Real Estate Top Stories

Dubai villa prices rise as demand increases for open space

The average rent for villas rose by 2.6% in the second quarter of 2021

Rental rates for villas in Dubai continue to remain strong as the demand for more open spaces increase among residents, within well-developed mature and emerging villa communities, according to media reports. Average rents of villas in Dubai rose by 2.6 percent during the second quarter of 2021, compared to the first quarter. Additionally, the value of transactions jumped by 50 percent during the second quarter of 2021.

The residential average as apartment rents recorded a slight decline of 0.5 percent according to the latest research by leading international real estate services firm, Chestertons. Residential sales also reached up to $8.4 billion between March and June 2021, up from Dh20.77 billion dirhams from the previous quarter.

Chris Hobden, head of Strategic Consultancy at Chestertons Mena told the media, “The rise in villa rents was principally driven by continued tenant demand for more open space and outside areas, with agents reporting a sustained increase in villa enquiries since the easing of social distancing restrictions last year. With work-from-home policies continuing across the private sector, even if on a part-time basis, we expect villa rents to outperform the wider residential average over the months ahead.”

Palm Jumeirah registered the highest increase in villa rents at 3.9 percent quarter-to-quarter followed by Jumeirah Golf Estates, Victory Heights and The Lakes recording an increase of 3.4 percent, 3.1 percent, and 3 percent respectively.

Even though apartment rents in Dubai registered a modest decline of 0.5 percent, downtown Dubai recorded a 1.7 percent increase quarter-to-quarter, followed by Dubai Marina at 1.5 percent and JLT at 1.1 percent. DFC registered the highest quarterly decline, at 3.4 percent followed by Discovery Gardens at 2.8 percent.

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