Villas & townhouses are the hot properties types in Dubai and there are lots of factors that works behind this rising demand. Read this blog if you want to know more about these factors and supporting data.
In Dubai real estate where housing options are vast still, most home seekers & investors prefer villas & townhouses and we have a huge amount of Data & figures to validate this fact. But first of all, we want to make you clear about the difference between Villas & Townhouses. One of the biggest differences between a villa and a townhouse is mainly their look. Townhouses share common walls with another unit and are generally smaller in sizes, not more than 3 & 4 Bedroom. On the other hand, a villa seems like an independent standalone unit with private amenities & features.
The property market of Dubai has started the current year on a high note. The first quarter of 2022 has produced record-breaking numbers of 17, 896 sales transactions (81% more QoQ) which convert into AED 42,856,090,253 (125% more QoQ) in value, concluding the best first quarter ever in the Dubai property market.
Many reputed real estate developers in Dubai such as Damac Properties, Emaar Properties and Sobha Realty have introduced the best offers & payment plans to attract potential home buyers & real estate investors. These offers & payment plans are Dubai Land Department registration fee waivers, different types of favorable payment plans for the buyers and continuously increasing sales. Very hopefully property developers in this region will continue to present these types of offers & schemes to attract home buyers.
According to real estate investment experts, a big portion of the overall property sales in Dubai is covered by off-plan property.
As well, waterfront communities from globally reputed builders are arousing particular interest among both buyers and investors. One more reason which we would like to mention here as a residential property demand booster is the freelance visa. By acquiring a freelance visa you can live in UAE as a self-employed person and you can also sponsor your children, life partner, and parents.
According to real estate investment experts in Dubai, the growth rate of property value is estimated to be more than 2% in 2022. At present, numerous residential properties are under development and will be ready to move on shortly. This trend of development of new properties in Dubai will continue in the coming years.
The boost in Dubai's real estate market was channeled by high liquidity, affordable interest rates, and relocation to the United Arab Emirates. During the last couple of years, Dubai has seen more ex-pats shift to its peripheries for different reasons, a tax-friendly system, and a business-friendly environment. At the same time, other countries have limited access to non-residents; Dubai unlocked its gates and welcomed home seekers, investors, and businesses from all over the world.
All these initiatives and more created momentum in home seekers’ decisions. In the face of opposite circumstances created by price rises, pandemics, and a huge rise in interest rates, Dubai’s property market observed a strong growth. In Dubai, enthusiasm and home seekers’ confidence remained strong, mainly in the middle of the elite class.
If we talk about the off-plan property for sale in Dubai, a positive trend has been seen in Q1 2022 with an increase of 16% in comparison to Q1 2021. New property for sale in Dubai attracted both locals and non-residents, here non-residents buyers mostly preferred villas & townhouses within secured gated communities. This category of buyers is eager to pay the premium amount as a high return is inevitable from re-selling & renting villas & townhouses. According to the Data of Off-plan sales transactions there were only 580 transactions in townhouses were recorded in Q1 2021 and in the same time frame of 2022 Dubai real estate have recorded 1781 transactions, this is a hike of almost 207%. In the same way, only 23 transactions were recorded for villas in Q1 of 2021 and in 2022 total transactions are 415 with a hike of 1704%.
If we talk about the off-plan property for sale in Dubai, a positive trend has been seen in Q1 2022 with an increase of 16% in comparison to Q1 2021. New property for sale in Dubai attracted both locals and non-residents, here non-residents buyers mostly preferred villas & townhouses within secured gated communities. This category of buyers is eager to pay the premium amount as a high return is inevitable from re-selling & renting villas & townhouses. According to the Data of Off-plan sales transactions, there were only 580 transactions in townhouses recorded in Q1 2021 and in the same time frame of 2022 Dubai real estate has recorded 1781 transactions, this is a hike of almost 207%. In the same way, only 23 transactions were recorded for villas in Q1 of 2021 and in 2022 total transactions are 415 with a hike of 1704%.
If we talk about off-plan sale values of Q1 2021 and Q1 2022 then townhouses transaction values were AED 912,237,870 and now AED 3,187,390,098 with a jump of 249%. In the same way transactions of villas were AED 105,005,782 and now AED 1,626,267,327 with a jump of 1449%.
Many non-resident buyers also prefer off-plan apartments & duplexes for sale in Dubai in high-end gated communities like Dubai Marina and Dubai Downtown etc. In these communities, many reputed real estate developers like Emaar and Damac are beating each other with high-end luxury developments. And the best thing is that these units are also very spacious than usual to generate more & more demands.
As you know that during the first quarter of this year villas & townhouses have successfully maintained their dominance in Dubai Property Market with an increase in price by over 20%. In the previous quarter, the average villa for sale price in Dubai was approx AED 1, 250 per sq. ft.
If we talk about top-performing villas/townhouses communities in Dubai then Arabian Ranches & Jumeirah Islands are the best options with a yearly increase in the price of approx 40%. Then comes the Lakes, Jumeirah Village Circle and Palm Jumeirah with a value increase of up to 37%. And then Meadows, Jumeirah Park and Emirates Hills also remained popular in the middle of home buyers & investors with an annual growth of 34%, 33% and 33% correspondingly.
The rise in the number of non-resident property buyers for luxury villas & townhouses has been noteworthy in the last quarter. Luxury water-themed villas in DAMAC Lagoons have recently launched at the price of AED 1,748,000, a reasonable price with best-in-class amenities & features. This is just a single option but there are many villas & townhouse communities in Dubai with high-end specifications from other developers which are being offered at a very attractive price.
During the dull time of real estate in Dubai due to the Covid-19 pandemic, real estate builders in Dubai have been supported by a new kind of wealthy investor from different parts of the world who attract to lifestyle and are more than eager to invest in luxury villas & townhouses.
If we compare Q1 2021 vs Q1 2022, then we find that Canada takes a huge jump of 117%, Russia 67% and the United Kingdom 45% in transactions. Many residents from different nations of the world are now viewing Dubai from a different eye, a different point of view. They want to make Dubai their permanent address since they can work anywhere from Dubai, manage their business in any part of the world and frequently travel from Dubai anywhere in the world.
According to the current momentum of Dubai real estate, we can declare that the coming months are very encouraging. As declared by almost every expert, the boom in the demand for villas & townhouses is expected to continue from 2022-23. As well as, many experts are very hopeful that Q1 of 2022 was just a trailer and Dubai property market can break many records in the coming months.
Given Below Factors Will Clear Your Doubts…
The huge interest was shown by foreign investors, especially the elite class.
Countless real estate investment options
Even if the financial crisis & real estate downturn is expected to continue in many other nations but Dubai's real estate market is one of the safest regions for expatriates and capable investors too. As well as, Government also frequently implements several reforms to make residence permits more accessible, there are countless reasons to expect that the uptrend will keep on in 2022 and ahead.
On the whole, what we are observing in the real estate market of Dubai is that there are huge searches for luxury villas & townhouses with swimming pools & private amenities, over apartments. This transformation in demand is influenced by numerous factors. Lockdown measures have forced home-seekers to reconsider their living requirements and independent villas & townhouses in Dubai are a perfect choice. With affordable property prices & rentals on the outskirts, many property seekers are in many cases also able to afford bigger & luxurious homes. As well, different initiatives are taken by the UAE government to support this trend.
