The Shift Towards Self Contained Communities In Dubai Real Estate

In Dubai, self-contained communities are reshaping how people live by creating residential areas that have everything residents need in one large, well-planned area. These integrated developments consist of residences, schools, shopping areas, hospitals, parks and entertainment options, making it unnecessary to travel long distances for work or other activities. Additionally, the integrated community concept promotes convenience, greater interaction among community members, and better overall quality of life thus, it enhances the attractiveness of a Dubai properties and increases its value.

Rather than being seen as the best option to fill the gaps between the city center and less desirable areas of the city, master-planned districts are now seen as ideal locations by families and professionals alike for creating balance and easy access to amenities.

Integrated Living as a Contemporary Lifestyle Option

The transformation of Dubai real estate illustrates a larger trend towards integrated living as an option for all residents. Residents are placing greater importance on their ability to live in walkable environments with ample access to green space and all the daily necessities of life versus that of being close to business districts. As a result, developers have begun creating mixed-use spaces that accommodate a live-work-play lifestyle.

Some of the primary elements driving this demand are:

• Close proximity to on-site schools, medical clinics, and grocery stores
• Community parks and fitness centers
• Retail boulevards and dining areas
• Internal roadways and pedestrian pathways

This combination of features enables communities to operate independently while also connecting them to the larger metropolitan area.

Why Investors are Interested in Community Development

Investors see self-sufficient communities as having a distinct advantage. As stability has become the primary factor in property investment in Dubai, the integrated nature of these developments creates a consistent demand from both buyers and renters. 

Benefits to investors include:

• A larger pool of tenants to target, such as families and long-term tenants
• Reduced risk of vacancy from the lifestyle marketability of an area
• A continuing demand regardless of the ups and downs of the rest of the market

Jumeirah Village Circle (JVC), Dubai South, Mirdif, Town Square and Arabian Ranches are three examples of these types of developments having schools, health care facilities, retail and recreational activities located within the boundaries of the community.

How Master Planned Community is Changing the Market

The volume of transactions taking place within the Dubai real estate market continues to gain momentum within suburban areas as well as developed areas of master planned communities. Master planned communities that are designed with a focus on convenience and access continue to lead in the amount of absorption being achieved, even during the ongoing price revision currently taking place throughout the market.

The trend towards master planned developments represents a fundamental shift in buyers' goals and objectives:

• The importance of space and convenience to a buyer has overtaken the desire to live in an area that has a large concentration of other people.
• The importance of the long-term livability of an area has overtaken the need to purchase property in a highly visually appealing area over the short term.
• The quality of infrastructure will become increasingly more important to buyers when choosing where to invest.

Long-term Value Through Integrated Urban Planning

The real estate investment in Dubai benefits from government-supported planning, urban expansion (population growth) and infrastructure development via government investment. Integrated Urban Living (IUL) Communities reflect these principles and provide the opportunity for resilience and enhancement (scale) in the future.

• Promote Sustainable Urban Growth
• Decrease Operating Costs Through Shared Infrastructure
• Increase Potential Resale Value as the Community Matures

Integrated Communities reduce an investor's risk of losing value through Market Fluctuations.

Evolving Buying Trends in Residential Communities

Increased demand by buyers for properties for sale in Dubai has resulted in a much greater emphasis on Communities that provide users with convenience within a walkable distance from their home. Homeowners are focused on safety, availability of schools, and green spaces in a community while investors focus on leasing and resale values easier.

Homes within self-contained developments often benefit from:

• Quicker Resale Timeframes
• Higher Occupancy Ratios
• More Well-Maintained Community Assets

All of these characteristics attribute to the Long-Term Preservation of an asset's value.

Upscale Living Set in Mixed Use Developments

Luxury penthouses for rent in Dubai can be found within mixed use districts and are being purchased by many high net worth individuals (HNWIs). Most HNWIs will look for valuable fixtures and finishes but also want access to dining, wellness and entertainment within their own community.

The melding of luxury environments and convenience enhances the demand for those who are looking for a luxurious lifestyle in a city's premium segment.

Rent Stability in Community-Based Developments

From Dubai real estate investment perspective, community based developments provide better stability than diverse single-use developments as tenants prefer longer lease terms due to the convenience associated with community based developments. Communities with retail, schools and other leisure amenities nearby have higher occupancy than properties located in distant locations.

The Future of Community Living Within Dubai

The growth of self contained communities is representative of the redefinition of urban living within Dubai and signifies that as new Integrated environments become established within Dubai’s future real estate landscape that they will ultimately influence rental values, demand, and long term value across all areas.