A Deep Dive into Arabian Ranches’ Property Market Dynamics

Real estate is changing with fluctuations in prices, transaction types and developments. This blog post gives an in-depth look at the current trends and developments that took place in Arabian Ranches, a popular residential area in Dubai, in the last month and the months before it.

Record of Transfers Recently Made

In the last month in the past month, Dubai Land Department has Dubai Land Department recorded 41 transfer transactions of land in Arabian Ranches, a bustling residential area in Dubai. These transactions differed significantly in value, highlighting the neighbourhood’s variety of properties and price tiers.

The most expensive transfer was an entire 6-bedroom Polo Home sold for an astonishing AED 25,000,000. This property illustrates the extravagant luxury homes Arabian Ranches offers, attracting those seeking security, privacy, and a luxurious lifestyle.

In contrast, the cheapest purchase of the month was a two-bedroom townhouse located in Palmera 3, which sold for AED 2,420,000. This sale shows that Arabian Ranches also caters to those seeking more affordable options without sacrificing the quality of the community or the lifestyle it provides.

The average sale price of Arabian Ranches during the month was AED 5,206,134. This figure shows that the community serves many buyers, providing properties priced at different prices. The median price per square foot is AED 1,444, which gives prospective buyers a glimpse of the price metric used in this sought-after community.

The Cash Versus. Mortgage Transactions

At Arabian Ranches, the split between mortgage and cash transactions is a bit more mortgage-oriented, with a ratio of 34:66. The trend is slightly different compared to other neighbourhoods in Dubai. For example, Arabian Ranches 2 shows an increase in cash transactions at a 68:32 ratio. Downtown Dubai reveals a strong preference for cash transactions with a ratio of 80:20.

The data suggests a diverse buyer variety in Arabian Ranches, including cash buyers and people who prefer mortgage financing.

Average Ratio of Loan-to-Value

The average loan-to-value (LTV) percentage for Arabian Ranches is 72 per cent, comparable to the vast majority of Dubai communities. This large LTV ratio is a sign of a robust and healthy real estate market since it indicates that a large part of the property’s value is funded through mortgages.

Six-Month Trailing Price and Trends in Rental

The last six months have witnessed interesting changes in the prices and rental market in Arabian Ranches. These trends provide an insightful view of the real estate market’s condition and the community’s direction.

Price Trends

The trailing six-month price trends indicate an upward trajectory. From December 2022 onwards, the average cost was AED 4,607,200. That’s an increase of just 1% compared to the year before’s AED 4,666,148. The biggest increase was in February 2023, when the price jumped to AED 7,065,000.

Despite a few fluctuations, the trend was still upward, with the average price in May 2023 sitting at AED 5,206,134. That’s a reduction from the April 2023 average of AED 6,335,435. However, greater than the comparable timeframe in the preceding year.

Trends in Rental

Regarding rental transactions, there’s been a slight slowdown in the last few months. As of December 20, 2022, 106 rental agreements were registered, with 29 new contracts, while the remaining 77 renewals. In May 2023, however, the total number of contracts dropped to 64, including the addition of 23 new contracts and 41 renewals.

While overall rental transactions are showing a declining pattern, the number of renewals to contracts is constant, which indicates an extremely high retention rate for tenants within the community.

Current Properties available for sale

A variety of properties are available for purchase at Arabian Ranches, ranging from an apartment with two bedrooms in Palmera listed for sale at AED 2,650,000 to a six-bedroom house in Hattan listed at AED 11,900,000. Offering a range of pricing, styles and amenities, Arabian Ranches caters to various buyer preferences and budgets.

Conclusion

As a continuously growing housing community that is constantly evolving, Arabian Ranches offers an interesting mix of different types of properties as well as pricing and purchasing alternatives. The market displays the right mixture of mortgage and cash purchases; the preference for mortgages signals a high level of buyer’s confidence in the future worth of homes in the Arabian Ranches.

Suppose you’re a prospective investor looking to buy or an avid real estate investor staying up to date with the latest trends. These insights will help you understand what’s happening in the Arabian Ranches property market.