Dubai’s real estate area is experiencing fast evolution, with new traits rising in increasing regions. As a result, investors are confronted with sizable decisions concerning where and what sort of off plan property gives pleasant possibilities.
Villas, townhouses, and apartments each provide wonderful capabilities that can attract customers primarily based on their dreams and priorities. Experts are evaluating the pros and cons of these options, offering insights into the capability strengths and weaknesses in 2024.
Dubai sees ‘surge’ in demand for villas, townhouses but there are more apartments
Haider Tuaima, Director & Head of Real Estate Research at ValuStrat, emphasized that the timing and duration of the investment are crucial factors regardless of whether one is investing in villas or apartments. He highlighted that while property investments entail risks, proper due diligence and a long-term investment approach are essential for realizing significant returns.
Tuaima also supplied perception into Dubai’s residential stock, noting that it comprises 800,000 gadgets, with villas and townhouses accounting for 15 percent and residences making up the ultimate eighty-five percent.
“We assume a growth within the availability of single-circle of relatives homes within the market; however, flats will keep outnumbering villas substantially,” he introduced.
Ajay Barua, Client Manager at Betterhomes, emphasized that investing in Dubai’s property market should be influenced by various factors, including budget, preferred location, investment goals, and personal preferences.
He noted a surge in demand for townhouses and villas, attributing it to their high appreciation value, community living aspect, and limited supply. Barua also highlighted that all types of properties offer good investment opportunities.
Haider Tuaima, Director & Head of Real Estate Research at ValuStrat, echoed this sentiment, explaining that while apartments are desired due to their relative affordability and potential for higher rental yields, villa demand remains strong because of their scarcity.
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Best places to buy, and rent townhouses, villas, apartments
According to Ajay Barua from Better Homes, the best areas to buy or hire townhouses or villas in Dubai include Dubailand, Dubai Hills Estate, and Arabian Ranches.
For apartments, Barua recommends areas together with Downtown Dubai, Dubai Marina, Business Bay, Jumeirah Village Circle, Dubai Hills Estate, and Meydan City for buying or renting.
Barua shows that traders can leverage the growth ability and appealing asset costs in these areas to secure long-term condominium earnings and capital increase. He additionally referred to that there are benefits and disadvantages to buying or renting villas, townhouses, or residences, emphasizing the importance of thinking about various factors earlier than you decide.
Advantages and disadvantages of buying, and renting villas, townhouses and apartments in Dubai
According to Ajay Barua from Better Homes, residing in a townhouse or villa gives several ability advantages. These houses provide ample indoor and outdoor space, allowing residents to customize their residing spaces and create personal areas for work or relaxation.
Barua mentioned that townhouses and villas normally yield better returns on investment and have lower service prices in comparison to apartments, making them greater attractive to investors. However, he additionally highlighted a few drawbacks to consider.
“Limited retail and educational options nearby can be a disadvantage, along with the higher maintenance costs associated with maintaining such expansive properties. Furthermore, living in a villa may entail limited access to public transportation, and the higher price point may narrow the potential market for tenants,” Barua explained.
Ajay Barua from Betterhomes noted that apartment living continues to have high demand due to its provision of safety and security features such as gated communities, security guards, cameras, and fire protection systems. However, he also highlighted some potential downsides.
“Finding pet-friendly apartments can be challenging, limiting options for pet owners. Another downside is dealing with noisy neighbors, although this issue can often be addressed through communication with neighbors or building management to find a resolution. Additionally, the void period for apartments is shorter compared to villas/townhouses,” Barua explained.
Will prices increase for these Dubai property types in 2024?
When asked about the potential for prices of various property types to rise in 2024, Haider Tuaima from ValuStrat explained that prior to the pandemic in 2020, villas and apartments generally performed similarly in terms of capital gains and losses from an investment perspective.
However, after the onset of the pandemic, the real estate market experienced a downward trough phase in its typical cycle.
“Buyers were looking to set up a home office so they could work from home, families needed more space to support their children in distance learning, for example, and of course, property prices were cheaper,” he said.
According to Haider Tuaima, the prices of villas and townhouses have essentially doubled in many areas due to the surge in demand driven by the pandemic. Consequently, they have become “increasingly unaffordable” for some buyers.
“This is occurring at a time when some apartment communities are experiencing accelerating price increases as a result of increased buyer demand. Tenants are seeking out buying alternatives, and buyers are looking for areas with potential future gains. Some suggest that perhaps apartments may now offer the best opportunity for price gains this year,” he added.
Ajay Barua from Betterhomes concluded by noting that there is an expectation of continued growth across all property types, indicating a potential increase in property prices. This growth is fueled by Dubai’s luxurious lifestyle, exclusive properties, and Golden Visa opportunities, which continue to attract customers, especially from the upper class.
