Tenants pay premium to rent top floor units in Dubai
Higher floors in tall towers in Dubai Marina command over 20 to 30 per cent premium in the rental and sales market, according to property consultancy Core.
“Unsurprisingly, occupier decision making is principally driven by scenic sea views, thus, higher floors attract premiums from both rentals and sales transactions, sometimes in excess of 20-30 per cent from the marina views.
"As expected, penthouses in prime buildings are the most preferred products by the UHNWI audience,” the consultancy, which is the UAE associate of Savills, said.
With an additional supply of around 4,000 units anticipated until 2020, the prime expected stock continues to be limited and should probably keep the sales prices buoyant for prime residential units in the mid-term given the historical steady rental and investor demand in this geographically prime location, it said.
The master community, built by Emaar Properties, has witnessed the highest transaction activity in the apartment segment over the last few years.
Headline occupancy levels are nearly 90 per cent in top performing towers and the prime rental market has remained relatively steady due to the continued demand from expatriates.
However, prime sale prices have dropped 8 per cent year-on-year, creating investor opportunities through stable yields averaging between 5 and 6 per cent.
Though Dubai continues to grow southwards, with a strong focus towards developments along Expo 2020 and Dubai South, Core expects prime properties in Marina will continue to command premiums due to its foreseeable central location and strong social infrastructure, keeping the outlook for prime residential properties in this sub-market steady.
In a report titled 'Megatall: What does it take?' EC Harris has referred to Dubai Marina being home to 14 out of the 20 current tallest buildings in the emirate as the "tallest block in the world".
Princess Tower in Dubai Marina, standing at 414 metres, is currently the tallest residential tower in the world.
Other mega-tall towers in the master development are 23 Marina at 395 metres; Elite Residence at 381 metres; The Torch at 348 metres and Cayan Tower at 310 metres. Addition to the list by end-2016 will be Sheffield Holding’s 425-metre Marina 101.
Emporis data reveals that Dubai has 2,368 tall buildings of which 1396 exist, 394 are planned and 337 are under construction. Overall, there are 1306 high-rises and 527 skyscrapers.
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