Arabian Ranches 2 – A Glimpse Into Recent Property Transfers and Trends

Arabian Ranches 2, an illustrious residential community in Dubai, has had an active month with 31 transfers registered at the Dubai Land Department. The spectrum of transactions, differing in property types and prices, provided a deep insight into the community’s diverse residential offerings.

A 5-bedroom Rasha Villa took the spotlight for the highest transfer of the month, selling for AED 8,000,000. On the other end of the spectrum, a 4-bedroom house in Reem was sold for AED 2,342,500, making it the lowest transfer of the period.

The overall average sales price in Arabian Ranches 2 was AED 3,614,435. The average price per sq. ft was recorded at AED 1,101. These figures reiterate the community’s ability to cater to a wide range of budgetary requirements, making it an attractive option for potential buyers.

Loan-to-Value Ratios Across Dubai Communities

The Loan-to-Value (LTV) ratio is a critical metric in the mortgage industry. It measures the mortgage amount against the appraised value of the property. Lenders use this ratio to assess the risk of granting a mortgage loan. A lower LTV indicates a more significant down payment from the borrower, which often translates into a lower risk for the lender.

Below are the average Loan-to-Value (LTV) percentages for various Dubai communities, indicating the typical mortgage borrower’s equity stake in their property.

Arabian Ranches and Arabian Ranches 2

Arabian Ranches and Arabian Ranches 2 have average LTVs of 72% and 75%, respectively. It means that, on average, property owners in these communities have financed roughly three-fourths of their properties’ value with mortgage loans.

Downtown Dubai and Dubai Marina

The average LTV is 75% and 76% in Downtown Dubai and Dubai Marina, respectively. As popular residential and commercial centres, these regions attract a diverse mix of residents and investors. The relatively high LTVs suggest that many buyers in these areas leverage mortgage loans to finance their property purchases.

The Lakes, The Meadows, and The Springs

In the Lakes, the average LTV is 72%, while The Meadows and The Springs have an average LTV of 76%. That indicates a heavy reliance on mortgage financing in these communities as well.

Green Community and Victory Heights

Green Community has the highest average LTV at 81%, suggesting that buyers in this community have the highest mortgage loan proportion concerning their property’s value. Victory Heights, on the other hand, has an average LTV of 75%.

Other Communities

Jumeirah Beach Residences (73%), Jumeirah Golf Estates (77%), Jumeirah Islands (62%), Jumeirah Park (77%), and Palm Jumeirah (76%) all show relatively high LTV percentages, highlighting the significant role of mortgage financing in these communities.

Six-Month Price and Rental Trends in Arabian Ranches 2

Property Prices Over Six Months

The Arabian Ranches 2 community has seen substantial shifts in property prices over the past six months. Beginning at AED 3,923,333 in December 2022, there was a marked rise to AED 4,494,333 in January 2023.

A slight dip occurred in February 2023, with the average price dropping to AED 3,520,455. However, prices quickly rebounded and peaked at AED 4,492,522 in April 2023.

The latest recorded data in May 2023 indicates a slight decrease, with the average price settling at AED 3,614,435. While fluctuations were observed month on month, the overall trend from December 2022 to May 2023 indicates a positive trajectory.

Rental Trends Over Six Months

In terms of rental transactions, the data present a more varied picture. In December 2022, Arabian Ranches 2 saw a total of 46 transactions. That was comprised of 17 new contracts and 29 renewals.

January 2023 experienced a surge in rental transactions, with a total 61 (26 new contracts and 35 renewals). From February to April 2023, the total transactions ranged between 40 and 56, with the number of new contracts nearly equal to renewals.

May 2023 concluded with 44 transactions, split into 20 new contracts and 24 renewals. Although there was a mild decrease in rental transactions compared to the start of the year, the constant rate of renewals demonstrates the sustained demand for rental properties in the community.

Conclusion

The property market in Arabian Ranches 2 continues to thrive, as demonstrated by the number and variety of recent transactions. The upward trend in property prices over the past six months suggests a growing demand for homes in the community. The prevalence of mortgages also hints at the long-term commitment of the residents towards the community.

However, the slightly decreasing trend in rental transactions may warrant a closer examination to understand the market dynamics at play. Despite this, Arabian Ranches 2 retains its appeal due to its diverse property offerings, accommodating a broad spectrum of buyers and tenants, irrespective of their budgetary constraints.