Dubai real estate: Villa,townhouse prices soar 92% in three years as property market booms

Arabian Business

2 days ago

Dubai Land Department (DLD) recorded AED 54 billion in property sales transactions across Dubai in May, representing an 11 per cent increase from the previous month.
Villa and townhouse prices have increased by 92 per cent since May 2022, rising from AED3,475,523 to AED6,682,023 over three years.
These properties saw a 35 per cent price increase within the last year alone across villa and townhouse communities, according to DLD data.
Investors flock to Dubai
'The Dubai real estate market is not just growing – it's redefining investment benchmarks, especially for villas and townhouses. Imagine nearly doubling your investment in just three years – that's the reality for villa and townhouse owners in Dubai. The undersupply of quality homes, particularly ready and upgraded villas, continues to fuel this growth. Buyers want space, established communities, and turnkey homes they can move into immediately which is exactly what communities like Arabian Ranches, Jumeirah Golf Estates and Victory Heights have,' Lewis Allsopp, Chairman of Allsopp & Allsopp said.
The city's secondary property market demonstrated strength last month, with total sales value surging 68 per cent year-on-year and average resale home prices rising 32 per cent.
Secondary market transaction volume increased 28 per cent year-on-year, indicating a move towards homeownership for expats settling in the city.
The off-plan sector maintained confidence with a 13 per cent increase in average sales price month-on-month and a 20 per cent rise year-on-year.
Buyers continue to view Dubai as a destination for capital appreciation and long-term investment, driven by the city's growth, new businesses, tourism appeal, and residential attraction.
DLD reported a month-on-month decrease in rental renewal volume (19 per cent) and value (17 per cent), whilst new rental contracts strengthened with volume increasing 15 per cent and value rising 9 per cent month-on-month.
This suggests tenants are exploring suburban areas for properties amid ongoing rental price increases in prime locations.
Established, older neighbourhoods are experiencing renewed interest, particularly for well-upgraded homes. Sellers are recognising the potential in renovating older properties, as these modern homes within their communities now command higher prices.
'We're now seeing more sellers upgrade and list their homes as the demand for bigger, newly renovated properties grows,' Allsopp said. 'Many of Dubai's older homes offer unmatched space, with buyers opting for modernised and renovated homes rather than taking on the time and effort of upgrading themselves.'
The data reflects the value of investing in Dubai's property market, particularly in the villa and townhouse segment. As Dubai continues attracting high-net-worth individuals and long-term residents, demand remains strong for homes that offer space, lifestyle, and move-in readiness.