Hamptons International attributes the decrease in sales to the restricted availability of villa properties.
The surge in villa sales in Dubai has started to lose momentum, witnessing a decrease of over 50% in transactions during February this year.
According to a report by Hamptons International, the total number of villa property deals in Dubai plummeted by about 55% last month compared to the same period last year. However, there was a notable 22.8% increase in transactions compared to the previous month.
The consultancy clarified that the decline in villa sales was not attributed to a lack of investor interest but rather to the limited availability of villa properties in the market.
“The decline in villa sales is primarily attributed to a shortage of available properties, leading to a market gap, possibly exacerbated by the launch of numerous new apartment projects,” the report stated.
“However, the anticipated handover of villa communities in 2024, including Casa Serena, Tilal Al Furjan, and Damac Lagoons, among others, is expected to address this demand.”
This contrasts with the surge observed in the apartment market, which emerged as the “clear frontrunners” during the same period.
Apartment unit sales soared by over 51% in February compared to the previous year, with transactions exceeding 9,500.
“This underscores a strong demand for residential units in the city,” Hamptons noted.
Value of transactions
Villa properties also experienced a 3.13% increase in transaction value, reaching AED3.3 billion. Apartment transactions totaled AED17.5 billion.
In general, Hamptons observed that Dubai’s real estate market retains its promise.
“The city’s persistent endeavors to broaden its economic base, combined with its strategic positioning and exceptional infrastructure, consistently draw investors and residents.”
“As these elements remain robust and the market adjusts to changing demands, Dubai’s real estate scene is poised to sustain its upward momentum and retain its status as a prime global investment destination.”
