Will Villas and Apartments Continue to Drive Dubai’s Property Market in 2022
Have you seen the splendid sight of the lands of Palm Jumeirah accommodating the villas and the magnificent Burj Al Arab in the backdrop? Real estate buyers have been preferring villas in Palm Jumeirah forever.
You may be on the hunt for a snug apartment or a luxury villa in Dubai. Or you may be a real estate agent wanting to sell a comfy villa or apartment in Dubai. This city has many neighborhoods where you will find lavish properties to invest in.
Real estate agencies should pick up the pace because the villa real estate industry is flourishing steadily. You should start preparing yourself for droves of clients if your property portfolio has villas and apartments. A dynamic Software for real estate would be essential at that time. It will help you manage and serve your clients effectively.
Why Do People Choose Villas When Buying a Property?
First home buyers prefer villas as they are an excellent opportunity to step into the real estate market. Ideal for those wanting to downsize, they are also a powerful investment option.
Villa investment usually results in a high ROI. Many renters need a low-maintenance house to rent. They find it perfect for them due to its smaller yard space compared to a single dwelling.
Moreover, villas are also a great option for retired people. Because they often want to cut back from their existing big family house. With minimal maintenance needed, they provide privacy and space in contrast with a large unit complex.
Villas normally come in an affordable price bracket. It makes them think about stopping to pay dead money or rent. In times when interest rates of house loans are at rock bottom level, it’s a good idea to pay the same “rent” on your mortgage instead.
Most Sought-after Neighbourhoods in Dubai to Buy a Villa
Villas are an ideal option if you are considering buying a property in the city. As per the latest sales trend, the favorite of villa seekers in Dubai is DAMAC Hills 2. Other popular areas include Dubai Hills Estate, Arabian Ranches, Palm Jumeirah, and Jumeirah Village Circle.
Interestingly, JVC provides the highest return on investment in villas, thereby making it investors’ favorite.
The most popular localities in Dubai to buy lavish apartments are Downtown Dubai and Dubai Marina. But, if you wish to buy inexpensive apartments in the city, then you can go for flats in International City, JLT, and Dubai Silicon Oasis.
Villa Prices Are Increasing at a Steady Speed
Breaking their own records of March 2014, Villa prices have increased by 5.3 %. They will definitely keep ruling Dubai’s real estate industry. We are at the end of the 2nd quarter of 2022. Villas were trending as predicted by experts.
The Villa category is expected to modestly grow in popularity in the rest of the year 2022 and beyond. The apartment segment is also believed to do better than last year.
Industry analysts said both apartments and villas are expected to do better in the future but the villa values increase faster. Experts foresee that this year, villa prices may move past the peak levels of January 2014.
ValuStrat Price Index gauges residential market capital performance in Dubai. Its research found that the real estate values rose 18.8 % every year and 1.2 % every month. Villas are the driving force behind this trend. Because prices leaped 34.1 % yearly but their growth rate of 2.1 % remained stable.
Apartments saw one-digit growth of 8.4 % yearly with marginal growth of 0.4 % monthly. In March 2022, the overall house VPI jumped to 79 index points. There is a 21 % steep compared to the index base at 100 points in January 2014.
Still, Dubai’s average apartment‘s VPI increased to 69.5 points. However, normal villas came very close to the 94.1 index base points. Villa’s capital prices increased at a steady monthly rate of 2.1 %. Some neighborhoods observed values marginally growing like Mudon and Green Community West. As observed by the valuation-based index, all apartment areas had positive capital profits yearly at an average of 8.4 %. If you weren’t prepared well for this surge in clients before and have lost some of your revenue due to mismanagement, it is time to start using a developer CRM software.
Dubai Is Among the Three Most Preferred Destinations
Founder of Oro24 Real Estate Development, Atif Rahman believes Dubai has performed well in everything over the past 2 challenging years. It has managed all aspects well whether it is regulatory reform or crisis management or infrastructure development.
It has performed better than all the world in those departments. So, we can be sure that new investors will keep buying properties in the city regardless of the economic situation of our world.
He further said that Dubai can be ranked in the top three destinations globally by any standard. The real estate values here are still extremely low in contrast with the world.
Therefore, it is an economical choice on all scales. We should not forget that historically, the great influence of events such as the Expo amplifies after the event is over.
By hosting the expo, Dubai has shown the whole world its capacity in times of a pandemic. The city continues to attract fresh, new, and natural global interest from the international real estate market.
There is a bright and completely favorable scope for Dubai. It offers a matchless combination of secure investment, an unrivaled lifestyle, better profits, and a shining future thanks to the government’s consistent efforts.
The good news is the market is currently favoring customers. Dubai beats all other cities in terms of real estate. It houses outstanding skyscrapers, multiple top-notch villa communities, and wide palm tree-shaped islands.
Along with one of its kind lifestyle, it also offers the safety you won’t find in many places all over the world. Numerous futuristic multi-racial projects and exclusively designed residential communities are the pride of the city. They make it home for investors.