The surge in sales of villas in Dubai appears to be slowing down, as February transactions dropped by over 50%.
According to a Hamptons International report, the total number of villa properties sold in Dubai during the same period last year decreased by about 55%. However, there was a 22.8% increase in transactions over the prior month.
According to the consultancy, there was no correlation between the drop in villa sales and investor demand. Due to a shortage of available villas, sales have decreased.
“This decline is primarily due to a limited supply of villas, creating a gap in the market and perhaps due to the number of new apartment launches,” it said.
“However, the upcoming handover of villa communities in 2024 in Casa Serena, Tilal Al Furjan, Damac Lagoons to name a few, is expected to address this demand.”
The trend contrasts with the growth seen in the apartment market, which stood out as “clear frontrunners” during the same period.
In February, apartment sales jumped by over 51% over the same month last year, with over 9,500 units sold.
“This underscores a robust demand for residential units in the city,” Hamptons said.
Value of transactions
The value of transactions involving villa properties increased by 3.13% to AED 3.3 billion. The total value of deals in the apartment category was AED 17.5 billion.
Overall, Dubai’s real estate market is still looking good, according to Hamptons.
“The city’s continuous efforts to diversify its economy, coupled with its strategic location and world-class infrastructure, continue to attract investors and residents alike.”
“As long as these factors remain strong, and the market adapts to evolving needs, Dubai’s real estate landscape is likely to maintain its upward trajectory and remain a global investment hotspot.”