Where to Buy Dubai Waterfront Property

The entire market is fixated and talking about Palm Jabel Ali at the moment. Who wouldn't want to own or live there? We have seen what the outcome has been for investors who've owned waterfront properties which is starting connecting from all the way from Maritime City, Port Rashid Yachts and Marina and now Dubai Islands. Hi, I'm GG Benitez, a certified international property specialist and a licensed realtor connecting global real estate investors with the prime opportunities in Dubai real estate. And today we are going to talk about the incredible Dubai waterfront locations. So they're shaping not just Dubai's real estate market, but global real estate market. So today we're going to talk about those beautiful iconic Dubai waterfront locations. And of course it wouldn't be the same for me to just sit here and chitchat with you. I have to have my colleague and partner Ahmed who's been doing real estate in Dubai for 20 years. You were here before they even did Palm Jumeirah, right? Or were you there when they were starting it? No. Because didn't you sell Palm Jumeirah? Exactly. So of course, everybody when they think of Dubai Ahmed, they think of Palm Jumeirah and the marina. But as we are at the beginning of 2025 and we know that NightFrank has actually shown in numbers in statistics that globally waterfront locations demand 40 to 50% more premium significantly more rental returns as well and that's even more so in Dubai mainly because I think Dubai is more of a luxury real estate market and because of how rare waterfront is. So what are your thoughts on waterfront and the ones that are upcoming? Wow, GG, we've been and we have visited so many of the projects currently in Dubai that are built by the coastline. And when you do visit, who wouldn't want to own or live there? I mean, if you're looking for a piece of mind, that's exactly where you would consider investing your money in. The entire market is fixated and talking about Palm Jabel Ali at the moment but you and I know it's not for everyone because of the entry price. Not that it's expensive per square foot. Surprisingly it is extremely cheap and is going head-to-head with other coastlines. It's just that right now Palm Jabel Ali has launched first its villa phases which is starting anywhere from 18 million and above. Of course to clarify and we know that Palm Jabel Ali just to give a little refresher and we have a whole other podcast we've done it's twice the size of Palm Jumeirah they've learned from their lessons about Palm Jumeirah as far as traffic which people probably don't get it until they come here about how traffic is with the three entry points they have more private beach access less units and villas on the island itself and the breaks so to add for more circulation and it's by Emaar right so is one of the master developers government semi-government backed right so just to kind of give a brief about Palm Jabel Ali in case someone hasn't been on our podcast. Exactly and if you look at history it all started from there it started from Dubai Marina then it started moving towards Palm Jumeirah. Then it started moving towards Jumeirah Beach Residences which is across from Blue Waters. Exactly. Across from Blue Waters and then slowly started moving down the coastline towards the Bulgari and La Mer and the list goes on. And if you look at the patterns, put those patterns together, if you've been in the market long enough as I am, I'm considered a dinosaur right now. We have seen what the outcome has been for investors who've owned waterfront properties and the return has been phenomenal. I mean a quick figure for Palm Jumeirah for example we've seen it appreciate over 500%. Imagine every waterfront property in Dubai for example during especially with the branded projects such as Emaar or Nakheel or even Damac their properties have appreciated over 100% during handover and one such project for Emaar was Emaar beachfront which was launched at anywhere I believe starting with 1,700 AED per square foot. Today they are selling anywhere starting from 3500 all the way up to 5,000 AED per square foot. So when people say that have we lost our opportunity investing in waterfront projects. No, you have not because you still have the opportunity with the urban locations which are the future in Dubai which is in Business Bay and Deira which is now the coastline the upcoming coastline I should say which is starting connecting from all the way from Maritime City Port Rashid Yachts and Marina and now Dubai Islands which is also by as a master developer three major master planners you have Damac you have Emaar and you have where the prices are starting at anywhere starting from 2,300 all the way up to 3,000. So yes, we have not reached there yet for people to say "Oh, I've lost my opportunity. It will not make any sense for me to invest in this upcoming coastline." So Ahmed, obviously you lived in San Diego. I'm from San Diego. You cannot get a waterfront property for anywhere near what the prices are right now per square foot, let's say in Port Rashid Marina or in Maritime. And so yes, of course, it's still a great time. For half a million US a one-bedroom, impossible. You would get it in La Jolla Cove or in Coronado, for example. In all of our episodes, we talk about the rental returns and no property taxes. The other thing is how rare it is to get waterfront. Dubai is only so big, right? And I'll show a map so that people can understand what the coastline looks like. But there's only so much coastline they can do unless they are building an island which takes a man-made beach, right? So what do we have right now? The five that I wanted to really touch upon because we know that for the next year at least, if not two, three years, they're going to be significant launches. I mean 3, four, five years, right? In these waterfront locations. We know that price per square foot still a great time to buy. We know that the rental returns are according to NightFrank and numbers and statistics that you can, the numbers don't lie, provide 20 30 40% greater rental returns. Of course it depends how much your capital injection was into that. We know that capital appreciation 40 50 60% greater if not more for waterfront but the five to talk about. Okay. So we touched upon Palm Jabel Ali and you and I have gone into the showroom. We've done a tour there. We've done a podcast on to talk about Nakheel's all their waterfront properties and then we'll go into what I like to say the trio which is what you just said right next to Deira which is Maritime doesn't have that much left. Correct. How many do we even know? Maybe two, three more of the frontline high-rise that's unobstructed which is almost now we're reaching the tip of Maritime. So with Omniyat taking over the entire community. So yes, I wouldn't put a number on it because they keep surprising us. We thought that there were a couple that were the last. So Omniyat will definitely keep on coming with whatever remaining plots are left towards the tip of Maritime. Then you have an entire community by Emaar itself which is Port Rashid Yachts and Marina and then you finally have your Dubai Islands which consist of five islands. Now in our previous podcast I did make a point that for the next upcoming years not a year or two years we will be focusing on this coastline itself. Yes, Maritime is almost pretty much done. Now, Port Rashid Yachts and Marina has another entire cluster which you will see a lot of launches coming within the next following 2 to 3 years. And please keep in mind that when you're purchasing Emaar property, the strategy is very important. And we cannot express this enough and I know we touch upon it as much as we can and I've done compilation videos, but with Emaar specifically because Emaar is the largest developer in the UAE actually I believe in the world after China. Yes. Right. So the largest developer and Emaar is like when you come into the airport in Dubai, you see it everywhere. It's got that brand recognition. They have the history with the Burj Khalifa Dubai Mall and some of the most successful highest capital appreciation people have doubled their money upon handover with Emaar. So you have global investors that are already saying whatever those launches are I want it sight unseen. Exactly. So that's what you're competing with which is why it's important to do an EOI an expression of interest. We've discussed that many times. But Ahmed I have another question for you that comes up. Is the profit margin for our investors important in terms of strategy to secure a seafacing unit in these seafacing projects or seafront projects? That's a great question GG because as you know this has been a challenge for us in 2024 with the newcomers especially from the US who've never been to Dubai. They've been coming with that US mentality that if it's not facing the ocean it is not worth it. That's not the case in Dubai and I will tell you why. In Dubai due to the high demand coming from all over the world, we are limited when it comes to supply on the day of the launch. So you have 20,000 brokers again who are and many more who are unlicensed who are all fighting for that 250 units that have been launched. Unfortunately, or maybe I should say fortunately, Port Rashid Yachts and Marina are not high-rise building. Okay? So you do not have the option or the choice of an inventory of 250,000 units. Extremely limited, anywhere from 120 to 150 units. If you are an end user, okay, I could totally understand why you would have a preference of having a sea view. Anyone would want to wake up every morning to face the ocean and have that view. Okay. But the mistake that majority of our investors have been making is that they're making an emotional decision rather than an investment decision. And why that is there's a price tag, a very hefty price tag when it comes to choosing and specifically picking a seafacing unit. And if I have to give you numbers, you're looking at paying 35% more for just a seafacing unit. Okay? Now, would that justify your rental return even if you're looking at long-term or Airbnb? It does not because you'll be shocked if I tell you the difference margin that you're looking at of gaining is only 15% more. Okay. Now, what about capital appreciation though? Now, capital appreciation is a different story. If you're looking into, for example, saying, well, I want to maximize on my capital appreciation. Capital appreciation I've seen the difference would be is around 30% more. So for example, if it's a seafacing, say you're going to get around 50%. On a seafacing, you'll gain around anywhere 70 to 80% more. Okay? But you and I, we know that majority of the investors tapping in today's market are long-term investors who are also seeking that 10 year Golden Visa. So they are looking into that rental return. So if you're focusing on rental return and if you're insisting to pay that 35% extra premium for a seafacing unit, do you know how many years it will take you to cover that additional 15% that you get on your rental ROI? It will take you 10 years to recover that extra premium you've just made. That's a great perspective. Exactly. It makes no sense to you. It makes no sense as an investor. So thank you for sharing that. And now I actually want to go a little bit more now into Emaar's Port Rashid Yachts and Marina because you were talking about luckily or not luckily it's not a high-rise. It is a low-rise community but what our viewers need to understand is that Emaar is a master developer. So for example unlike Maritime where Maritime has many different developers and I love Maritime. It has its own unique value. Reminds me of South Beach. You have these high-rises can't compare to Port Rashid Yachts and Marina completely different but it is connected to Port Rashid Yachts and Marina by Emaar and what is doing with Port Rashid Yachts and Marina is creating a destination even for the locals to come with luxury restaurants and yacht clubs yacht club and all the fine outlets that have already started building over there. So like you said they, that's why they are such an expert in building master communities. So when which brings footfall by the way, just to make it clear, they're bringing in footfall to create businesses over there to bring in more tourists over there to come and see what's happening in this community. So it's not just like a community is being built for the residents at itself like Maritime will be. Maritime will be very exclusive for the residents. Correct. Exactly my point. This is not just for the residents. So when you are investing in Port Rashid Yachts and Marina, it's not just for that unit that you're buying. Whereas in Maritime it is more important that I do believe that it is more important what your view would be in Maritime City. Agreed. Okay. Especially if you're in the front line, right? Yes. And that's how we have helped advise our many investors who have invested in Maritime. And actually there is a launch coming up by Beyond and Beyond is owned by the same company as Omniyat. So that's one of the last I mean we keep being told that one of the last where the prices I believe are starting anywhere from 2,500 all the way up to 3,000 based on once again the view and the high level. So I want to segue into another waterfront community that we haven't discussed yet but is still quite exciting. Yes, Dubai's new downtown also by Dubai Creek Harbor. Yes. So Dubai Creek Harbor has some launches coming up and it's the same thing. The main focus now will be towards the center of Creek Harbor where you will have one of the now the tallest towers that will be there. Actually, let's go into that a little bit more though. Dubai Creek. Okay, downtown. We know where the Burj Khalifa is where the fountain is, where the Dubai Mall is. I love walking into downtown, but is there any more land to build a new project in downtown at this point? Finished. We're done. That's it. And it's dense, right? It's dense, of course. So now you have easily connected what is it 10 minutes to Dubai Creek Harbor. And then Dubai Creek Harbor for me, I've talked about this in previous episodes, is that you feel a little bit far, like far away from the hustle and bustle of Dubai. You have these incredible, beautiful, iconic skyline views of downtown Dubai. Yes. You have the boats that are right there in front on the water. You have the metro that's going to be connecting you to that whole area. It's easy to drive, but this is going to be the new downtown, meaning this is going to be a destination also in and of itself. It's going to have its own landmarks, its own draw for visitors and appeal. Correct. And it's an Emaar master community. Emaar, we know does things right. Correct. So this is another one of those five areas, waterfront areas that are really shaping Dubai's entire global future and it's something to look out for because we know that there will be launches throughout 2025. Correct. And although the prices will be stabilizing, we know that Emaar is not planning on doing such a high spike. Yes. I love what Mr. Alabbar had to say. Don't kill the golden goose. So yes, the prices will be stabilizing now because we need that new set of wave of new investors who've been sitting on the sideline and saying I think we missed the opportunity. It's too expensive. So yes, we need those investors in which was a very wise move because everyone will follow his lead which they always have. So yes, and that also falls into once again the urban master plan because where do you think the next upcoming 6 million people that will be moving to Dubai are going to live? So we want to shift them in these different urban locations that we've been emphasizing on and building this entire infrastructure for the next upcoming until 2040. How are we going to manage and control a population of 7 million additional if we don't have the proper infrastructure? And that's one of the reasons when we drove to Dubai Islands, you've seen what has and is been taking place in Dubai Islands when it comes to infrastructure because that's where the vision is to expand beyond the old Dubai, the Deira and the broader Dubai by starting to move and migrate people in those locations. And that is one of the reasons in our last podcast we said Dubai Islands for the next 3 4 years we will be launching and selling stuff over there. So do you honestly think it's too late for you to invest in Dubai Islands? Definitely not. It is just starting. You have one of the major developers at the private boutique developers. Actually I should say two right now. One of them is of course recently Ellington launched this beachfront project sold out both phases on launch day. We weren't even on the launch. Well actually before launch day you have another newcomer in the market by the name of MTI who's done wonders in that area because he is going full-fledged with his construction to meet the timing as far as delivering his projects. What are the prices? Once again, you're paying anywhere from 2,300 to 2,500 per square foot. And this is just the beginning. So before we touch 4,000 5,000 AED per square foot, which we will initially in stages, it's not too late. This is the time for you to invest when there's barely anything over there because once that infrastructure, all those retails, the commercial shops, the malls, the resorts start falling in place, my friend, you will not see 2,300 AED per square foot prices because Dubai Island started off selling at 1,800 AED per square foot. The lands that were sold over there when they first launched to private developers was selling at 150 AED per square foot went all the way up to 200 per square foot. Today I'm hearing that people are demanding 500 AED per square foot for their lands. So guess what? If the price of land keeps going higher, do you honestly think that these developers will continue on leaving their prices stagnant at 2,500, at 3,000 AED per square foot? Of course not. So yes, it's never too late to invest, especially in this upcoming coastline. I will refer to another video where I did an analysis and and you started to at the beginning of this episode of looking at the history of numbers of all of the waterfront properties like you said La Mer and Blue Waters and Palm Jumeirah just to see the history. We know the trend. We know that the population expansion. We'll get into more of the urban and the master 2040 plan. And I've also you and I have done a tour of Dubai Islands, correct? But for those who maybe didn't have a chance to watch it, and I'll link it as well, is just to talk about Dubai Islands a little bit more for a moment. We were talking about that trio of Maritime that connects to Port Rashid Marina and then there's the Infinity Bridge, right, that we actually drove on that connects to Dubai Islands, which is a huge part of the master 2040 plan of increasing coastline in Dubai, increasing resorts and hotels, increasing greenery. They have the golf. But keep in mind for those who don't understand the majority of the people live on that side of Dubai. Yes. And then the majority of people work in Business Bay. Correct. In DIC in downtown which is going to be connected very simply and easily that 15 minutes away. Correct. So imagine all these people that are, let's say, working in DIC, working in downtown who want to live themselves in a master community in a beautiful waterfront area. And each island has its own dedication of what it is. Correct. Dubai Islands is going to draw a lot of those residents. It will also be for tourism, of course, but it's going to be drawing a lot of the people that want to live in that type of a community. So yes. So between these we have again Palm Jabel Ali, we have Port Rashid Marina, Maritime City, Dubai Islands, Dubai Creek Harbor. These are really solid waterfront communities that are shaping Dubai's real estate future, global real estate future. Great opportunities to get into these underdeveloped areas. Correct. Now, while you can to be able to capitalize on the capital appreciation opportunities, but also the rental returns in a city that is growing exponentially, hit 3.8 million last year, is going to double by the year 2040, is drawing people to come work, live here, businesses, foreign income deposits as well. Foreign deposits, sorry. And we know that waterfront communities gain greater appreciation and rental returns. Yes. So with that I will unless you have anything else to add. Well let's emphasize one last time to our investors because it has been a challenge for you and I 2024 not to focus only on seafacing unit. Do not lose the opportunity of owning and being a part of that community because that what counts at the end of the day. So try not to fight and lose the opportunity because you think that owning a seafacing unit is the only way you're going to build either capital appreciation or a high rental ROI. Well, I love that you brought the numbers with you to even share the stats on that from an investor standpoint. Of course, if it's an end user and they're wanting to move here, live here, we understand personal preference, but if it's from an investment strategy, do not make an emotional decision. There you go. Yes. So thank you, Ahmed, yet again. Hopefully this was another informative episode. And with that, please make sure to like, subscribe, follow The Dubai Connect podcast, subscribe to the GG Benitez International YouTube channel, and stay tuned for the next episode.