront properties in Dubai, then here you will only face the saltwater effect and few maintenance charges. Waterfront properties are exposed to saltwater and humidity and other environmental factors increase the maintenance cost of the property.
Although such properties are developed with high-quality materials and follow modern construction still it would increase the maintenance only.
Conclusion
All In all, when it comes to waterfront properties vs other properties, undoubtedly waterfront properties are the best option, even for investment they will offer promising returns. Additionally, waterfront properties are quite in demand for short-term rental, even tourists who visit Dubai for vacation usually seek such types of properties.
Although the property is exposed to salt water still you will enjoy the serene view of the water and can enjoy a tranquil address for a lifetime. Moreover, it gives you direct access to water and other water sports. Despite this, waterfront properties are more expensive than other properties.
