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New homes on horizon at Dubai’s Arabian Ranches

Zawya- June 21, 2017

A fresh supply of homes at Arabian Ranches, one of Dubai’s older freehold communities, are to be handed over in 2019.

Joining the existing two sub-communities — Casa and Palma — the new inventory will spread across four new ones — known as Lila, Rasha, Rosa and Yasmin — and feature 601 villas, according to the property consultancy Cavendish Maxwell.

“The current sales prices in Casa range from Dh3.05 million for a three-bedroom, up to Dh4.5 million for a five-bedroom,” the firm reports based on its Property Monitor database. “In Palma, sales prices range from Dh3.2 million for a three-bedroom (and) up to Dh4.8 million for a five-bedroom.” (The Property Monitor Index for a three-bedroom in Arabian Ranches II — which encompasses the new cluster — is Dh983 per square foot.) “These prices are comparable to neighbouring Arabian Ranches (the original community),” the report adds. “However, sales prices in the original Arabian Ranches have seen a decrease of 1.2 per cent this year.”

Currently, homes at Arabian Ranches II average Dh175,000 in rentals, while at the original location they average Dh152,000 (after declining by more than 5 per cent this year, partially due to the amount of comparable new stock available in the surrounding area with Mudon, Damac Hills and Mira).According to Property Monitor, the current gross investment yield for Arabian Ranches II is 5.37 per cent. “With significant new supply entering the market over the next two years, there is expected to be pressure on prices, this limiting the capital appreciation potential in the area for the short-term,” it adds.