Villa rentals were relatively stable throughout the whole year, according to the latest Asteco report. Transactions in the rental market for both categories picked up as tenants took advantage of lower rates to move to better quality accommodation, while people also relocated to Dubai from other emirates.
Sales prices for villas were unchanged in the second half of 2011 but the number of end-users buying both villas and townhouses increased as more families and professionals were able to switch from renting to owning.
The average sales price for a villa in Arabian Ranches was AED8,000 per square metre and AED7,000 per square metre in the Springs.
Looking ahead to 2012 Asteco expects sales prices for apartments and villas to see marginal declines as some 10,700 new apartments and 1,300 villas are seen entering the market in Dubai in the first six months of the year. This will add to the current supply of 397,800 apartments and 57,700 villas.
Price falls will be mainly in areas with ongoing construction and incomplete infrastructure but the level of transaction activity is set to continue with a rise in the number of end-user buyers.
Asteco also sees buyers from other Arab countries as continued regional unrest and economic uncertainty boosts Dubai’s safe haven status.
Apartment and villa rents are seen steady in 2012 with minor declines for low quality and poorly managed buildings in certain areas but the number of transactions are expected to remain high as further supply enters the market leading to more price competition for owners and more choice for tenants.
