Buyers in Dubai show increased interest in villas

The current trend in the residential market is proof that buyers in Dubai show increased interest in villas

The real estate market in Dubai is witnessing a major shift in buyers’ behavior as a result of the Covid pandemic

Living in confined spaces for longer periods of time, during the lockdown or individual quarantine throughout the pandemic, has proven to be a real predicament. The need to live in larger spaces with access to greenery and more facilities felt intuitive in the first two years of the pandemic. Therefore, the current trend among homebuyers in Dubai only confirms a shift in the interest towards villas and townhouses.

Thus, among the trends that the Dubai real estate market is expected to show in 2022 are:
• Buyers in Dubai show increased interest in villas;
• More end-users buy across the city due to low mortgage rates;
• Average sales prices have increased 11% in the first quarter of 2022, due to premium villa sales.

The current status of the market: low inventory for completed villas and townhouses

However, the market is currently experiencing a shortage of completed villa and townhouses. As an alternative, apartment buildings with more generous spaces and a wider selection of facilities are performing well in 2022 amid a depletion in the villas inventory.

As per the Dubai Statistics Center, the population of Dubai was around 3.5 million residents in April 2022, and is expected to grow to a staggering 5.8 million people by 2040, and the city is ready for this growth. What this translates into is a demand for even more residential developments.

Whether we’re talking about apartments or villas, the city is booming with constant new developments and is ready to accommodate a growing population. A very large number of new apartment buildings, villas, and townhouses are being developed in 2022 and in the coming years, all in line with Sheikh Mohammed bin Rashid’s 2040 Urban Master Plan, which aims at further developing the country.

A change in demand: Apartments vs villas

Villa stock in prime Dubai areas is limited and 2022 will see only a 3.6 percent of planned deliveries in prime submarkets, keeping prices at the higher end.

Over 10,000 new townhouses and villas have been launched in May 2022 by large developers but handover for these developments is not expected until between the end of 2024 and 2025.

Of the villas being developed, 30 percent of them are in luxury communities that have golf courses, like Dubai South, Dubai Hills and Arabian Ranches 3, and only 5 percent are being developed in prime market locations, which will help prices in those areas stay strong.

Now that you know and understand what are the current trends in the real estate market in Dubai, it is much easier to make a decision. We, at Arabian Sunrise Properties, make it our job to assist you in finding the home of your dreams.

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