Dubai’s Villa Market Showcases Long Term Living Trend
Dubai real estate market has been growing strongly for the last 3 years (post-pandemic period), supported by robust demand for both apartments and villas, positive economic growth and a strong influx of international buyers. When it comes to market news, the data reveals that a majority of aspiring property buyers are looking to buy villas for sale in Dubai. Even upon further classification, we get to know that these property buyers are more interested in bigger and luxury villas.
Previously, the majority of investors invested in buy-to-let villas that used to be available for rent almost right after the deals were closed. However, higher demand for luxury villas leads real estate experts to believe that now most of these potential investors have long-term plans to live in Dubai. The areas that are in higher demand for luxury villas are Palm Jumeirah, Mohammed Bin Rashid City, Arabian Ranches, Nad Al Sheba and Al Barari.
Let’s have a look at factors due to which the demand for villas for sale in Dubai has picked up over swanky apartments.
A strong influx of expatriates in Dubai
The market data indicates that a majority of property buyers dominating the Dubai’s villa market are young buyers. The percentage of under 40 property buyers in Q1 2024 is 39% as compared to 31% during Q1 2023. Owing to upward prices of villas for sale in Dubai, young potential buyers are taking full advantage of this investment opportunity.
Another interesting fact about this trend is that not most of the villas are available for rent after the deals are closed. For instance, when it comes to Palm Jumeirah, Al Barari and Nad Al Sheba villas, most of these spacious luxury villas are bought for long-term investment and personal use. Therefore, it is clear that young people from all around the globe are eyeing Dubai as a city where they are planning to live in the years to come.
Scarcity drives up prices for villas for sale in Dubai
According to other news, the booming Dubai real estate market is currently facing a shortage of villas due to a steep surge in demand from global property buyers. Villas are considered one of the most popular and highest in demand investment options in Dubai, which attract global buyers. However, the Dubai property market is grappling with the shortage of villas and finding it hard to keep pace with the continuous higher demand from potential buyers.
Resultantly, the scarcity of villas in Dubai leads to higher prices and pushing not just buyers to spread out their investment portfolio in different types of villas but urging developers to launch villa projects across the city. Higher influx of high-net-worth individuals has stirred the Dubai property market, as they are more inclined towards ultra-luxury villas that can serve as their family homes. This trend has led to a shortage of luxury villas for sale in Dubai.
On the contrary, due to unavailability of ultra-luxury villas, investors have been looking for luxury villas in different areas of Dubai to reside in and not to rent ahead. Besides Palm Jumeirah, investors have been showing increasing interest in Al Furjan, Al Barari, Dubai Hills Estate and Nad Al Sheba villas.
Buying vs. Renting
The recent trend indicates Dubai’s growing appeal as a place where investors are not just parking their savings but considering it a place to settle down on a long-term basis. However, not just affluent buyers are taking interest in villas for sale in Dubai but potential investors from all income groups are capitalizing on available options.
Thanks to the flexible payment plan and relatively affordable prices as compared to other leading cities in the world, these investors are also investing in villas – to move into their homes instead of living in rental spaces. Several options are available within different budget brackets such as the starting price of 3 bedroom Nad Al Sheba villas is AED 5 million and the payment can be spread over years – after paying a certain percentage in advance.
Amenities and Facilities – A deciding factor
When it comes to buying villas for sale in Dubai, certain facilities and amenities play a huge role in deciding the fate of the deal. A luxury villa that offers modern facilities for a comfortable lifestyle draws more attention from property buyers. Villas that offer a private pool, outside garden and a maid’s room are more in demand as compared to the ones without these features.
A majority of Nad Al Sheba villas offer spacious rooms, contemporary kitchen appliances, high-quality bathroom furnishings on top of a maids room, a separate laundry room, a private swimming pool and a manicured lawn. Moreover, Nad Al Sheba is not so far from the central city and offers swift access to major roads to reach key destinations in Dubai. It also features one of the best schools, nurseries and healthcare facilities.
These luxury villas for sale in Dubai are also in higher demand because a community like Nad Al Sheba offers a holistic lifestyle.
