Villas and town houses 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 per cent and 24 per cent, respectively, last year, a report by real estate company Asteco said.
Apartment sales prices and rents rose by 20 per cent and 10 per cent, 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,” Asteco chief executive HP Aengaar said.
“One clear beneficiary has been the villa and town house 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 programmes.
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, according to Asteco.
While about 30,000 apartments and 3,500 villas are expected to be handed over this year, “some of this is expected to be delayed and will eventually spill over into 2023”, it said.
Rents across all major asset classes are set to increase further for “good quality” properties, although at a lower rate.
Sales price growth is expected to ease in 2022, in line with increased supply and new project launches.
“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,” the report said.
Abu Dhabi outlook
Villas and town houses in Abu Dhabi also enjoyed strong demand in 2021, particularly within well-developed communities on Saadiyat Island and Yas Island.
Average villa rents increased by 4 per cent, although some communities recorded a rise of close to 15 per cent, Asteco said.
Sales prices rose annually by an average of 14 per cent due to the lack of high-quality completed units available for sale, according to the report.
For apartments, rental declines decreased marginally by 1 per cent to 4 per cent across Abu Dhabi last year, although this was more pronounced in older buildings.
Sales prices increased annually by an average of 2 per cent, particularly over the last six months of the year, Asteco said.
About 7,300 residential units, including 7,000 apartments and 300 villas, were handed over in the capital last year. Most of this supply was delivered in Al Raha Beach and on Yas Island and Reem Island.
Close to 8,500 apartments and 300 villas are expected to be ready this year, said Asteco.
“Several new project announcements are expected in 2022,” the report said.
Dubai residential supply
- Units delivered in 2021: 17,000
- Projected number of new units in 2022: 33,500
Abu Dhabi residential supply
- Units delivered in 2021: 7,300
- Projected number of new units in 2022: 8,800
What is Folia?
Prince Khaled bin Alwaleed bin Talal's new plant-based menu will launch at Four Seasons hotels in Dubai this November. A desire to cater to people looking for clean, healthy meals beyond green salad is what inspired Prince Khaled and American celebrity chef Matthew Kenney to create Folia. The word means "from the leaves" in Latin, and the exclusive menu offers fine plant-based cuisine across Four Seasons properties in Los Angeles, Bahrain and, soon, Dubai.
Kenney specialises in vegan cuisine and is the founder of Plant Food Wine and 20 other restaurants worldwide. "I’ve always appreciated Matthew’s work," says the Saudi royal. "He has a singular culinary talent and his approach to plant-based dining is prescient and unrivalled. I was a fan of his long before we established our professional relationship."
Folia first launched at The Four Seasons Hotel Los Angeles at Beverly Hills in July 2018. It is available at the poolside Cabana Restaurant and for in-room dining across the property, as well as in its private event space. The food is vibrant and colourful, full of fresh dishes such as the hearts of palm ceviche with California fruit, vegetables and edible flowers; green hearb tacos filled with roasted squash and king oyster barbacoa; and a savoury coconut cream pie with macadamia crust.
In March 2019, the Folia menu reached Gulf shores, as it was introduced at the Four Seasons Hotel Bahrain Bay, where it is served at the Bay View Lounge. Next, on Tuesday, November 1 – also known as World Vegan Day – it will come to the UAE, to the Four Seasons Resort Dubai at Jumeirah Beach and the Four Seasons DIFC, both properties Prince Khaled has spent "considerable time at and love".
There are also plans to take Folia to several more locations throughout the Middle East and Europe.
While health-conscious diners will be attracted to the concept, Prince Khaled is careful to stress Folia is "not meant for a specific subset of customers. It is meant for everyone who wants a culinary experience without the negative impact that eating out so often comes with."
UAE currency: the story behind the money in your pockets
What is a robo-adviser?
Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.
These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.
Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.
Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
French business
France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.
The Breadwinner
Director: Nora Twomey
Starring: Saara Chaudry, Soma Chhaya, Laara Sadiq
Three stars
What are the influencer academy modules?
- Mastery of audio-visual content creation.
- Cinematography, shots and movement.
- All aspects of post-production.
- Emerging technologies and VFX with AI and CGI.
- Understanding of marketing objectives and audience engagement.
- Tourism industry knowledge.
- Professional ethics.
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Neil Thomson – THE BIO
Family: I am happily married to my wife Liz and we have two children together.
Favourite music: Rock music. I started at a young age due to my father’s influence. He played in an Indian rock band The Flintstones who were once asked by Apple Records to fly over to England to perform there.
Favourite book: I constantly find myself reading The Bible.
Favourite film: The Greatest Showman.
Favourite holiday destination: I love visiting Melbourne as I have family there and it’s a wonderful place. New York at Christmas is also magical.
Favourite food: I went to boarding school so I like any cuisine really.
