Villas and townhouses in Dubai recorded a significant surge in prices in the fourth quarter of 2021 as the emirate’s property market continued to recover from coronavirus-induced headwinds.
The villa segment benefitted from the shift towards a work-from-home culture, which resulted in sales prices and rents rising annually by 40 percent and 24 percent, respectively, last year, a report said.
Apartment sales prices and rents rose by 20 percent and 10 percent, respectively, compared with 2020.
For certain sectors, the pandemic has exacerbated existing pressures; for others, it appears to have provided a much-needed catalyst for growth.
One apparent beneficiary has been the villa and townhouse segment. Following the initial onset of the coronavirus and resulting lockdowns, there was a marked increase in activity and prices, and this rally has continued from the first half of 2020 to date.
Dubai’s housing market is recovering from the impact of the Covid-19 pandemic on the back of Expo 2020, a successful vaccine campaign, improving business conditions, economic reforms, and government initiatives such as the golden and retirement visa programs.
The emirate registered 84,196 property transactions worth Dh300 billion ($82bn) last year, the highest annual value recorded in the city’s history, figures released by the Dubai Land Department show.
About 17,000 residential units, comprising 15,000 apartments and 2,000 villas, were handed over in Dubai last year, while about 30,000 apartments and 3,500 villas are expected to be handed over this year.
Villas will continue to be the predominant focus of buyer demand, and the limited number of new handovers in quality communities should translate into higher sales prices.