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The Pandemic Caused A Significant Surge In Demand For Villas And Townhouses. As Residents Sought To Move Out Of Their Apartments And Into More Spacious And Independent Living Spaces.
In Dubai’s real estate market, there is a higher demand for two-bedroom apartments among both investors and end-users. This shift can be attributed to changing consumer preferences. Such as a growing inclination towards ownership and an influx of families looking for a second home.
According to Property Finder‘s data for March 2023, 59.7% of those looking to own property in Dubai are interested in purchasing an apartment. While 40.3% prefer villas or townhouses. The study also revealed a rising trend in the percentage of people searching for apartments. Increasing from 57.2% in March 2022 to 59.7% last month.
In contrast, the percentage of people searching for villas and townhouses decreased by 2.5%, falling from 42.8% to 40.3%. Among those searching for homes, the most popular apartment size was two bedrooms. Accounting for 34%, followed by one-bedroom apartments at 32%.
During the pandemic, there was a significant increase in demand for villas and townhouses as people sought larger living spaces outside of their apartments due to pandemic-related restrictions. However, with the pandemic now in the past, the real estate market is seeing a renewed interest in apartments.
According to Scott Bond, the Country Manager at Property Finder, the month of March has seen a noteworthy increase in both demand and value for the thriving property sector in the UAE.
Scott Bond, the Country Manager at Property Finder, stated that they have observed a shift in consumer preferences towards ownership. Alongside continued growth in the rental market. He added that they are closely monitoring and responding to the rapidly evolving property sector in the country. With a positive outlook for the upcoming months.
Imran Farooq, the CEO of Samana Developers, acknowledged that although apartments continue to be in demand for various reasons. Villas have a unique appeal to buyers seeking luxury, privacy, and ample space as primary considerations.
Rental Segment
Regarding the rental segment, Property Finder’s data revealed that 79.8% of tenants search for apartments. While 20.2% look for villas or townhouses. Of those seeking to rent apartments for an extended period, 63.8% prefer furnished properties. While 34.4% are searching for unfurnished apartments.
On the other hand, tenants looking to rent villas or townhouses have a different preference. With approximately 52.1% looking for unfurnished units and 46.8% searching for furnished villas or townhouses.
According to Imran Farooq, one of the biggest advantages of staying in a furnished apartment is the hassle-free experience. As tenants are not obligated to provide post-dated cheques, Ejari, Dewa, and other housing-related charges. He also noted that furnished apartments typically come with inclusive rent, covering utility bills, housekeeping, laundry, and access to amenities such as pools and gyms. This convenience makes them an ideal choice for those staying in Dubai for a short period. Or those who prefer to avoid complex documentation and obligations.
Regarding tenant preferences, Property Finder’s data for March 2023 showed that 33.3% of tenants were searching for one-bedroom units. Followed by 30.4% looking for two-bedroom units, while 29.4% preferred studios. When it comes to villas and townhouses, Property Finder’s data indicated that 42% of tenants were primarily seeking three-bedroom units. While 35.5% were searching for four-bedroom or larger options.
