The Magnetic Appeal of Waterfront Properties

REM TIMES takes a look at the evolving waterfront property market of Dubai and speaks to experts on what makes it so alluring

Known for its strategic location across the Gulf, contemporary skyline and opulent living standards, Dubai is home to some of the most remarkable waterfront properties crafted by world-class developers. Offering breathtaking vistas and top-notch amenities, these properties not only attract homebuyers looking for opulence and convenience but also elite investors eyeing high-yield investment.

REM TIMES takes a look at the factors shaping the waterfront property market of Dubai and finds out why it is emerging as a masterstroke investment in the real estate landscape of the emirate.

An Elusive Aura

The slightly elusive aura of a waterfront property makes it highly desirable among buyers and investors, feels Hamed Ghelichkhan, CEO & Founder, Homeland Realty Real Estate, a prominent UAE-based developer. “Their scarcity creates an aura of exclusivity and desirability. Furthermore, prime locations, stunning views, and luxurious living make them a sound investment with good potential for appreciation. The ability to generate income through high rental yields, either from long-term tenants or lucrative short-term tourist rentals, adds to their appeal,” he notes.

Whether it’s exclusive beachfront villas, high-rise penthouses with a bird’s eye view of the bay or seaside apartments with luxurious amenities, the market is fertile with plenty of options catering to a variety of budgets. “Some investors are even choosing to buy units at waterfront hotels, resorts, and serviced apartments that cater to global tourists and business travellers. Iconic attractions like Palm Jumeirah and Dubai Marina are the top destinations for investors, while Palm Jebel Ali is seeing growing interest,” points out Céline Haidamous, Digital Sales Manager of real estate platform PropertyGuru.ae.

“A trend that is noteworthy is that most in-land villa communities nowadays offer lagoons, and there is a growing trend among developers for every apartment in a project to have a private pool,” adds Peter Smithson, Sales Director of boutique real estate agency Belleview.

A Risky Affair?

Assets and liabilities are key components of any investment and a waterside paradise too comes with its fair share of risks. “Waterfront locations are more susceptible to hurricanes, floods, and coastal erosion. Investors must therefore inquire with developers on steps being taken to mitigate any such risks. Developers must do their part and adopt sustainable construction practices, incorporating features like elevated foundations and using materials that can withstand harsh conditions. Dubai's regulatory bodies play a crucial role here, ensuring that developers adhere to strict building codes and utilise resilient materials,” says Karina Meirmanova, Head of Real Estate Platform – Huspy.

“The legal landscape surrounding waterfront development can also be complex. Zoning laws and regulations specific to waterfront areas exist, and navigating them can be tricky. Developers must work closely with experienced professionals well-versed in these regulations to ensure projects comply with environmental and construction codes. And finally, partnering with a knowledgeable insurance broker to secure adequate insurance is paramount,” she adds.

Smithson advises investors to be wary of purchasing in a location lacking tangible value. “As always the location will ultimately derive the value so, while I would advise investors to be wary of purchasing in a location lacking tangible value, the truth remains that most truly waterfront properties occupy prime residential spaces offering tremendous residual value,” he suggests. 

The Winning Streak

The combination of luxury, exclusivity, investment potential, rental income, and proximity to vibrant tourist hubs makes Dubai's waterfront properties a prized possession in the city's dynamic real estate market.

Hamed Ghelichkhan, CEO & Founder, Homeland Realty Real Estate

However, despite the many risks surrounding it, the waterfront property market of Dubai offers abundant growth opportunities fuelled by innovation, luxury, and sustainability, according to industry experts. Investors and home buyers can work with experienced real estate agents, legal advisors, and environmental consultants to address regulatory complexities and environmental risks effectively and navigate the market with confidence and success.

Moreover, the high occupancy rates and the steady capital appreciation of these developments despite the ups and downs of the market make them a win-win affair. “In short, the combination of luxury, exclusivity, investment potential, rental income, and proximity to vibrant tourist hubs makes Dubai's waterfront properties a prized possession in the city's dynamic real estate market,” concludes Ghelichkhan.