Dubai’s Al Jaddaf district offers investors attractive entry points with square foot prices down 30%, as area prepares for major transformation by 2030, experts say
Property values in Dubai’s Al Jaddaf present an attractive entry point for investors, with square foot prices now at AED 1,790 compared to their previous peak of AED 2,543, creating a compelling opportunity in the emirate’s real estate market, experts told Arabian Business.
The district, situated 10 minutes from Downtown Dubai and 15 minutes from Dubai International Airport, has attracted developers including Binghatti, Dutco, and Ellington, who have recently announced residential projects in the area.
“Al Jaddaf is an interesting area, with some key infrastructure already in place like the metro, offering a waterfront, and also home to the ever-popular Versace Hotel as well as the highly sought after D1 Tower,” Rennie Sanger, Senior Off-Plan & Investment Consultant at haus & haus real estate said.
Al Jaddaf to house Dubai’s new technology district with 4,000 Jobs by 2030
Echoing the sentiment, Ahmed Alhelou, Senior Sales Consultant at Betterhomes, explained the area presents “rental yields between 6 per cent and 7 per cent,” making it a “promising” option for investors seeking returns.
“There is a particularly high demand for one-bedroom apartments in Al Jaddaf, especially for short-term rentals. This property type is popular with business travellers and tourists, creating an opportunity for investors to achieve high occupancy rates and stronger rental returns compared to long-term leases,” Alhelou said.
The district is set to transform into the ‘URB‘ Urban Technology District by 2030, with plans to create 4,000 jobs.
“Buying in Al Jaddaf today will mean you will benefit from the most appreciation as the area takes shape and infrastructure, F&B and more bolsters up this community,” Sanger explained, adding that however, development will require time.
“The area and masterplan for the community will take time to truly take shape, so the early investors will need delayed gratification in terms of value, but sure enough, it will happen.”
In addition, the presence of Jameel Arts Centre positions Al Jaddaf as a cultural and technological hub, distinguishing it from other residential areas in Dubai.
“It is positioning itself as being an area of culture, waterfront and tech and a little different to the run-of-the-mill apartment lead communities, which are densely populated with his rise apartments and the community amenities we’ve learnt to expect,” he said.
Property experts reveal long-term investment potential of ‘hidden gem’ Al Jaddaf
For those considering whether to rent or buy in Al Jaddaf, both consultants recommend purchasing for those with financial means.
“If you have the financial means to purchase, it is always a better idea to buy compared to renting, as you will essentially own the asset, which might initial be for personal use, but could later be used as an investment too,” Sanger advised.
In addition, Betterhomes’ Alhelou revealed that the area’s connectivity through the Al Jaddaf Metro is “one of its strongest selling points.”
“It is incredibly well-connected. The nearby Al Jaddaf Metro station adds to its appeal, making the area perfect for both long-term residents and short-term rental investors,” he said, adding that the area provides a “variety of opportunities” for first-time buyers as well as tenants.
As for resale value, Alhelou explained that reselling property in Al Jaddaf depends on “the overall market conditions and the specific property features.”
“Competitive pricing and good property condition are key to ensuring a quick sale. Sellers can expect reasonable resale value if they keep up with market trends and offer attractive deals,” he said.
Regarding investment strategies, Sanger suggests Al Jaddaf suits long-term rental investments. “Al Jaddaf is more suited for long-term rental investment, with view it will accommodate permanent residents who like the ‘affordable’ option to rent, whilst offering easy access to key areas like DIFC, Dubai Healthcare City and so on.
“The prices today are reflective of an area that has room to grow both in terms of infrastructure, prices and popularity and amongst Dubai’s residents, as to some, it is still a bit of hidden gem,” Sanger concluded.
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