Size and Outside Space Powers Dubai's Property Recovery

The rebound in Dubai’s residential property market has been powered by the rising demand for villas and townhouses, especially in traditionally sought-after locations.

The surge in demand has been driven by changing consumer needs since “lockdown”. People appreciate the benefits of outside space and community living. The trend in remote working has also added to the need for extra living space.

Furthermore, the fact that some people can work for businesses remotely while still living in Dubai is an attraction. The tax benefits and lifestyle opportunities encourage people to relocate and call Dubai their home.

Affordability is always an important factor for purchasers. Property data analysts - Property Monitor - have recently reported that: “As inventory has dried up amid the seemingly insatiable appetite for villas and townhouses, a widening buyer-seller expectation gap has emerged. Aggressive pricing by sellers and their brokers, after blockbuster months for sales, have led to overpriced properties staying on the market as buyers look for value and explore other options, rather than indulge property owners’ inflated demands”.

Looking forward, while the Dubai property market is showing signs of cooling off, it is likely that growth will continue although at a slower, more sustainable rate of appreciation.