It has been widely reported that as Dubai’s property market is maturing, hot spots have emerged where growing demand has caused prices to stabilise and in some places increase. This was initially caused by Dubai tenants taking advantage of the market and upgrading their lifestyles to better areas such as Dubai Marina. However it now seems this effect is occurring on a wider scale across the UAE.
A new wave of migration from the neighbouring emirate of Sharjah has swept into Dubai. Sharjah’s residents have been keen to seek out addresses in newly completed projects such as some of those on Dubai Marina.
“We expect that older properties [in Sharjah] which have been neglected in terms of investment and maintenance will be the first ‘victims’ in the shift in market dynamics,” said Ihsan Kharouf, director at the Sharjah office of Cluttons.
“There is a perception Dubai properties have been finished to a higher quality, which may also be a symptom of the scale of development that took place in Sharjah,” said Kharouf. “The difference in supply is another reason for the rate differences.”
The flocking of UAE nationals from the northern emirates to Dubai has had the most effect on Dubai Marina and Business Bay with tenants looking for “Affordable quality”.
Source: Gulf News