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
KILLING OF QASSEM SULEIMANI
Uefa Nations League: How it works
The Uefa Nations League, introduced last year, has reached its final stage, to be played over five days in northern Portugal. The format of its closing tournament is compact, spread over two semi-finals, with the first, Portugal versus Switzerland in Porto on Wednesday evening, and the second, England against the Netherlands, in Guimaraes, on Thursday.
The winners of each semi will then meet at Porto’s Dragao stadium on Sunday, with the losing semi-finalists contesting a third-place play-off in Guimaraes earlier that day.
Qualifying for the final stage was via League A of the inaugural Nations League, in which the top 12 European countries according to Uefa's co-efficient seeding system were divided into four groups, the teams playing each other twice between September and November. Portugal, who finished above Italy and Poland, successfully bid to host the finals.
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
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The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
Best Academy: Ajax and Benfica
Best Agent: Jorge Mendes
Best Club : Liverpool
Best Coach: Jurgen Klopp (Liverpool)
Best Goalkeeper: Alisson Becker
Best Men’s Player: Cristiano Ronaldo
Best Partnership of the Year Award by SportBusiness: Manchester City and SAP
Best Referee: Stephanie Frappart
Best Revelation Player: Joao Felix (Atletico Madrid and Portugal)
Best Sporting Director: Andrea Berta (Atletico Madrid)
Best Women's Player: Lucy Bronze
Best Young Arab Player: Achraf Hakimi
Kooora – Best Arab Club: Al Hilal (Saudi Arabia)
Kooora – Best Arab Player: Abderrazak Hamdallah (Al-Nassr FC, Saudi Arabia)
Player Career Award: Miralem Pjanic and Ryan Giggs
How The Debt Panel's advice helped readers in 2019
December 11: 'My husband died, so what happens to the Dh240,000 he owes in the UAE?'
JL, a housewife from India, wrote to us about her husband, who died earlier this month. He left behind an outstanding loan of Dh240,000 and she was hoping to pay it off with an insurance policy he had taken out. She also wanted to recover some of her husband’s end-of-service liabilities to help support her and her son.
“I have no words to thank you for helping me out,” she wrote to The Debt Panel after receiving the panellists' comments. “The advice has given me an idea of the present status of the loan and how to take it up further. I will draft a letter and send it to the email ID on the bank’s website along with the death certificate. I hope and pray to find a way out of this.”
November 26: ‘I owe Dh100,000 because my employer has not paid me for a year’
SL, a financial services employee from India, left the UAE in June after quitting his job because his employer had not paid him since November 2018. He owes Dh103,800 on four debts and was told by the panellists he may be able to use the insolvency law to solve his issue.
SL thanked the panellists for their efforts. "Indeed, I have some clarity on the consequence of the case and the next steps to take regarding my situation," he says. "Hopefully, I will be able to provide a positive testimony soon."
October 15: 'I lost my job and left the UAE owing Dh71,000. Can I return?'
MS, an energy sector employee from South Africa, left the UAE in August after losing his Dh12,000 job. He was struggling to meet the repayments while securing a new position in the UAE and feared he would be detained if he returned. He has now secured a new job and will return to the Emirates this month.
“The insolvency law is indeed a relief to hear,” he says. "I will not apply for insolvency at this stage. I have been able to pay something towards my loan and credit card. As it stands, I only have a one-month deficit, which I will be able to recover by the end of December."
Six large-scale objects on show
- Concrete wall and windows from the now demolished Robin Hood Gardens housing estate in Poplar
- The 17th Century Agra Colonnade, from the bathhouse of the fort of Agra in India
- A stagecloth for The Ballet Russes that is 10m high – the largest Picasso in the world
- Frank Lloyd Wright’s 1930s Kaufmann Office
- A full-scale Frankfurt Kitchen designed by Margarete Schütte-Lihotzky, which transformed kitchen design in the 20th century
- Torrijos Palace dome
