Jumeirah Islands, an upscale villa community, is back in the reckoning as a sought after residential development.
Real estate agents say the villa community has seen a selling price and rent increase this year to date, with occupancy levels on the rise.
Data from Better Homes, a real estate consultancy, points to an increase of four to 20 per cent increase for prices of four-bedroom villas.
The units are now available for in the range of Dh5 million to Dh6 million compared to Dh4.8 million to Dh5 million at the start of the year.
Five-bed villas are currently priced between Dh8 million and Dh9 million compared to Dh6.3–Dh6.5 million earlier this year, a massive jump of 27 to 38 per cent.
On the lease side, four-bed villas are available for rent at Dh350,000 pa, compared to Dh300,000 at the beginning of the year, while five beds can be rented for Dh450,000 compared to Dh320,000.
"Jumeirah Islands is conveniently located close to Sheikh Zayed Road and as the villas are larger than most and sit on plots that are also marginally larger, people are attracted to this community. Occupancy is rather high, but not 100 per cent as there are units available in the market for sale and lease,” says Tom Bunker, Investment Sales Consultant, Head Office, Better Homes.
According to information shared by PropSquare Real Estate, Jumeirah Island four-beds (entertainment foyer) and Jumeirah Island five-beds (master view) have seen price increases of 25 per cent.
The former are currently priced at Dh5.7 million compared to Dh4.5 million, while the latter are being offered at Dh7.8 million compared to Dh6.5 million.
Rentals for four-beds have jumped to Dh325,000 pa, compared to Dh260,000, while five-beds can be leased for Dh450,000 to Dh350,000 pa.
Faisal Baig, Director, PropSquare Real Estate, says: “Mainly the buyers are Westerners and mostly end users. It is one of the best rated communities in Dubai, offering large plots with detached villas.”
He adds: “Most of the enquiries we get are for Jumeirah Island nowadays.”
In its third quarter report, CB Richard Ellis said rentals for luxury villas on the Palm Jumeirah, Emirates Living and Jumeirah Islands had stabilised over the last nine months, but smaller villas and townhouses bore the brunt of oversupply, resulting in rental decline.
Asked if there were any distress sales happening in the community, Bunker says: “For the most part, distressed sales have disappeared from this market but on occasion one or two may be found, but they are quickly removed from the market by savvy investors or end users.”
Both, Faisal and Bunker believe price appreciation can be expected over the next two years.
“While Jumeirah Islands has recovered quite nicely these last couple of years, I still believe that there might be some room for appreciation but exactly how much only time will tell,” Bunker adds.
Jumeirah Islands consists of 46 clusters within man-made islands spread across an area of 300 hectares. Each cluster comprises 16 individually styled villas.
The development is situated on east of the Sheikh Zayed Road, between Interchanges 5 and 6. The project comprises a total of 736, four and five-bedroom villas designed along four core themes.
The designs of the villas are portrayed under four core themes: Oasis; Islamic; European and Mediterranean. Lakes form such an integral part of the Jumeirah Islands, with a land to water ratio of 23/77, that it is believed to be the highest in the world, according to Nakheel website.