Dark clouds hang over waterfront community as on-going construction work keeps potential tenants at bay
14th July 2013, Dubai: Once popular among residents because of its proximity to the Dubai beachfront, Jumeirah Beach Residence's (JBR) charm appears to be gradually fading, propertyfinder.ae, the UAE's leading real estate portal, has revealed in its latest Q2 2013 report.
JBR saw its ranking in the most searched locations to rent a property in Dubai dwindle from 7th in the first quarter of 2013 to 10th place in the second quarter. The finding follows an extensive analysis of data from over 120 million property searches involving around 1.8 million visitors to the propertyfinder.ae website.
Renan Bourdeau, managing director, propertyfinder.ae, said JBR's plunge in ranking could be associated with on-going construction projects around the area that have dampened the appetite of possible tenants.
“Major road construction work has resulted to traffic buildup, as well as the loss of beach access and views of the sea for residents – two of JBR's unique selling points. Because of these, it has been rather difficult to entice potential tenants to look into renting a property in the area,” he said.
The waterfront community's appeal among homebuyers remained diluted as well in the second quarter as it took the 10th position in the most favoured locations to buy residential properties in Dubai.
Bourdeau said that while accessibility is a challenge at this time, the future prospects for JBR continues to be promising.
“Over the past years, the area has attracted considerable investments not only from property developers, but also from hospitality and retail investors as well. By 2014, a 5,000-square-metre boutique mall (The Beach) is expected to rise in JBR, featuring over 40 food and beverage outlets, retail shops and entertainment facilities.”
“Another mixed use development, the AED 6-billion man-made Bluewaters Island project, is also being constructed off the coast of JBR, which will offer additional accommodation, hospitality, retail and entertainment options to Dubai residents. All of these will hopefully help in shifting the trend and driving tenants and homebuyers back into the JBR area in the foreseeable future,” he explained.
These developments will also benefit those residing in Dubai Marina, which is the most searched location to buy and rent properties in Dubai, according to the propertyfinder.ae quarterly survey. Dubai Marina accounted for over 18 per cent of the buy searches and 17.82 per cent of the rent searches in Q2 2013.
Other popular locations for rented homes in the emirate included Jumeirah Lake Towers, Palm Jumeirah, Downtown Dubai, The Springs, Arabian Ranches, Dubailand, Al Barsha and Jumeirah. Out of 10 most sought-after locations, Dubailand made the most dramatic headway, according to the report.
Home to future megaprojects, Dubailand has opened in phases to include new stocks of residential properties such as upmarket homes in Al Barari development. The area has made a major leap in ranking from 15th in Q2 2012 to 7th place in Q2 2013, reflecting a very strong interest from prospective tenants.
To view the second quarter report, visit the propertyfinder.ae blog on the website.