Covering an area of around 800 hectares, International City makes one of the most popular and affordable communities for lower middle class earning livelihood in Dubai. Launched in 2002, this community offers six themed districts featuring studio and one bedroom apartments which make perfect living spot for singles or bachelors working in Dubai.
International City, strategically located in Al Warsan region opposite to Dubai central fruit and vegetable market, has the capacity to accommodate around 60,000 residents. Residential District in International City consists of 387 buildings and covers an area of around 300 hectares whereas Central District consists of 34 plots covering an area of around 21 hectares. Since the launch of International City, it is considered to be a low rise ‘city with in a city’ offering low cost housing solutions to budget constraint residents in Dubai.
The worst crises that hit Dubai real estate back in 2008 left evident blots on performance of property in International City. It remained one of those areas where property prices kept on falling when Dubai property in rest of the areas showed remarkable recovery. At that time, survey reports disclosed people show aversion to International City due to lack of proper entry and exit gateways, foul smell, parking issues and other small infrastructural issues.
During 2011 in October, it was reported that average sale price of apartments in International City dropped significantly by over 30% below its launch price. Moreover, it was predicted that too much supply entering in the community in next 12 months will put further pressure on rents and prevent to show any significant recovery. The year 2012 though began with much positive note for Dubai real estate sector but it was thought that properties in low-end areas like International City still need a lot of time to get back on recovery track.
The prediction turned out to be quite right for first half of 2012 when property prices in International City either showed decline or maintained their steady trend. The results of Q3 have astonished real estate experts because property price in International City showed remarkable performance during the quarter. Asking prices, which dropped below their launch price, have increased by over 40% in just one year for apartments in International City. One year ago asking price of a studio ranged between Dh150,000 and Dh170,000 but now the same apartment has an asking price ranging between Dh250,000 and Dh270,000.
Property in Spain and England Cluster now have highest asking rents in International City but some units are still selling at low prices due to poor quality of their condition and instant requirement of renovation. So far 1730 transactions in both Central and Residential District of International City have been recorded by Dubai Land Department. The remarkable increase of property price in International City indicates that finally real estate in the community has gotten back on its recovery track. It also reflects the increased sentiment of Dubai real estate market and better times ahead for it in near future.