Dubai villa sales drop by 55% due to property shortage

Dubai villa sales drop by 55% due to property shortage

20 March 2024, ZAWYA

The sales boom in Dubai’s villa market has shown signs of fizzling out, with transactions falling by more than half in February this year.

Total deals for villa properties in Dubai dropped by approximately 55% last month compared to the same period last year, a report from Hamptons International said. Compared to the previous month, however, transactions saw a 22.8% increase.

The consultancy indicated that the decline in villa sales had nothing to do with investor demand. The drop in sales has been due to limited villa stock in the market.

“This decline is primarily due to a limited supply of villas, creating a gap in the market and perhaps due to the number of new apartment launches,” it said.

“However, the upcoming handover of villa communities in 2024 in Casa Serena, Tilal Al Furjan, Damac Lagoons to name a few, is expected to address this demand.”

The trend contrasts with the growth seen in the apartment market, which stood out as “clear frontrunners” during the same period.

Sales of apartment units skyrocketed by more than 51% in February compared to a year earlier, with deals totalling more than 9,500.

“This underscores a robust demand for residential units in the city,” Hamptons said.

Value of transactions

Villa properties also saw a 3.13% rise in terms of the value of transactions, which reached AED3.3 billion. In the apartment category, total deals were valued at AED17.5 billion.

Overall, Hamptons noted that Dubai’s real estate market remains promising.

“The city’s continuous efforts to diversify its economy, coupled with its strategic location and world-class infrastructure, continue to attract investors and residents alike.”

“As long as these factors remain strong, and the market adapts to evolving needs, Dubai’s real estate landscape is likely to maintain its upward trajectory and remain a global investment hotspot.”

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