Dubai will have at least 10,000 new villas and townhouses over the next two years, according to a real estate firm, as demand surges for new property across the emirate.
The Gulf region’s trade and tourism hub and host of Expo 2020, Dubai has experienced a recent boom in property deals.
For all the latest headlines follow our Google News channel online or via the app.
The sale values of real estate transactions until November last year were the highest yearly sales figures since 2014, Dubai Land Department data shows.
Homegrown real estate developer, ZāZEN Properties, has conducted a report showing that 2022 has seen more end users continue to buy across the city due to low mortgage rates and an increased number of buyers looking for larger living spaces in low density communities.
It says that the average sales price has increased 11 percent in the first quarter of 2022, in comparison with the same period last year, mainly due to premium villa sales. Ready apartment buildings with larger spaces and a strong community offering also performed well as stock of ready villas depleted.
While rental rates are rising across the country, real estate demand continues to boom, the report states.
A major shift in buying behavior has come through as a result of the COVID-19 pandemic that has extended into the first quarter of the year, with a greater preference placed on completed residential units, rather than on off-plan units.
This is reflected in the sales seen through the first quarter of the year as the Dubai Land Department says that 70 percent of all transactions were finished units.
Apartments currently account for the majority of total completions in the first quarter of 2022, as the supply of new villas are limited due to lack of stock and pipeline.
Villa stock in prime Dubai areas is limited and 2022 will see only a 3.6 percent rise in planned deliveries in prime submarkets, keeping prices at the higher end, said Madhav Dhar, co-founder and COO of ZāZEN Properties.
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
The high supply of villas and townhouses in the coming years will result in a drop in prices below the five million AED mark, predicted Dhar.
“As per the Dubai Statistics Center, the population in Dubai was just over 3.5 million people as of April 2022, with a target of 5.8 million people by 2040, and the city is ready for it,” he said. “Whether it is apartments or villas, the city is bustling with constant new developments and is ready for the growing population.”
Read more:
Dubai sets historic record in property sales in Q3: Report
Dubai housing a buyer’s market despite price rise: Poll
Dubai’s most expensive mega mansion sells for $76 million