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As a real estate expert in the UAE, I've seen many market trends come and go in the past decade. One that has remained constant is the ever-growing demand for villas – from both home seekers looking for a new place to live and investors wanting to secure high returns.
Villa prices in Dubai increased sharply by 20.28 percent year-on-year in November 2024, while Abu Dhabi saw a rise of 11.51 percent in the same period.
But, what is it exactly about villas that make them stand out in the market?
The allure of villa living in the UAE has always been strong. The promise of spaciousness, privacy, and a connection to the outdoors resonates deeply with families and individuals alike. However, recent years have seen this underlying desire boosted by global events and evolving priorities.
Take the pandemic for instance, which made people more aware of the limitations of apartment living. Suddenly, private gardens, swimming pools, and ample room to work and relax at home became irresistible.
And while the lockdown days are behind us, this newfound appreciation for space and privacy is still growing.
There are also many strategic initiatives being placed by the UAE government – including the expansion of freehold areas and long-term residency visas which have created a stronger, more confident investment environment.
These policies have broadened the pool of potential buyers, attracting both local and international investors seeking stability and a high quality of life.
Prime residential prices in Dubai experienced substantial growth in recent years, demonstrating the strength of the market and the appeal of premium villa communities, according to Knight Frank.
While figures can vary, the overall trend points towards continuous demand.
We are also seeing ongoing development of world-class infrastructure across the country, from improved road networks to expanded leisure and entertainment offerings.
This has made villa communities more attractive, since areas that were previously considered remote are now easily accessible, offering residents the tranquility of suburban living without sacrificing connectivity to urban amenities.
The rise of remote work has also significantly impacted the villa market. With more professionals enjoying the flexibility to work from home, the need for dedicated home offices and comfortable living spaces has become essential.
I have seen an interesting shift in the way buyers browse the market. Commuting times, for example, are no longer a deal breaker for those seeking a larger home.
Many buyers will gladly relocate to the outskirts of the city in order to secure their spot in new villa communities – even if this means driving longer distances or living further away from key city attractions. Space and lifestyle have become the new priorities as opposed to proximity.
And while demand for villas remains high, the supply is expected to keep pace, ensuring a strong and balanced market.
According to recent industry reports, approximately 19,700 new villas are expected to be completed in Dubai by the end of 2025. The supply of new villas is projected to meet the growing demand, with developers focusing on luxury and family-friendly communities.
Property prices in Dubai are set to rise by 5-8 percent annually in 2025, with villa prices reflecting the growing demand for private, ample living spaces.
As for investment opportunities, I believe larger homes are still a great choice for those looking to get high returns. The average rental yields for villas in Dubai are expected to remain attractive, with a forecasted increase in rental prices by 13 percent for long-term leases according to market studies.
From lifestyle benefits to investment returns, villas continue to offer distinctive appeal for both local and international buyers. While market trends may evolve, one thing remains clear—villas are set to remain a resilient and sought-after choice well into the future.
(The author is Founder and CEO of Dubai-based developer Sunrise Capital. Any opinions expressed in this article are the author’s own)
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