Demand for villas in the UAE climbed in the second quarter of this year, driven by residents seeking bigger homes amid continued recovery of the country's property market.
Villa sale prices in Dubai rebounded with a 23 per cent annual increase in the three months to the end of June, while rental rates rose 10 per cent, according to property consultancy Asteco. Villa sale values in Abu Dhabi climbed two per cent.
“Villa rental and sales rates in Abu Dhabi and Dubai continued to surge, with sales prices in certain segments expanding by almost a quarter in the period," Asteco said in a survey.
Jumeirah Park in Dubai recorded a 52 per cent jump in villa sales prices, the highest increase. Sales prices in Dubai Hills Estate increased 39 per cent, while prices in Springs gained 46 per cent.
Rental rates of villas also increased in Arabian Ranches, Dubai Hills Estate, Meadows, Mirdif and Dubai Sports City. Rates in Arabian Ranches rose 24 per cent year-on-year during the second quarter and 20 per cent in Dubai Hills Estate.
The UAE property market, which softened due to a three-year oil price slump that began in 2014, oversupply concerns and the pandemic, is showing signs of a recovery as people upgrade to larger homes with outdoor amenities amid an uptick in working and learning remotely.
Economic support measures and government initiatives – such as residency permits for retirees and remote workers and the expansion of the 10-year golden visa programme – have also helped to improve sentiment.
In Abu Dhabi, villa sales values also appreciated in several areas, including a 24 per cent rise in West Yas, Al Reef Villas which saw an 8 per cent increase and Raha Gardens that recorded a 6 per cent jump.
“Similar to last quarter, tenant movement was dominated by residents looking to upgrade/upsize, particularly in respect of villas and townhouses. This was facilitated by the increased availability within the mid-to-high-end sector,” Asteco said.
Developers delivered 6,650 apartments and 1,500 villas in Dubai during the second quarter. In Abu Dhabi, approximately 2,070 apartments and villas, including units in Water’s Edge and Mayan on Yas Island, as well as a number of buildings in Al Raha Beach were handed over.
More than 9,350 residential units are set for handover before the end of the year in the capital, according to Asteco.
Apartment sales prices in Dubai rose 6 per cent annually during the second quarter, while they remained flat in Abu Dhabi.