Residential prices in Business Bay have risen 17 percent in two years
The value of apartments in Business Bay has risen 17 percent in two years
Photo Source: https://www.timeoutdubai.com/
A repivoting in buyers’ interest
The Business Bay area in Dubai is witnessing one of the highest growth rates in the city’s residential market. The value of apartments in Business Bay has risen 17% in two years, compared to 25-30% in Dubai Marina, according to property consultant Knight Frank. This translates into a redefining of the center of Dubai, with mid-income end-users and investors choosing more affordable apartments here. Thus, demonstrating that there is more to Dubai’s blooming residential market than the traditional Palm, Marina and Dubai Hills and other premium locations.
Among the factors contributing to this rise is the stellar road infrastructure via the Parallel Roads Project and improved access to Downtown and the DIFC.
According to Faisal Durrani, head of Middle East Research in Knight Frank, the fact that the value of apartments in Business Bay has risen 17 percent in two years is “part of a broader repivoting of the city’s center of gravity towards Central Dubai, encompassing the DIFC, the Sheikh Zayed Road area between Trade Dubai and Dusit Thani, as well as Downtown”.
And Business Bay is no longer just about the AED 1 million to AED 3 million apartments. These days, USD 10 million to USD 20 million ticket prices are being achieved for super-premium offerings in and around Central Dubai, ‘which would have been perceived to be outlandish five years ago’ and ‘giving Business Bay the privileged position of an emerging prime location in Dubai’.
Comparing prices
With nearly 7,000 homes were delivered in 2019 and 2020 in Business Bay, the area’s prices were 27% cheaper than Downtown. After Q4 2020, once the worst period since the outbreak of the pandemic, Business Bay witnessed increased interest from buyers, namely in terms of larger units.
“Branded residential developers are alive to the geographic significance of Business Bay and we’re seeing ultra-high-end operators such as the Dorchester, The Cipriani family’s Mr. C Residences and Four Seasons upstream along the Dubai Canal bringing products that are redefining prices along this stretch of Central Dubai,” said Dean Foley, Head of Residential Project Sales & Marketing at Knight Frank.
According to Knight Frank, the Marasi Drive area of Business Bay is expected to be the new hot spot in Dubai, both for investors and for clients looking for a holiday home, as well as professionals who work in DIFC and Business Bay.
Apartments in Downtown and on the Palm Jumeirah have experienced the strongest price growth since the onset of the pandemic (23% and 22%), while Business Bay (17 percent) follows in third place.
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