Dubai Townhouse Buying Guide Q4 2016 Part 4: Recommendations

December 25 2016

By Lookup.Ae Sales

This report will give you investment recommendations for townhouses based on potential objectives: location, desirability or capital gains.

Objective: Location

If location is a priority for you, then this chart will help you compare the various locations of ready & off-plan townhouse communities.

Prime Locations:	Springs, The Lakes
Emerging Core:	Jumeirah Village Triangle, Jumeirah Village Circle, Al Furjan, Dubai Hills Estates
The Suburbs:	Arabian Ranches, Victory Heights, Akoya, Mudon, Green Community Motor City, Sustainable City, Serena, Villa Nova
Outer Dubai:	Mira, Town Square, Mira Oasis, Akoya Oxygen, The Pulse, Urbana

Objective: Desirability

The below table helps rank communities according to desirability (i.e. the key factors that end-users look for when purchasing):

Rank	Community	Positives
1	Springs	Large community of SZR; part of Emirates Living communities. 3 community centers, many schools, clinic and petrol-station. Quick accessibility to all core areas of Dubai. High transaction activity. Only major community in a prime-location.
2	Arabian Ranches	Two communities with townhomes: Reem and Palmera. Reem more affordable option. Ranches is a premier suburban development; high net worth community. High standard of community living.
3	Green Community Motor City & DIP	Among the most beautiful communities in the city. The 3 + Study options in these communities is extremely popular. Limited supply of these units. GC DIP is priced much lower as it is a leasehold property.
4	Victory Heights	Only 4 bedroom townhouses available. Quiet suburban development built along a golf-course. Excellent accessibility to prime areas of Dubai.
5	JVT	The 1 & 2 bedroom townhomes in JVT are a popular purchase for families and/or investors looking for townhome holdings. Unique property types (one of only two communities with 1 bed townhomes; the 2 bed units are particularly spacious). Good accessibility; nice suburban lifestyle. Quiet neighborhood.
6	JVC	The only community in Dubai with 1, 2, 3, 4 and 5 bed townhomes. The 1 & 2 bed units are by Nakheel and are similar to the ones in JVT. The 3 - 5 bed townhomes are by private developers and are all 3 story. JVC is maturing quickly but there is still a lot of development to take place. Limited amenities. Buyers should take 3 - 5 year view.
7	Al Furjan	Close to Sheikh Zayed Road. Mall and all major amenities close-by. Community still emerging; larger area still under-development. Metro-line being built close-by.
8	Mira, Reem	Brand new community; no amenities as yet. First major handover in Outer Dubai. Excellent entry price points (affordability). Capital & rental performance of this community will be a good barometer of market health in the coming 6 - 12 months.

Objective: Short & Mid-term Capital Growth

The following four communities are the ones we believe (at this point in December 2016) to offer the best prospects for capital growth:

1. Mira Oasis

Investors typically realize significant capital gains when they find below market opportunities 6 – 15 months before a project hands over.
Mira Oasis is located next to the recently handed over Mira and will be delivered from Q4 2017 – Q4 2018. Mira Oasis was positioned to be an upgrade on the Mira townhouses.
At the moment, there are some buying opportunities at original price (OP) or in some cases below OP.
In order to take advantage of these types of opportunities, buyers must have available cash of at-least 50% of the original price + closing costs. Mortgages are not yet available.
Current transaction values range from AED 1.6 – 2.4 million for 3 & 4 bed units.

2. Warsan Village

Warsan Village is the most affordable townhouses in Dubai. Handovers will take place starting from Q1 2017 and continue through the year.
These units were all sold out AED 1.7 – 1.85 million. Currently there are opportunities to purchase 3 bedroom townhouses for AED 1.55 – 1.65 million.
These units will earn a healthy rental yield (6.5% at minimum). Strong prospects for capital growth of at least 10 – 15% within 12 – 15 months.

3. Maple in Dubai Hills

Of all the off-plan future supply, Maple promises to have the best location and be in one of Dubai’s most desirable future communities – Dubai Hills.
Investing in quality and location will always pay off in the long-term.
Investors have two strategies for Dubai Hills: we can help you purchase units from the primary market (limited 4 & 5 bed units still available).
The other strategy is to utilize cash and purchase below original price in the coming 12 months. However, these types of opportunities are rare and have to be acted upon rapidly.

4. NSHAMA Town Square

NSHAMA’s Town Square development is the only community we believe has extremely strong prospects for short-term capital gains.
NSHAMA have launched four townhouse enclaves: Zahra, Hayat, Safi and Noor – about 1,500 townhouses in total. It is possible to purchase these units from the secondary market with premiums ranging from 8 – 12%.
Currently 3 bed units are for AED 1.35 – 1.45 million (significantly cheaper than Emaar’s Mira, which is ready across Al Qudra Road where similar 3 bed units are transacting for a minimum of AED 1.8 million.
Similarly the 4 bed units are for AED 1.75 – 1.9 million (much cheaper than the Type 2E and 1E units in Mira which have starting prices of AED 2.3 million at the moment).

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