Dubai Property Market
- 36% YoY
Property sale volume
- 20% YoY
Property sale value (AED)
one of the most established markets in Dubai
Its prime location, luxury towers and strong commercial appeal have ensured that investors have recorded substantial returns from JLT property for much of the past 2 decades.
It’s true that like Dubai in general, and every other property market in the world, Jumeirah Lake Towers has seen some downturns in the past, but very few investors have failed to secure strong mid to long-term ROI from the market.
Now, as the Dubai property market looks to start its third major growth cycle, JLT is again being discussed as one of the emirate’s most assured markets. For years, the area has been under-supplied, making it very difficult for investors to acquire new assets in JLT, but over the coming months and years, more off-plan opportunities will come into the market, meaning it could be a beneficial time to make a purchase here.
Available
Properties
Jumeirah Lake Towers' Property Market Performance
Jumeirah Lake Towers property statistics for completed 1-bedroom properties:
- The average asking sales price in Jumeirah Lake Towers in November 2024: 1,400,000 AED
- The average transaction sales price in Jumeirah Lake Towers in November 2024: 1,300,000
- The average asking sales price in Jumeirah Lake Towers in November 2024 per sq ft: 1,405 AED
- The average transaction sales price in Jumeirah Lake Towers in November 2024 per sq ft: 1,521 AED
As mentioned, the Lake Towers are one of the more mature submarkets in Dubai real estate, having originally launched to investors almost 20 years ago.
JLT now consists of over 80 towers and although the majority of construction happened around 2008-10, some plots remain open to development still, and developers have recently launched some high-end projects.
The titular lakes Lake Almas West, Lake Almas East, JLT Lake, and their surrounding landscaping cover almost 8m sq ft and form the centrepiece of JLT while the towers themselves range from around 35 storeys to 65 storeys.
Given that all the residential buildings in JLT are towers, it is not surprising that the stock in this investment market primarily consists of apartments.
A final but important point of consideration with JLT property is that of supply. Given that it is one of the more mature and in-demand markets, the volume of transitions is relatively low. This is a consequence of under-supply rather than low demand. JLT is predominately completed properties and few investors have been willing to release their assets onto the secondary market in recent years. Subsequently, demand dramatically exceeds supply and apartments that do come onto the market are sold in days.
This will be alleviated somewhat with a spate of recent off-plan launches.
Average capital appreciation in Jumeirah lake towers over the past 12 months
- Jumeirah Lake Towers overall: 9.03% capital appreciation
How to choose an apartment for investment in Jumeirah Lake Towers
It’s estimated that over 60,000 people live at JLT, but twice as many work there. JLT is a neighbourhood that has a different work-life dynamic to Dubai Marina or Downtown Dubai. The lettings dynamics are closer to how Business Bay operates and investors should acquire accordingly – at least if they are looking to supplement capital growth with yields.
Residents of JLT tend to work there too. They are slightly older and have higher budgets to secure more spacious accommodation – and they live alone or with family.
This means that, unlike the nearby marina property market, in JLT investors should focus on 1-bed properties. The chances that the tenant market wants to share and split rental fees with friends in 3-bed apartments are much more unlikely. However, given the maturity of the market, a small but significant portion of residents who initially moved here to live alone have now moved their families in and larger apartments are becoming more popular, at least for a transitional few years before they look to move into a villa or townhouse.
What is universal in JLT is the demand for more space than similarly priced markets in Dubai.
Dubai rental market
As mentioned, investors looking to maximise ROI in JLT may want to consider some of the more executive 1 (or 2) bedroom apartments in towers with more high-end amenities.
These amenities can include F&B and retail offerings at the ground level, relaxation facilities, swimming pools, multipurpose halls, gyms and integrated apps.
Such is the tenant demand for property in JLT that the location has one of the fastest-rising rental prices in Dubai, with assets here commanding a 13% rise in annual rates over the past 12 months.
Starting rental values for Jumeirah Lake Towers property:
- Average rental price for Jumeirah Lake Towers properties November 2024: 95,000 AED
- Average gross yield for Jumeirah Lake Towers properties November 2024: 7.50%
Jumeirah Lake Towers real estate outlook
Real estate investment prospects in Dubai in general look positive over the short and mid-term. The UAE continues to attract major investment from all over the world, with governments, multinationals and high-net-worth individuals investing in a range of real estate and infrastructure.
As such property investment is set to benefit from this wider strong economic performance. As an undersupplied and popular place to live that attracts an affluent tenant market, assets in Jumeirah Lake Towers may benefit more than most.
One note to be mindful of is the new launches. Although off-plan opportunities will not flood the market, they will offer more chances to acquire JLT property than have been available over the last few years. They may also set a new local benchmark for luxury too and investors should evaluate any purchases against that.
Jumeirah Lake Towers location and lifestyle
It is hard to separate the appeal of Dubai’s lifestyle from the ROI of its property; the lifestyle drives the demand for property and tenancy.
JLT offers a more understated but still luxurious lifestyle than most of its contemporaries. It is also creating a strong reputation for offering some of Dubai’s finest eateries.
It is, of course, a major commercial zone and situated close to many of Dubai’s other major hubs. It is found adjacent to Dubai Marina on the southeastern side of Sheikh Zayed Road and served by the DMCC Metro Station.
What is the mix of off-plan and completed properties in Jumeirah Lake Towers?
The Jumeirah Lake Towers property market has been predominately completed properties for many years.
Consequently, demand for units is always high and existing investors have few difficulties securing an exit from the market when the time is right – often at a premium
What are the new off-plan projects?
Speak to us to get the most up to information regarding the current availability of both off-plan and completed properties in JLT, but some of the more recent project launches include Sobha Verda and Upper House.