As we approach the launch of the new face of City Walk in January 2025, the real estate landscape in this vibrant area is set to undergo significant changes. Coupled with the existing dynamics of Central Park, these developments are poised to affect both demand and supply, consequently impacting rental and sales prices. This article explores the trends from 2020 to December 2024 and anticipates future shifts.
Historical Price Trends: 2020 - December 2024
City Walk: A Rising Star
Since 2020, City Walk has experienced a notable upward trend in property prices. Initially, prices averaged around AED 1,700 per square foot, reflecting a steady increase fueled by its reputation as a premium lifestyle destination. By the end of 2024, prices are expected to reach approximately AED 2,200 per square foot, driven by increased foot traffic, high-end retail offerings, and a growing residential presence.
Central Park: A Steady Performer
Central Park, while not experiencing the same explosive growth as City Walk, has maintained stable prices, averaging AED 1,500 per square foot in 2020 and projected to rise to AED 2500 to 3200 by the end of 2024. Its appeal lies in its green spaces and family-friendly environment, attracting a different demographic that values tranquillity alongside urban living. The rise in prices driven by the latest launches in the area being Verve sold out in 2 hrs. at 3000 AED per SqFt
Demand and Supply Dynamics
City Walk: Increased Demand
The offer of buildings that were for rent and now are available for sale increases the value of the properties generating high demand and process going from AED 1700 to 2300.
The new developments promise enhanced amenities, upscale dining options, and community events, making the area even more attractive to potential buyers and renters. The anticipated influx of visitors and residents will likely lead to a demand-supply imbalance, pushing prices higher.
Central Park: Steady Demand Amidst Stability
In contrast, Central Park has enjoyed consistent demand, primarily from investors looking for high returns. The supply of properties by Meraas here has remained steady, which has helped the price increase. However, with City Walk's offers bigger sizes, families still preferring the larger layouts, affecting Central Park's attractiveness.
Rental Market Insights
City Walk: Rental Prices on the Rise
The rental market in City Walk reflects the overall sales trends. As sales prices have increased, so too have rental prices. In 2020, the average rent for a one-bedroom apartment was around AED 90,000 annually. By the end of 2024, this figure is expected to exceed AED 120,000, driven by heightened demand and the area's growing popularity.
The impending changes in January 2025 will likely lead to a further spike in rental prices, as new developments attract a wealthier demographic. The rental market is expected to become increasingly competitive, with potential tenants vying for units in this sought-after location.
Central Park: A Stable Rental Landscape
Central Park is mostly off-plan with the exception of the long-waited Building 1. The rent here is similar to City Walk for all different types
The Upcoming Transformation: Anticipated Effects on Prices
The launch of the new face of City Walk will undoubtedly have ripple effects across the real estate market in the area. As the transformation draws attention, more investors and buyers will be attracted to the potential for high returns. This influx is expected to exacerbate the existing demand, pushing both rental and sales prices higher.
In conclusion, as we look ahead to January 2025 and beyond, the dynamics of demand and supply in City Walk and Central Park will continue to evolve. The new phase of City Walk are set to redefine its market position, leading to increased property values. Investors, property owners, and renters must pay attention to it to not miss the chance to own a property in the area or capitalize your existing investment. We will provide more information about it as soon as the information is solid.
For further information please visit City Walk office located in City Walk Boulevard Shop 8 -02, Dubai or send us a message to 0567088798 we'll be glad to assist you.