Why Dubai’s International City is a Hotspot for Property Enthusiasts Near Dragon Mart

Introduction: International City – Dubai’s Hidden Gem

Hello, friends! I’m a real estate specialist in Dubai, and today I want to tell you about one of the most underrated areas of this amazing city – International City. Do you know why I call it a hidden gem? Because many investors, chasing the glitter of skyscrapers in the center, overlook the enormous potential of this area. And that’s a mistake!

International City is not just another residential area. It’s a real melting pot of cultures, a place where East meets West, and traditions coexist with innovations. And you know what? It’s an excellent place for real estate investment. Especially if you’re looking at the area near Dragon Mart – the largest Chinese trading center outside China.

But let’s not just take my word for it. I propose we explore together why International City is becoming a real magnet for investors and property enthusiasts.

Investment Potential of International City: Numbers and Facts

Let’s start with the main thing – the numbers. Over the past 5 years, property prices in International City have increased by an average of 20%. This might not seem as impressive as the growth in some central areas, but don’t jump to conclusions. Let’s dig deeper.

1. The average rental yield in International City is 7-9% per annum. This is higher than in many “prestigious” areas of Dubai, where yields often don’t exceed 5-6%.
2. The occupancy rate of rental housing in the area stays at 90-95% all year round. This means stable income for investors.
3. The cost of real estate in International City is significantly lower than in the city center, making market entry more accessible for novice investors.

Now let’s look at specific prices:

• Studios: from 250,000 to 350,000 dirhams
• 1-bedroom apartments: from 350,000 to 500,000 dirhams
• 2-bedroom apartments: from 500,000 to 800,000 dirhams

Seems inexpensive by Dubai standards, right? But therein lies the opportunity. Low entry price + high yield = excellent potential for investment growth.

Dragon Mart: A Magnet for Investors and Tenants

Now let’s talk about the main attraction of the area – Dragon Mart. This is not just a shopping center. It’s a real city within a city, occupying an area of more than 1.2 million square feet. And you know what? It has a huge impact on the International City real estate market.

Here are a few facts about Dragon Mart that will make you think:

1. Dragon Mart is visited by about 120,000 people daily. This creates a constant flow of potential tenants for nearby properties.
2. Dragon Mart has more than 5000 retail outlets. Many owners and employees prefer to live nearby, which increases the demand for rental housing in International City.
3. Dragon Mart is constantly expanding. Dragon Mart 2 was opened in 2015, and work is now underway on Dragon Mart 3. This means that the area will continue to develop and attract more and more people.

How does this affect real estate? Very simply:

• Apartments located within walking distance of Dragon Mart are rented out 10-15% more expensive than similar apartments in other parts of International City.
• Commercial real estate near Dragon Mart (offices, small shops) shows steady value growth – about 5-7% per year.

Pros and Cons of Buying Property in the Dragon Mart Area

Like any investment decision, buying property in the Dragon Mart area has its advantages and disadvantages. Let’s look at them in more detail.

Pros:

1. High rental yield. As I mentioned earlier, the average yield here is 7-9% per annum, which is higher than the Dubai average.
2. Low entry price. You can start investing in Dubai real estate from 250,000 dirhams. This makes the area attractive for novice investors.
3. Stable rental demand. Thanks to the proximity to Dragon Mart and other commercial facilities, the demand for rental housing here is always high.
4. Growth potential. The area is constantly developing, which could lead to an increase in property prices in the future.
5. Multicultural environment. If you plan to rent out housing, the diversity of potential tenants here is very large.

Cons:

1. Building density. International City is an area with a high population density, which may not suit everyone’s taste.
2. Traffic congestion. Traffic jams can form during peak hours, especially in the Dragon Mart area.
3. Limited choice of luxury real estate. If you’re looking for luxury apartments or villas, the choice here will be limited.
4. Reputation as a “budget” area. Although this is more of a stereotype, it can affect the perception of your investment’s value.

The Future of International City: Development Plans and Prospects

Now let’s look into the future. What awaits International City in the coming years? And how can this affect your investments?

1. Dragon Mart Expansion As I mentioned, work is underway on Dragon Mart 3. This is not just an expansion of the shopping center. It’s a comprehensive project that includes:
   • New retail space (over 500,000 sq. ft.)
   • A 250-room hotel
   • A multi-screen cinema
   • Entertainment zone
2. This project is expected to be completed by 2025 and will attract even more visitors to the area.
3. Infrastructure Improvement The Dubai government has announced plans to improve transport infrastructure in the area. This includes:
   • Expansion of main roads
   • Construction of new interchanges
   • Improvement of public transport
4. These changes should solve the traffic problem and make the area even more attractive for living and working.
5. Green Zones As part of the “Green Dubai” initiative, new parks and green areas are planned in International City. This will not only improve the ecology of the area but also increase the quality of life for local residents.
6. New Residential Complexes Several major developers have announced plans to build new residential complexes in International City. These will be middle and high-class projects, which could lead to an increase in the overall level of property prices in the area.

How does this affect investment prospects?

• It is expected that by 2027, property prices in International City may increase by 25-30%.
• Rental yields are likely to remain high (7-9%) or even increase due to growing demand.
• The emergence of new high-quality projects could change the perception of the area and attract more affluent buyers and tenants.

Practical Advice for Investors

If you decide to invest in International City real estate, here are some practical tips:

1. Choose apartments with a view of Dragon Mart or future green areas. Such properties will be in high demand.
2. Pay attention to new projects. Although they may be more expensive, they often offer better conditions and have greater potential for value growth.
3. Don’t neglect studios. They are in high demand among tenants and often bring the highest yield.
4. Consider buying commercial real estate, especially if you plan long-term investments.
5. Keep an eye on news about the area’s development. This will help you make more informed investment decisions.

Conclusion: Is It Worth Investing in International City?

So, we have considered all aspects of investing in International City real estate. Let’s summarize:

Advantages:

1. High rental yield
2. Low market entry price
3. Stable rental demand
4. Area development prospects
5. Proximity to a major shopping and business center (Dragon Mart)

Disadvantages:

1. High building density
2. Current transport problems (which, however, are planned to be solved)
3. Limited choice of luxury real estate

My opinion as a specialist? Yes, investing in International City real estate in 2024 is definitely worth it. Especially if you are:

• A novice investor with a limited budget
• Looking for high rental yields
• Ready for long-term investments (5-10 years)

Remember: every investment involves risks. But in the case of International City, in my opinion, the potential benefits significantly outweigh the possible risks.

International City is not just an area of Dubai. It’s a place where traditions meet innovations, where East and West merge in a unique mix of cultures and opportunities. And who knows, maybe your investment will become part of this exciting development story.

Invest wisely, friends! And perhaps soon we’ll meet in one of the cozy cafes of International City, discussing your next investment project.