Dubai will see a shortage of villas and townhouses in the next three years as most new property launches are focused on residential towers, according to real estate industry executives.
Photo: Villa at Alaya Gardens
The villas and townhouses market in the emirate suffered from 2015 to 2019, but demand has been exceptionally strong in the past two years, driven by the change in the lifestyle of residents after the outbreak of the pandemic, along with the migration of high net-worth individuals into the country.
In fact, demand and prices for villas and townhouses have been growing faster than the apartment segment in the past two years.
Matt Gregory, chief commercial officer, of Houza.com, said “There is going to be a big shortage of affordable villas and townhouses,”
According to real estate consultancy CBRE’s third-quarter report, prices in Dubai’s residential market increased on average by 8.9 percent this year to September 2022, while average apartment prices rose by eight percent, and average villa prices rose by 14.3 percent.
It said Dubai’s average villa prices reached Dh1,350 per square foot in September 2022. This average rate has not yet reached the levels seen at the height of the last market cycle in late 2014. On average, villa prices are still 6.6 percent below their peaks.
As a result of strong demand, Dubai’s real estate market broke all records with the most expensive villa being sold for over Dh302 million last month.
In addition, the Golden Visa has also boosted demand for villas among European, Russian, Middle Eastern, and Asian investors.
Source: Khaleej times
