Over the past year, prices for villas and townhouses in Dubai have increased by 28%
Dubai’s real estate market has reached record levels of activity, with the total residential property sales volume reaching 191 billion dirhams ($52.5 billion), according to a report by Espace Real Estate.
Price Growth in Villas and Townhouses
Over the last year, prices for villas and townhouses in Dubai have risen by 28%, while rental costs have increased by more than 23%. Is now a good time to consider purchasing?
Popular Areas and Price Dynamics
The highest price increases were recorded in areas such as Lakes (+59%), Jumeirah Park (+50%), Jumeirah Islands (+43%), Damac Hills (+43%), Arabian Ranches 2 (+29%), and Al Furjan (+29%). The only area with a decrease in prices was Jumeirah Golf Estates.
Rental Dynamics for Villas
Average rental prices for villas and townhouses have increased by 23%. The highest rental price growth is observed in Palm Jumeirah (+93%), Jumeirah Islands (+47%), and Dubai Hills (+32%).
Future Outlook
Although an increase in supply is expected in the rental market by 2025-2026, it is important to consider the diverse demand for housing—from a growing population to investors focused on the tourism sector.
Investing in Dubai’s real estate presents an attractive opportunity due to stable price growth and rental incomes. Significant increases have been observed in both property prices and rental rates over the past year, particularly in popular areas. Additionally, a favorable business environment, high levels of security, and developed infrastructure make Dubai an attractive location for permanent residence, as well as for investment in rental properties or secondary housing.
