A significant 40 per cent of property sales in Dubai this year have gone to home seekers are looking to buy villas, a new report showed.
Property Finder’s recent 2024 data has unveiled that out of this 40 per cent, 85 per cent are looking for three bedroom and above villas. Leading the demand in early 2024 are areas like Dubai Hills Estate, Al Furjan, Arabian Ranches, Palm Jumeirah and Mohammed Bin Rashid City, data showed.
According to Property Finder, four key factors are driving this surge:
● Young blood, big dreams: A wave of youthful enthusiasm is sweeping the villa ownership scene, with 39 per cent of buyers under 40 years old in Q1 2024 compared to just 31 per cent during Q1 2023. Influenced by the upward trajectory of rental prices, savvy millennials are seizing the opportunity for long-term investments in spacious villas.
● Ownership over rentals: It’s not just the affluent who are getting in on the villa action. Property seekers across all income brackets are capitalising on flexible payment plans to upgrade to larger living spaces. The number of buyers earning below Dh50,000 per month recorded 47 per cent in Q1 2024, up from 37 per cent in Q1 2023, indicating a more diversified demand for property.
● ROI growth for the win: While villa prices may have experienced an uptick, the return on investment has been nothing short of impressive. In 2023, Palm Jumeirah boasted a staggering 41 per cent increase in returns for five-bedroom villas, while Dubai Hills Estate and Arabian Ranches saw spikes of 38 per cent and 29 per cent respectively. It’s clear: villas are not just a lifestyle choice, but a tactical financial move for many.
● A wide range of desired amenities and facilities: As audience groups evolve, a clear pattern for amenities that are considered a source of comfort and luxury is drawn with a rising demand by property seekers in Dubai. The top three searches from the past three years on Property Finder show a growing interest in villas that provide a maid room, a study area and a private pool. A maid room seems to be the biggest priority for many property seekers looking for villas with three bedrooms or more, with 2024 recording over 129,000 searches already! A budding demand for Vastu compliant homes also seems to be on the horizon with few searches emerging since 2023. Waterfront views continue to be of growing interest among property seekers as well. Last but not least, more people are also looking for pet-friendly communities, with more than 52,000 searches, recorded in 2023 and 22,000 in 2024 already.
Signalling a burgeoning desire for a holistic lifestyle, it looks like Dubai’s property demand is on its way to becoming more centred around vibrant and positive communities within the city.