Business Bay, the mega-development of Dubai Properties, recorded a growth in the volume of sales transactions by 24% in Q3 2013 compared to the same period in 2012. With over 135 residential transactions reported in the third quarter of 2013, the total value of residential and mixed-use property sales in Business Bay was close to Dhs268m, an increase of 62% compared to the same period last year, according to data by the Dubai Land Department.
The third quarter (July to September) of 2013 recorded a 12% growth in volume of sales transactions compared to the second quarter of 2013. Over 135 sales transactions were made during this period, valued over Dhs268m, an increase of 12% in value of sales transactions compared to the second quarter of 2013. The highest number of transactions were made in September with 63 apartments and mixed-use units sold at a total value of over Dhs115m, according to data by the Dubai Land Department.
Porush Jhunjhunwala, Director at Banke International, the premier property sales company with a strong roster of residential and commercial properties in Dubai, said, “Business Bay has emerged as one of the front-runners driving the last few months with rental rates and sales prices firming up during the third quarter of 2013 and now witnessing further increase in demand and take-up by both property buyers and tenants.”
He added, “Residential rental rates in Business Bay are appreciating at notable levels outperforming the market at large. Occupancy rates are increasing with new supply being added to the market. The rich array of lifestyle amenities in neighbouring destinations like Downtown Dubai, including The Dubai Mall, Souk Al Bahar and several world-class hotels and leisure attractions, has made the location highly sought-after by tenants, owner-occupiers and investors.”
Studios in Business Bay can be rented from Dhs60,000 – Dhs75,000 per annum, and are a preferred choice by executives while couples and small-sized families opt for 1 or 2 bedroom apartments at rents ranging from Dhs75,000 – Dhs90,000 per annum and Dhs115,000 to Dhs135,000 per annum, respectively. Large-sized families or those with larger budgets can find 3 bedroom apartments ranging from Dhs155,000 to Dhs185,000 per annum.
Residential sales prices range from Dhs810 to Dhs1,500 per square feet1 The price range is governed by the the stage of construction, the views offered, build quality and location apart from unit size and type. Office sale prices are in the range of Dhs700 to Dhs1,200 per sq feet and are available for rent at Dhs60 to Dhs80 per sq ft2 per year on a shell and core basis. Among the residential property choices in Business Bay are homes in Executive Towers; as well as apartments in Churchill Executive, U-Bora residential tower, Windsor Manor, Ontario Tower, Mayfair Residency, among others.
Among the commercial office space at Business Bay are Churchill Executive, Oberoi Tower, One Business Bay, Citadel Tower, [email protected] Bay, Al Manara Tower amongst others offering a range of amenities including drop-off area for employees or clients, basement car parking, cafes and pedestrian walkways.
As the bustling hub located centrally in the city, Business Bay has multiple towers – some developed by Dubai Properties and others developed by individual developers – for residential, commercial, hospitality and mixed-use real estate. The community is in close proximity to the ‘Center of NOW’ Downtown Dubai, and also has direct access from the Dubai Metro station. Popular shopping destinations such as The Dubai Mall and Souk Al Bahar are about 10 minutes drive from Business Bay.
Residents in most of the residential buildings benefit from facilities including community pools. Many of the towers have ancillary retail at the ground floor offering pharmacies, restaurants and cafes, souvenir and gift shops. Business Bay’s appeal will be further bolstered with the newly announced projects such as the Dubai Modern Art Museum and Opera House District, and the Sheikh Zayed Bin Mansour Al Nahyan Mosque, among others.
Due to strong demand, Banke International expects rental vacancies to be lower in the short-medium term, pushing rental rates as well as sales prices higher underlining the strong outlook for residential properties in Business Bay.