The increase in demand for villas can be attributed to changing work and lifestyle habits.
Villa rental rates in Abu Dhabi and Dubai remained high in the first quarter, driven by a surge in demand from well-developed mature and emerging villa communities.
The rental market in Dubai during the first quarter for apartments and villas increased compared to the previous quarter, with average rental rates increasing by 1.0% and 4.0% respectively. However, rates were still 10% and 2.0% lower for apartments and villas compared to the same period last year, according to the UAE’s Q1 2021 real estate report by property management experts Asteco.
Dubai’s first quarter 2021 real estate review published by ValuStrat said residential rents in Dubai were relatively stable compared to the previous quarter, as they saw a decline of less than one percent during the January-March period. . The real estate consultancy also noted a 3.9 percent year-over-year increase in villa rents. “Tenants paid 55,000 dirhams in average rents for apartments and 211,485 dirhams for villas in Dubai,” the report said.
The increase in demand for villas can be attributed to changing work and lifestyle habits. Office rental rates continued their downward trajectory with quarterly and annual declines of -3.0% and -18%, according to the Asteco report.
In the first quarter, no full-scale villa developments were delivered in Dubai, while the apartment supply stood at nearly 2,000 units with notable deliveries in emerging communities such as Dubai Hills Estate and Dubai. Creek Harbor. Office deliveries were marginal at 70,000 square feet of space.
Dubai property prices also rose in the first quarter, varying by 3.0% for apartments and 6.0% for villas.
“Although the impact on investment properties (education, hotels and offices) saw less activity, the villa segment saw a marked increase. For example, the selling prices of villas on Arab ranches, meadows and springs rose 9.0 percent on average during the quarter. Apartment sales also performed better with quarterly increases of 5.0% in Jumeirah Village and Dubai Sports City, ”the report said.
The Abu Dhabi residential market delivered around 1,700 apartments and 50 villas during the first quarter of 2021 with increasing demand for villas, especially in well-developed villa communities such as Yas Island, Beach Al Raha, Saadiyat Island as well as the Al Reef community. Although average villa rental rates were more or less unchanged in the first quarter of 2021, there has been a significant increase in rents for West Yas, Golf Gardens and Saadiyat Beach Villas.
In Abu Dhabi, demand for completed villas for sale remained high in the first quarter of 2021, mainly due to the limited availability of quality properties offered at attractive prices. Affordable communities such as Al Reef have also noted increased interest and hence an average quarterly increase in selling prices of 7.0%. Conversely, apartment selling prices have remained broadly unchanged over the past three months due to limited demand in this sector.
“Although Abu Dhabi’s average rental market for residential properties remained relatively stable in the first quarter of 2021, with a large majority of tenants looking to modernize or increase their size due to increased affordability in the mid-to-high sector. Upscale and continued incentives offered by owners, the office sector has remained one of the toughest asset classes in the emirate. Landlords are also increasingly offering incentives related to payment and rental terms. Several Class A and B office buildings have seen increased demand from Chinese and Israeli companies seeking to establish a base in Abu Dhabi, ”the report said.
In Al Ain, as tenants benefited from lower rental rates, property market activity increased during the quarter. Apartment rental rates in the Northern Emirates were more or less stable in the first quarter of 2021 with marginal declines of -1.0% for high-end properties in Ras Al Khaimah and Fujairah. The selling prices of apartments in Sharjah have also increased by 3.0% in the past three months. – [email protected]