19 September 2022

What is better for a residence in Dubai: an apartment or a villa?

Table of content

Before you stop at any choice of real estate, villa, or apartment, you should carefully examine not only the real estate market but also the advisability of acquiring a particular object for living.

Types of real estate in Dubai

If you are a classic lifestyle lover or you live up to the times, you will fit such a real estate option as an apartment. As for the townhouses or villas, they are chosen by couples, the elderly, who love a more private and isolated way of living.

What is the demand for real estate?

If we examine the market trends over the past few months, the leaders in real estate are villas and townhouses. It is due to the past pandemic COVID-19, and, as a consequence, distant work, led to a choice in the direction of comfortable living, from the city center away.

As a result, rents in Arabian Ranches and Dubai Hills have raised to 47% and 48%. Now villas are still trending. And their limited number led to rental rates increasing and instant occupancy. Thus, the annual increase in rents of Dubai villas in the first half of 2022 averaged 25%, while the average rental rates of apartments rose by 14%.

Strong demand for villas has led to apartment sales increasing, which are up 5% in the first quarter of 2022 compared to the 4th quarter of 2021 and 22% over the same period last year.

Villa or apartment?

Villas and apartments have their advantages and properties.

Space

It’s no secret that villas are more spacious than apartments. They have an adjacent area with a garden, pool, parking, or a children’s area. And this option is very relevant for couples. Compared to villas, apartments have limited space, there may be a problem with parking, and there are also restrictions on privacy.

Return on investment

Return on investment in villas and apartments can be different. Apartments have a higher rate of return: an average of 5.5 to 10% per year. The profitability of villas varies from 4 to 5.61% per year.

The areas of Dubai with a high yield:

  • International City – 10%;
  • Barsha Heights – 10.1%;
  • The Greens – 10.2%;
  • Al Warsan – 10.8%;
  • Dubai Studio City – 10.9%.

The areas of Dubai with the highest yielding villas:

  • Meydan City – 5.32%;
  • The Lakes – 5.36%;
  • Mudon – 5.41%;
  • Reem – 5.60%;
  • Green Community – 5.61%.

What about prices?

Villas are always more expensive than apartments. Last three months the average price of apartments was $364,821 (AED 1,340,000). The price of villas is $1,225,146 (AED 4,500,000).

Expenses

Private houses in Dubai imply more expenses than apartments. All this depends mainly on the area of the object. Also, the house consumes more energy and water, especially in the summer, when there is a swimming pool and garden.

Utility costs in Dubai:

  • Villa: Water – Average of AED 900, $ 245
  • Apartments: Water – Average of AED 600, $163
  • For both:
  • Air Conditioning – from AED 257, AED 70 $
  • Grounds Maintenance – from AED 3, 0.8 $ (depending on the size of property)
  • Electricity – 20 fils (1/100 AED) per unit

Also, the cost of villas:

  • Potable water tank cleaning – From AED 478, $130 annually;
  • pool cleaning/ lawn or garden maintenance – AED 3.67, $1,000 annually.

Atmosphere

If you choose a villa, you’ll have 100% connectivity with nature. The air in the villa communities is cleaner, plus the absence of city noise and bustle. And you will be surrounded by gardens. Apartments can rarely give you the same level of freedom, privacy, and comfort.

Conclusion

Buying a house or villa in Dubai is a choice for everyone, depending on needs and financial capabilities. But if you are in doubt about the choice of area to buy a house or apartment, you should ask a real estate expert. He will find you the perfect object based on your preferences and save you time.