Dubai Property Market
Property sale volume
Property sale value (AED)
Investment in Arabian Ranches real estate is a study in timing
To some degree, all property investments are impacted by the time and market conditions at which the initial acquisition is made, but the recent history of the Arabian Ranches typifies this more than most submarkets in Dubai.
The area is one of the most characterful places to buy in Dubai too. Masterplanned by prestigious developer Emaar, the Ranches now span 3 major projects and over a dozen sub-communities, each offering residents a sought-after lifestyle. As well as the beautifully designed villas – that take architectural inspiration from Arabian heritage – the Ranches also feature a landscape of golden sands and oasis-like green pathways and mixed-use areas.
- Abu Dhabi
- Ajmal Makan City
- Al Barari
- Al Habtoor City
- Al Sufouh
- Arabian Ranches
- Business Bay
- City of Arabia
- DAMAC Hills
- DAMAC Lagoons
- Downtown Dubai
- Dubai Creekside
- Dubai Harbour
- Dubai Healthcare City
- Dubai Hills
- Dubai Hills Estate
- Dubai Islands
- Dubai Land
- Dubai Maritime City
- Dubai South
- Dubai Sports City
- Dubai Studio City
- Emaar Beachfront
- Jebel Ali
- Jumeirah Beach Residence
- Jumeirah Golf Estates
- Jumeirah Lake Towers
- Jumeirah Village Circle
- Jumeirah Village Triangle
- La Mer
- Madinat Jumeirah Living
- MBR City
- Nad Al Sheba
- Palm Jumeirah
- Ras Al Khaimah
- Sobha Hartland
- South Bay
- The Valley
- Town Square
- Wadi Al Safa 2
- Yas Island
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Arabian Ranches' Property Market Performance
Arabian Ranches property statistics for completed 4-bedroom villa properties:
- The average asking sales price in Arabian Ranches in March 2023: 5.1m AED
- The average transaction sales price in Arabian Ranches in March 2023: 3.1m AED
- The average asking sales price in Arabian Ranches in March 2023 per sq ft: 1,350 AED
- The average transaction sales price in Arabian Ranches in March 2023 per sq ft: 1,150 AED
Overall, Arabian Ranches has now proved itself as one of Dubai’s most popular private villa communities – both with investors and residents.
It was also one of the first master-planned communities in Dubai and the whole UAE, offering investors the opportunity to own assets with inherent access to amenities such as landscaped parks, walking trails, swimming pools, lakes, medical centers, schools, and golf courses.
Property in Arabian Ranches has recorded considerable growth recently. Like much of the Dubai property market, transactions fell at the onset of the pandemic, but the Ranches quickly recovered, with buyers now even more appreciative of the space and privacy this location affords.
The last year has continued Arabian Ranches’ most recent growth trajectory.
When launching the first phase of the Ranches back in 2004, the area set the standard for closed-gate communities in Dubai.
In the years that followed, with the development of newer projects such as Damac and Emirates Hill, interest in the Ranches cooled slightly and prices softened. However, given the lower capital outlay and subsequent addition of Arabian Ranches II and III – and the additional facilities and amenities these new projects brought – the Ranches have recovered a lot of their initial popularity and consequently capital values have increased significantly in the last few years.
Average capital appreciation in Arabian Ranches over the past 12 months
How to choose a property for investment in Arabian Ranches
There are many different types and sizes of villas available to investors at Arabian Ranches. Like any market in Dubai and elsewhere, investors purchase what suits their budget and portfolio needs, however, it is clear that some overarching trends are emerging in recent transaction data in the Arabian Ranches market.
The data reveals buyers and investors are favouring the primer end of the market. Transaction volumes here have outperformed the rest of the Ranches stock and recorded a 12% increase in the volume of transactions.
In terms of the locations and sub-communities in the Ranches, investors have focused on Mirador la Coleccion and La Avenida.
Most properties at the 5m AED level in Arabian Ranches tend to be in demand. Investors value the fact that this price point affords them more spacious interiors and larger plots than most other property investment locations across the rest of Dubai.
As mentioned, a significant portion of Arabian Ranches stock is now around 15 years years old. Investors can pick up older properties at lower price points but should be mindful of the fact that residents and future buyers seek villa assets with luxury living in mind. Unless investors plan to renovate older stock, they may find it more difficult to let and sell these properties. Conversely, properties that have been extensively renovated recently can command a premium in this market.
Arabian Ranches rental market
Investors know that Arabian Ranches property has the potential to significantly increase overall ROI via the lettings market.
The area remains very attractive to families seeking more space, a luxury lifestyle and a safe community with easy access to schooling.
Furthermore, due to the maturity of the location, investors offering properties to let in Arabian Ranches know that they are far less likely to see their return hit by sustained void periods. This is a significant boon in an almost exclusively Villa–comprised market in which average rental returns can easily pass the half-a-million dirhams mark.
Starting rental values for Arabian Ranches property:
- Average rental price for Arabian Ranches properties March 2023: 350,000 AED
- Average gross yield for Arabian Ranches properties March 2023: 6.0%
Arabian Ranches real estate outlook
The dip in performance that Arabain Ranches property observed around 5 years ago was mainly due to oversupply and competition from newer gated community projects.
Now, and going forward, these issues seem to have been resolved and Arabian Ranches has carved out a strong niche as ‘affordable’ prime villas that are popular places to live.
Subsequently, forecasts show the Ranches market to be more predictable and robust than most of the Dubai market – even considering the whole emirate is set for sustained medium to long-term growth.
Of course, yields at Arabian Ranches are not as high as some of the more popular apartment-dominated markets or even some of the markets that can let to tourists, but the 6% figure does look very assured.
Arabian Ranches location and lifestyle
Like with much of Dubai property investment, it is hard to separate the appeal of Dubai’s lifestyle from the ROI; the lifestyle drives the demand for property and tenancy.
Arabian Ranches is widely viewed as one of the emirate’s most complete family neighborhoods and a very appealing place to live.
Residents here live within close proximity to a huge array of amenities and facilities, including schools, sports and recreation venues, and natural beauty spots.
What is the mix of off-plan and completed properties in Arabian Ranches?
Arabian Ranches’ property market is predominately completed properties because the market is largely comprised of the Arabaina Raches I development.
Some off-plan opportunities may still be available in Arabian Ranches II and III, which were initially launched a decade later.
What is the difference between Arabian Ranches I, II and III?
Arabian Ranches I is the original desert-themed development, which comprises 1,650 acres of sub-communities and lush landscaped vistas and golf courses. It launched in 2004.
Launching 9 years later, Arabian Ranches 2 added a further 1,900 homes across an additional 6.2m sq ft. This phase brought a lot of outdoor activities such as tennis and basketball courts and football pitches to Arabian Ranches.
Arabian Ranches III is the final phase and was launched in 2019, providing a further 1,000 properties. It is notable because of its vast community central park.