Is Dubai Marina on The Brink of a Supply and Demand Issue?

2028
  • Dubai Marina is the most searched-for and inquired-about community in the country for people looking to buy or rent, accounting for 11.5% of all searches on propertyfinder.ae
  • Searches in Dubai Marina were up 27% in October, compared to October 2016. Meanwhile, listings were down by a quarter in the same time frame.
  • As the last few Marina-facing high-rises are completed, supply is finite, making for a potentially solid investment and some healthy competition.

The world’s largest man-made marina is home to some 180 high rises, and is the most sought-after address in all of the UAE.
 
Dubai Marina is the top area for searches and leads for both buyers and renters, according to data from Propertyfinder Group, the top property portal in the UAE.
 
Year to date, the community received about 10x more searches than the number of residents it can house.
 
“Dubai Marina consistently is the most searched community on the listings portal. Month after month. Year after year for the past 10 years since we launched,” says Lukman Hajje, Chief Commercial Officer of Propertyfinder Group. 
 
“There were 184,623 Dubai Marina searches in October 2017; almost 40,000 more than in October 2016. This is largely a reflection of our growing market dominance, but even with many new communities coming online and competing for both buyers and renters, Dubai Marina continues to dominate.”
 
So, what makes the area so popular?
 
The Marina is home to an iconic cluster of some of the most well-finished high rises in Dubai, and is a vibrant city within a city for dining, nightlife, and everyday living, making it a destination for both tourists and those who live and work in Dubai. It is also a great option for those who wish to live in Dubai but commute to Abu Dhabi.
 
The three kilometre stretch along the Gulf houses more than 120,000 people, the majority residing in residential towers.
 
The area is not just for window shoppers, either, as the most active area for transactions for the year. The Marina counted 1,525 units sold in the first half of 2017, up 11% from the same period in 2016, according to data from Reidin.
   
But with Marina Gate, a collection of three towers, slated for completion by 2019, the Marina’s development is drawing to a close. With the supply side flattening out, and competition for space heating up, where else are people looking?
 
The runner-up in search frequency, for those looking to buy, is Jumeirah Village Circle (JVC), which also offers a more affordable alternative for anyone willing to look inland.
 
The average price per square foot in JVC for a villa is AED 758, compared to AED 1622 in the Marina, according to the data from the month of October. Apartments have a similar price differential: AED 925 per square foot in JVC to AED 1570 in the Marina. 
 
Those looking to buy or rent adjacent to the sea, as well as near work hubs like Media City and Internet City, will have to elbow into the area either by paying a premium, or being willing to just get ‘close enough’.

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