The world of real estate investment is dynamic – new lucrative markets emerge frequently while established ones continue to grow. As an investor, it is critical to spot these emerging trends and make timely investments for optimal returns. One such lucrative prospect is Arjan, an up-and-coming community in Dubai, UAE.
In this blog, we explore why investing in Arjan makes for a smart choice today:
Strategic Location
Arjan enjoys a strategic location in the heart of New Dubai’s emerging sub-city, Dubailand. Sheikh Mohammed Bin Zayed Road and Umm Suqeim Road – two critical transit corridors in Dubai – flank the community. The Dubai Miracle Garden, a top tourist attraction, also lies in proximity.
As infrastructure connects Dubailand to established hubs, accessibility will improve tremendously. The recent advancement will further enhance connectivity. Such strategic access opens up this community to the larger Dubai real estate market. According to Real Estate Expert Manuj Garg, “Arjan is centrally located in Dubai Land, making it easy to access major areas in the city and public facilities.”
Diverse Property Option
Arjan Community mainly comprises low to mid-rise apartment buildings, giving it a quiet, peaceful feel. With less noise, traffic, and population density, it provides an affordable option for families to buy property in Dubai close to key areas with higher rents.
The district has several residential sub-communities like Lincoln Park, Green Diamond, Vincitore Palacio , Siraj Tower, and Platinum One – each offering various new apartments for rent.
Affordable Entry Point
From a price point perspective, Arjan offers an attractive entry point into Dubailand real estate as compared to other established areas. Its current affordable capital and rental values allow investors to get into this promising market at a relatively reasonable cost.
As connectivity enhances in the future, prices are bound to appreciate in the mid-long term. Investors can thus capitalize on this growth cycle – entering at the right time to make substantial gains later. Such favorable price arbitrage makes investing in Arjan a wise decision.
Plenty Luxury Amenities
Arjan offers plenty of luxury amenities for residents. These include high-end gyms, spas, salons, swimming pools, sports facilities, parks, and the famous Dubai Miracle Garden and Butterfly Garden. The area also provides easy access to beaches, malls, restaurants, and entertainment venues in nearby communities. With abundant facilities for leisure and recreation, Arjan caters well to those seeking a refined lifestyle.
Returns Potential
Data analysis reveals promising rental yields in the range of 5-7% across residential asset classes in Arjan. Such robust returns beat rental income metrics in other areas. Arjan’s affordability and the supply of smaller ticket-size units make this possible.
For investors keen on early entry with promising rental returns, Arjan offers a stable income avenue. Strong capital appreciation in Arjan also further sweetens the deal.
Developer Interest
Ongoing projects by leading Dubai developers like Dubai Properties , Emaar , and HMB Homes have sparked interest in Arjan real estate. New project launches consist of residential communities, mid-rise apartments, commercial spaces, and retail outlets.
This construction activity reveals strong developer interest – given Arjan’s strategic location and connectivity. As future phases launch, investors can expect healthy returns from both capital appreciation and interim rental yields. During the recent Boulevard development, Managing Director of HMB Homes Real Estate Development.
Said, “We believe that this development will be a great opportunity for those looking for a new home or a smart real estate investment. We’re thrilled to offer a wide range of options for residents and to be a part of shaping the city’s future.“
Overall, Arjan demonstrates strong fundamentals for investment – affordable entry point, high rental returns potential coupled with upcoming projects that assure steady capital value growth.
Let us now assess some key real estate metrics across residential asset classes to quantify Arjan’s investment viability:
Arjan Rental Income Analysis
Arjan offers residential rental accommodation across budget segments – studios and 1 to 3-bedroom apartments. As per the latest data, mid-range monthly rents prevail:
| Apartment Type | Floor Spaces | Average Rental Price in AED |
|---|---|---|
| Studio | 500 sq. ft | 30,000 |
| 1-Bed | 750 sq. ft. to 1,157 sq. ft. | 46,000 |
| 2-Bed | 1250 sq. ft. to 1,800 sq. ft.. | 60,000 |
| 3-Bed | 1,900 sq. ft. to 3,224 sq. ft | 82,000 |
Such rental rates translate into gross yields of 6-7%. This return potential positions Arjan as a stable rental market capable of delivering robust yields for investors. Compared to other nearby communities, Arjan clearly shines on the rental income front.
Arjan Capital Growth Potential
Alongside assuring yearly returns, Arjan also holds strong capital appreciation potential owing to its current affordable price point coupled with the future development slated.
Average Selling Price Trends
| Apartment Type | Average Sale Price In AED |
|---|---|
| Studio | 433,000 |
| 1-Bed | 694,000 |
| 2-Bed | 929,000 |
| 3-Bed | 1,228,000 |
As connectivity improves in the medium term post route 2020 metro commencement, selling prices are bound to appreciate further – creating opportunities for healthy capital gains. Investors entering at current price levels can expect handsome returns from this impending price growth cycle.
Arjan’s Return on Investment
The high rental yield and mid-long solid-term capital growth prospects make a strong case for investing in Arjan – an emerging Dubai Real Estate Market located strategically with promising prospects.
Current rental return rates and ROI metrics affirm this investment viability:
- Studios: 6.0%
- 1 Bedroom: 5.4%
- 2 Bedroom: 5.7%
- 3 Bedroom: 5.5%
Such ROI benchmarks position Arjan as a lucrative and stable investment zone – for both end-users as well as investors targeting healthy rental income. By entering at the right juncture, investors can maximize short and long-term gains on the back of rental returns and capital appreciation.
Key Takeaways – Why Arjan Works
In light of the strong fundamentals, here is why Arjan works well for investors keen on entering Dubai’s strengthening suburban real estate market:
- Strategic Location – Rapid connectivity expansion
- Proximity – Established neighborhoods, Dubailand, tourist hotspots
- Developer Activity – New residential projects adding to demand
- Affordable Entry – Compared to other Dubailand areas
- Rental Returns – Gross yields upwards of 6% make for a vital income avenue
- Capital Growth – Further upside in the medium-term basis infra boost
For investors who have assessed the Dubai market investment perspective in detail, Arjan clearly comes through as a promising emerging zone that offers a sweet spot between rent generation and asset value growth. By entering at the appropriate juncture and holding through the next appreciation cycle, optimal risk-adjusted returns can be realized.
Conclusion – Growth Outlook Robust
In a nutshell, Arjan demonstrates a compelling fundamental investment case basis for its prospects. The analysis shows structural solid undercurrents falling in place across demographics, balanced supply, access triggers, and market stabilisation. As meaningful drivers transform Arjan positively, investors have an optimal window for securing assets early.
