With Dubai real estate sector flourishing well, a question arises whether it’s time to continue renting or high time to buy. If statistics are to be believed then it is true that numerous opportunities are out there for investors and developers alike. Upon fractional analysis of recent Dubai real estate market transactions, we can see a large number of cash-based transactions. However, we can also see a shortage in the supply of affordable townhouses or villas for sale in Dubai.
Dubai real estate market has untapped potential especially, when demand for villas and townhouses is high. At this time, when property investors must be careful before selecting from available investment options in Dubai and be sure about why they must invest in Dubai before starting this journey. The property developers must also be focused and bring new investment opportunities for potential buyers. The market seems to have a major lack of affordable villas and townhouses but developers can see it as an opportunity and create a massive stock for potential buyers.
Dubai – A safe haven
With radical changes in residence visa programmes, Dubai is being boosted as a long-term destination for you and your family. In 2022, a significant rise in interest is observed for luxury and ultra-luxury villas for sale in Dubai. These villas and townhouses are considered family homes, where people intend to live with all family members. And based on these recent statistics alone, we can state that the demand for these family homes, townhouses and villas for sale in Dubai will increase exponentially.
Though not every potential buyer has plans to invest in luxury villas or townhouses, but people are looking for affordable family homes. There must be options for affordable villas and townhouses for sale in Dubai, which are reasonably priced but can add value to property buyers’ property profiles. You can check the top five villas and townhouse communities in Dubai to see what is available in the market and where you can buy in your designated budget.
Villas in Dubai – A prevailing investment option
Dubai real estate market offers a wide range of investment options and opportunities but investors need to be smart and decide where to park their hard-earned money. According to real estate brokers in Dubai, today only one out of 10 launches are townhouses and villas for sale in Dubai, while the remaining 90 per cent market is occupied by apartment developments. The demand for Dubai apartments and villas will continue to rise because the city is in the limelight after the global pandemic and people are ready to invest anywhere, depending upon their budget.
The villas for sale in Dubai can be an exciting upcoming investment opportunity, only if developers put their focus towards this segment and launch high-quality yet affordable villa communities and capitalise on that.
Dubai to face shortage of villas for sale
Backed by strong demand from both local and international property investors, 2002 remained a record-breaking year for Dubai real estate sector. With Dubai’s most expensive waterfront villa worth $82.2 million sold, Dubai real estate market is basking in the light of sheer demand for family homes, villas and townhouses. However, industry experts are of the view that there will be a shortage of townhouses and villas for sale in Dubai in the next three years, mostly because the developers are focused towards apartment towers and developments.
“We have been noticing huge activity in Dubai real estate market, with new launches every other day. Interestingly, most of these launches are either low-rise luxury developments or apartment towers. In three years from now on, Dubai will face a massive shortage of villas and townhouses and there will be strong demand for them,” one of the experts stated.
Demand for Villas for sale in Dubai higher than supply
Dubai real estate market will continue facing a shortage of townhouses and villas for sale, mostly due to the record demand for premium and affordable family homes. According to an estimate, the villa segment only accounts for 13 per cent of the total residential real estate market, and the share of luxury properties is further lower.
According to CORE’s report about Dubai Market Update, the Dubai real estate market will continue facing a shortage, due to lower deliveries this year, despite strong demand. The reasons behind this shortage can be many but the significant ones are the developers’ focus towards apartment developments, rising construction cost, inflation, increase in land prices and supply chain issues. These all factors contribute to delivery timelines delays and increase in sales prices, which leave little to no room for affordable villas and townhouses.
More than 38,000 residential units both apartments and villas for sale in Dubai were planned to bring into the market but the report indicates that only 32,500 will be delivered by the end of 2022. Both apartments and villas are expected to face a shortage of 15 per cent of residential units. During Q3, around 5,700 residential units (both apartments and villas) were delivered to the market, adding to the total of 19,000 residential units delivered in 2022 so far. Based on the calculations and pace of construction, we can expect another 13,500 units will be delivered in Q4 2022.
Areas with most new deliveries
A strong demand is recorded for townhouses and villas for sale in Dubai and similarly, it is also observed that the prices have been growing faster than the apartment segment in the past two years. According to a market report, 2,930 villas were delivered in the market during the first three quarters of 2022, while only 1,000 villas are expected to hit the market in the last quarter of this year.
And a large number of these properties were delivered in Mohammed Bin Rashid (MBR) City, Business Bay, Downtown Dubai, Dubailand and Jumeirah Village Circle. Major projects that were delivered include The Grand at Dubai Creek Harbour, One Park Avenue in Sobha Hartland, Avencia and Aquilegia in DAMAC Hills 2 and Golf Grove in Dubai Hills Estate.
Share your views!
What are your views about the pertaining situation in Dubai real estate market? Are you looking for villas for sale in Dubai or you are interested in buying apartments? Do not forget to share your views with us through call at +971 4876 2473 or can also write us at info@hfre.ae, and one of our representatives will help you devise a tailored investment plan according to your budget and investment plans.
