Dubai: Villa rents increase as demand for bigger homes soars post-Covid

Dubai: Villa rents increase as demand for bigger homes soars post-Covid

UAE Golden Visas also drive buyers' interest in larger houses worth Dh50 million or more

Published: Sun 31 Jul 2022, 1:15 PM

Dubai is facing a shortage of villas as demand outstrips supply, resulting in rentals seeing more than double jump as against the apartments in the first half of this year.

Industry analysts and executives say that the trend of demand for bigger homes that started after the Covid-19 pandemic is sustaining and is now being driven by new visa reforms such as Golden Visas as well. This resulted in increased demand both from tenants and buyers for villas and townhouses.

During January-June 2022 period, villas and townhouses rents in Dubai jumped 64 per cent and 33 per cent, respectively, as compared to a 29 per cent increase in apartments, reflecting demand for villas staying strong even after the pandemic, according to Betterhomes data.

It said villa "demand is still firmly outstripping supply, and it is doing so at a more sustainable rate."

According to Asteco's second-quarter 2022 report, 780 villas were completed in the first half of 2022 while a total of 3,300 are expected to be delivered during the whole year.

The report revealed that villas recorded a six per cent rise in rentals