The real estate sector, both regionally and globally, is influenced by several factors like technological advancement, economic conditions, changing consumer preferences, social developments and many more. These factors play a significant role in shaping new trends and bringing game-changing developments in the industry. These industry trends are considered as key influencing factors in deciding how people buy, sell, or invest in properties. As one of the leading global real estate hubs, Dubai is witnessing a growing trend of consumers gravitating towards villas and town houses over apartments. This is evident by the fact that in 2023 the contribution of villas is over 30%, while in 2022 the villa contribution was a mere 11% of the total units sold in the primary market.
Dubai’s property market, which remains as an attractive destination for investors globally, is currently presenting an ideal time for potential buyers, renters, and investors as both property prices and rental costs are still increasing and offer enough headroom for growth. If you are looking to delve into the vast real estate market of the region, Dubai currently offers the most attractive options.
As consumer’s preferences and living standards continue to evolve, Dubai’s property market is currently witnessing an increased demand for villas. The present real estate landscape proves that villas are more financially viable, as the annual service charges for villas is relatively cheaper.
In the current real estate landscape, villas over apartments are a steaming topic of discussion. When it comes to villas in Dubai, several factors favour it. According to our recent statistics, the demand for villas has seen a significant rise. By the end of March 2023, the value of primary sales of villas stood at AED 13.7 billion. This represents a considerable surge from the value of villas sold of AED 10.6 billion in the entire year 2022. The reason why most people favour commercial villas over apartments is because it enables them to enjoy luxurious amenities coupled with maximum privacy. Buying these commercial villas and renting them out is one of the most profitable options in Dubai, to earn a good rental return on your investments. Over the past few years, Dubai’s property market has been witnessing a constant rise in value and this positions it as a sensible alternative for investors seeking to yield better profit for their investment.
In addition, commercial villas have greater flexibility in usage and occupancy, than apartments. When purchasing properties, space is valued as a commodity and villas offer it in abundance. The difference with apartments is that they limit the privacy and freedom of the individuals staying within. Spacious villas offer a perfect solution to these problems, as there is external private space outside the villa that is enjoyed by the residents. Investors in commercial villas should expect a high return on their investment, as the rental yields typically vary from seven to eight per cent compared to alternative investments like bonds or stocks. The cost of commercial villas in Dubai is still affordable compared to those in major cities like London or New York, therefore there is also a potential for significant capital gains. Moreover, it is easy to rent out commercial villa spaces, particularly due to the immense benefits that they offer.
With all these benefits, a can be considered a wise decision. Owing to the robust and expanding economy of the Emirate, the country is witnessing a surge in new business establishments. Commercial villas in Dubai are one of the safe havens available to investors looking for a profitable investment. Given their strong yields and straightforward rental possibilities, commercial villas provide a great way to reap high revenue in the expanding Dubai real estate market.
