Whether to Buy or Rent: Top 5 Villa Communities to Grab a Bargain in Dubai

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  • For renters, The Villa, a community of Spanish-style homes southeast of Downtown near Silicon Oasis, made its debut on the top of the affordability ranking. It dropped in asking prices by 13% over the last 12 months to 34 AED per square foot. Declines were a bit steeper in Al Furjan, down 16% in the last year, and ranked second in affordability, Propertyfinder data shows.

  • Dubai villa rents have seen the biggest decline in asking prices of all property types, compared to apartments or villas in other emirates, but declines appear to be slowing.

  • Demand in affordable areas is rising, as are handovers. This means prices are going down as new stock becomes available, and Dubai residents are getting a bargain to boot.

With a reputation for luxury, those who call Dubai ‘home’ often have more modest needs, especially if there is a family to support. Below, Propertyfinder Group rounded up the top 5 least expensive communities in Dubai to rent or buy a villa, so those looking in time to make a move before a new school year starts can make an informed decision, or those looking for a strong investment opportunity can make an informed choice.

There have been a total of 1,362 secondary villa/townhouse transactions so far this year, remaining steady compared to the same period in 2017.

Transactions will most likely continue to maintain a steady, consistent pace in the secondary market, according to Lynnette Abad, Director of Data and Research at Propertyfinder Group. Although prices are still declining, consumers are staying on the fence whether to buy now or wait, as the large down payment needed to purchase a property continues to be a hurdle for most end-users.

“Once the new ten-year visa and 100% ownership of foreign companies legislation is formally released in H2 and all details are known, this will certainly have an indirect effect on the real estate industry,” says Abad, looking ahead to what’s to come for the second half of 2018. “The new legislation will likely give expats confidence to invest in property locally due to the assurance they can remain in the country for a longer period of time.”

Consistent with the trend which began last year, sale prices are still considered affordable within the secondary villa/townhouse segment, with 51% of transactions below AED 2 million.  

Al Furjan, Jumeirah Village Circle, and The Villa appear on both lists, and are worth a look as family-friendly options with lots of brand new units to their name: a high rate of handovers, central locations with short commutes, and family-friendly.
 

VILLAS (Rent)

Area

May 2018 PPSqFt

6 months previous

12 months previous

The Villa

34

-10.5%

-12.8%

Al Furjan

40

0.0%

-14.9%

Jumeirah Village Circle

41

10.8%

-6.8%

Al Barsha

42

-2.3%

-16.0%

DAMAC Hills

43

-8.5%

-18.9%

 

VILLAS (Buy)

Area

May 2018 PPSqFt

6 months previous

12 months previous

 

Jumeirah Village Circle

677

-7.8%

-9.1%

Dubai Land

722

-8.0%

-17.8%

The Villa

782

-5.1%

-9.7%

Al Furjan

802

-3.4%

-10.8%

Reem

803

-4.2%

-3.3%

 

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