Prices rise up to 50% in Arabian Ranches

Secondary market prices of villas and townhouses in Arabian Ranches have seen an increase of around 33 per cent to 50 per cent in this year to date, said realtors.

Vineet Kumar, Head of Sales – Dubai, Asteco Property Management, said: "Beginning of this year, two- and three-bedroom villas in Arabian Ranches were sold for Dh650 to Dh750 per sq ft but currently prices vary between Dh900 per sq ft and Dh1,250 per sq ft depending on the size and location of the plot."

According to Asteco, sale price for a type 4, two-bedroom Al Reem villa of 1,800 sq ft in Arabian Ranches was Dh1.2 million in January this year. The same property is now around Dh1.6 million.

"Also, a type 2, three-bedroom Saheel Villa of 3,772 square feet area was around Dh2.8m in January this year. Currently the villa is around Dh3.8m," said Kumar.

Avais Najam, Managing Director, Venture Horizon Real Estate broker, said: "Current prices for villas and townhouses in Arabian Ranches is around Dh1,000 per sq ft. The lowest price that we have seen this year during the first quarter was around Dh650 per sq ft. So in effect prices have gone up almost 50 per cent in some units in Arabian Ranches from the first quarter of this year up to now.

"We are aware of a type 15 Mirador villa with a built-up area of 4,401 sq ft selling for Dh4.9m, which is around Dh1,100 per sq ft. Last year during the peak in August 2008, sales price in Arabian Ranches were around Dh1,000 per sq ft."

He said service charges in Arabian Ranches is around Dh7,000 per annum.

Yolanta Farah, Associate Director, Head of Residential Sales & Leasing, Group Seven Properties, said some of the townhouses in Palmera of Arabian Ranches have recorded an increase in price by about 10 per cent since the first quarter of this year.

"Between March this year and now in October while some independent villa prices have come down three per cent, the Al Reem and Palmera townhouses prices are up by around 10 per cent," said Farah.

Asking price

"The current asking price in Arabian Ranches is around Dh900 a sq ft to Dh1,300 a sq ft. It is, however, lower by around 37 to 65 per cent since September last year which ranged from Dh1,650 per sq ft for Al Reem townhouses to as much as Dh2,000 per sq ft for Mirador villas on the golf course."

In Arabian Ranches, the smallest drop in price has been recorded in Palmera and the highest in large villas of four- to five-bedroom villas in Miradors and Alvoradas.

Annetta Shaw, Manager – Residential Sales and Leasing, Green Community, Better Homes, said: "The current price is in the range of Dh900 and Dh950 per sq ft. Properties that have a golf course view and a private swimming pool can fetch up to Dh1,000 per sq ft upwards."

"In January 2009 there was a lot of panic selling and prices dropped down to Dh650 per sq ft and Dh700 per sq ft," said D'Souza.

Sales price of villas in Al Reem (type 2E) with a built-up area of 2,789 square feet, are currently sold for Dh2.5 million, while property type 3E, with a built up area of 2,229 square feet area, is sold for Dh2.16m."

Najam said Venture Horizon Real Estate has recorded a strong buying interest in the Arabian Ranches since the beginning of September. Furthermore, several owners previously interested in selling their properties have now withdrawn them from the market.

"There has been very strong buying from the Indian community. However, Arabian Ranches is predominantly populated with European nationalities," he said.

Shaw said mostly end-users with mortgages and cash buyers looking for good deals are eyeing Arabian Ranches.

Farah said the community is becoming increasingly European with the kind of schools available in the area.

"The Ranches together with Lakes and Meadows have been the main reason for tenants upgrading their homes from Mirdiff areas, which was particularly evident in the first and second quarter of 2009," said Farah.

Meanwhile, Arabian Ranches is currently handing over townhouses in Alma Townhouses and these are getting occupied. Its La Avenida villas will be handed over a year later.

Rentals

According to Group Seven Properties, generally, from March 2009 rental prices in Arabian Ranches have come down with the exception of the four-bedroom Saheel villas, which have recovered some of the rental drop earlier in the year and have increased from an average of Dh250,000 per annum in March 2009 to Dh270,000 per annum in October.

Demand has been higher for larger properties from a rental perspective due to upgrades within the community and from other areas of Dubai.

"Four-bedroom villas in Saheel and Savana villas seem to have recovered some of the earlier rent drop and are showing a slight rental increase, compared with end of the first quarter of this year," said Farah.

"The rentals for four- and five-bedroom villas have come down considerably less marking a drop of around 26 per cent to 34 per cent since September last year," she said.

Current average rentals in the Arabian Ranches hover around Dh60 per sq ft to Dh65 per sq ft.

"The three-bedroom villas Saheel villas are fetching slightly less than that at around Dh56 per sq ft," said Farah.

In Al Reem, two-bedroom townhouses are the cheapest properties in the community, with rentals going Dh100,000 per annum upwards. Rentals on the luxurious large villas in Mirador and other communities go up to over Dh300,000 per annum.

During the period from September last year, the rental prices have come down around 43 per cent to 47 per cent more for townhouses and smaller villas like the three-bedroom Saheel & Savana. Townhouses like the Palmera have recorded the lowest drop.

Better Homes said Arabian Ranches is still one of the more favoured communities in the villa segment for expatriate workers because of its integrated community services such as schools, golf club, community center, park and pools.

"With prices more affordable, clients tend to be purchasing when previously they chose to rent; and preferred villa choices include the two-bedroom units and the three-bedroom units," said D'Souza.

"With prices becoming affordable, many tenants have contacted their landlords hoping to buy their rented properties. However, rental transactions are currently still higher than sales," he said.

Farah said tenants already living in the Ranches rarely move to other areas.

"You could say the community is addictive. The initial problems of early years are over. It is now a great place to live," she said.

According to Venture Horizon Real Estate an average of five villas change hand every week.

"There is an increased activity in Arabian Ranches and we have about 30 properties but depleting very rapidly," said Najam.

Better Homes saw a limited number of transactions this year and expects to see more transactions as the market starts to recover.

Arabian Ranches also has an active owners association in place with an active website.

Better Homes said the community has an Interim Arabian Ranches Owners Committee (IAROC) in place. According to information posted on its website, the IAROC was created to involve the owners in the management of the community as a first step towards the formation of the Arabian Ranches Owners Association.

Better Homes said work on the new lake next to the Jess School is underway within the community.

"There is also construction on the new Emaar Health Care Centre located near the existing Retail Center," said Shaw.


Project profile

Arabian Ranches is a multi-billion dirham development across 1,650 acres that has an 18-hole championship course designed by Ian Baker-Finch and Nicklaus Design.

The development houses more than 4,000 addresses comprising luxurious one-storey and two-storey single-family homes.

This year, the developer had handed over 212 luxury homes, the Alma town homes; and La Avenida, a cluster of 17 luxury villas within Arabian Ranches.

Al Reem is a 208-acre themed-villa community of two and three-bedroom villas in varying sizes of 1,690 square feet to 3,155 sq ft.

The Hattan villas are detached villas of 5,443 sq ft to 7,230 square feet comprising two-storeys, four- to five bedroom.

Mirador la Coleccion villas are detached villas of size 3,458 sq ft to 6,911 square feet of four to seven bedroom.

Palmera homes are 1,889 sq ft to 2,936 sq ft of two to three bedroom villas.

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