Dubai Villa Prices Stable compared to other types of Housing

As the dust is yet to settle on Dubai residential property prices, there is a slight ray of hope in select communities that show a small recovery in prices.

When you analyse carefully, the numbers indicate that the decreasing prices are more predictable than the burst of recovery that may later enter a phase of stagnation or decline.

Yet, developers and real estate agents will rejoice the increased sale and rental prices for apartments in the first quarter of 2019. The market may just be on to something.

However, villa prices have been predictably falling yet maintaining a better average price than the overall market when one looks at the annual figures. Considering the predictability of prices, families can plan their mortgages and upgrade homes to bigger spaces in well maintained villa communities.  

Also, going by the history in numbers, villa prices can be safely assumed as less volatile compared to apartments.

Dubai Residential Property Price Indices: Sale Price Indices

The Dubai Residential Property Sales Price Index for all residential increased by 0.3 points, from 225.0 to 225.3, which represents an increase of 0.15% in March 2019. On the other hand, prices decreased 8.44% y-o-y.

Villa sale price index decreased by one whole point, thus showing a decrease of 0.25% in March 2019, keeping the yearly decrease to 8.19%.

The villa sales prices appear less volatile compared to that of apartments showing a steady decline, yet maintaining a lower annual average than overall sale prices.

Dubai South is one of the very few neighbourhoods showing growth and demand consistently in the last few months. Buying a villa in Dubai South promises to be a great investment opportunity for the future.

Dubai Residential Property Price Indices: Rental Price Indices

The Dubai Residential Property Rental Price Index for all residential increased by 0.4 points, from 78.6 to 79.0, which represents an increase of 0.51% in March 2019. On the other hand, prices decreased 9.96% y-o-y.

Yet again, rental prices for villas have been steadier compared to apartments, same as sale prices. The year on year decline for villas is less than half of the decline seen in rental prices of apartments.

Mohammad Bin Rashid City and Al Barari are two communities to watch out for which are holding up their rental prices nicely when compared to the decline across all other major communities in Dubai.