_IN FOCUS: BUSINESS BAY

The 34% growth in residential prices in Business Bay since the start of the pandemic is part of a broader repivoting of the city’s centre of gravity towards Central Dubai, encompassing the DIFC, the Sheikh Zayed Road area between the Trade Centre and Dusit Thani, as well as Downtown.

Faisal Durrani May 24, 2023

Business Bay has found itself on the doorstep of Dubai’s main business district and in very close proximity to arguably the emirate’s most lifestyle retail-rich neighbourhoods, such as Jumeirah and Al Safa.

EXCELLENT INFRASTRUCTURE

Excellent road infrastructure, courtesy of the Parallel Roads Project and much-improved access to Downtown and the DIFC, the emergence of a vibrant residential community (thanks to the delivery of almost 7,000 homes in 2019 and 2020), and prices that are, on average, 35% cheaper than Downtown are all contributing factors to the all-star status of Business Bay.

Developers are also concentrating their efforts on developing some of the city’s most expensive homes in Central Dubai in an attempt to satisfy the burgeoning demand for luxury homes.

Business Bay is also 35% cheaper than Downtown. It is attracting the attention of new-to-Dubai branded residential operators, including the likes of the Ritz Carlton, Mama Shelter and Mr. C, although the latter are further up the canal.

A BRANDED RESIDENTIAL HUB

The growing concentration of branded residential property in Business Bay adds to Dubai’s established position as one of the world’s largest branded residential markets. These luxury units are being rapidly snapped up as Dubai jostles for a position as one of the world’s busiest luxury markets. Indeed, with 219 home sales at over US$ 10 million, Dubai emerged as the 4th busiest ultra-prime market last year behind New York (244), Los Angeles (225) and London (223).

It is no surprise that, as premium waterfront plots have all but been sold or developed, Dubai Canal has filled a gap in the market by providing added opportunities. Indeed, we expect the Marasi Drive area of Business Bay, specifically Canal fronting plots, to be a new hot spot in Dubai – particularly with investors, pied-de-terre buyers, and professional end-users working in DIFC and Business Bay.

It’s not just Business Bay but the wider Central Dubai area that has caught the attention of developers and buyers. In cities around the world, such as London, or New York, city centres are easily identifiable and often command the highest prices. What we are seeing now is the emergence of Dubai’s new centre. The type of developments and branded residential operators entering Central Dubai are helping to cement this.