Dubai, July 23, 2024 — The real estate market in City Walk has experienced a significant increase in property prices per square foot since January 2024, driven primarily by the new high-profile developments in Central Park and the latest launch by Meraas Verve.
Steady Climb in Prices
Since January 2024, we observed nothing less than 174 resale transactions registered until June 2024, while in the entire 2023, the overall transactions were 176 and 102 in 2022. This is a clear indicator that the demand is there, and prices are only going up. The median price per SqFt in 2023 was 1,850 AED, and until June 2024, we are at a median price of 2,150 AED/SqFt, representing a 14% increase and counting.
New Launches as Catalysts
Two major developments have been identified as the key catalysts for this price hike:
- Central Park Development: Central Park project quickly gained attention for its luxurious amenities, prime location, and innovative design. This development includes a mix of residential and recreational spaces, all centered around a beautifully landscaped park. The high demand for properties in this area, coupled with limited availability, has pushed prices upward. The median price today is 2,500 AED/SqFt.
- Verve Complex: Launched in July 2024, Verve is a state-of-the-art complex that promises to redefine urban living in City Walk. With its modern architecture, cutting-edge facilities, and strategic location, Verve has attracted significant interest from both local and international buyers. The developer sales price is 3,100 AED/SqFt on average.
Market Dynamics
Real estate analysts point to several factors behind the rising prices:
- Demand Outstripping Supply: The launch of these prestigious developments has led to a surge in demand, particularly among affluent buyers and investors looking to capitalize on the burgeoning market. However, the supply of new properties has not kept pace, creating a competitive environment that drives prices higher.
- Investor Confidence: The successful launch and strong sales performance of Central Park and Verve have boosted overall investor confidence in City Walk’s real estate market. This positive sentiment has translated into increased interest in other properties in the area, contributing to a broader rise in prices.
- Supply & Demand: Meraas continues to launch new developments in the area, which will only enhance the value of the existing City Walk buildings. One reason for this is the unit sizes in the new developments like Verve and Central Park, which are approximately 30% smaller.
Future Outlook
With the continued development and eventual completion of Central Park and Verve, experts anticipate that property prices in City Walk will remain on an upward trajectory. However, the market may experience some stabilization as new units are completed and made available for sale. Potential regulatory measures to control speculative buying and ensure affordability for local residents could also impact future price trends.
In conclusion, the dramatic increase in property prices in City Walk since January 2024 underscores the transformative impact of major developments like Central Park and Verve. As these projects progress, they are expected to continue shaping the market dynamics and influencing real estate values in the area.
For more updates on the real estate market and investment opportunities, stay tuned to our newsletter and online platforms.