Don't Get Left Behind: The Villa Boom You Can't Afford to Ignore in Dubai
On this week's Taking Care of Business podcast, Paul Kelly, Operations Director, and Daniel Maloney, Revenue Performance Director, break down the January Market Report. Paul and Dan take a deep dive into January's performance, explore why buying could be more profitable than renting, and reveal why villas and townhouses are the top investment choices for 2025.
A Flying Start to the Year
January was a great start to the year with Dubai Land Department (DLD) reporting just shy of 34 billion dirhams worth of transactions in the sales property market. Which is an 18% increase year-on-year! And it's not just about value; the volume of transactions also jumped by 19%.
Why Everyone Wants a Piece of Dubai
Dan discusses why more and more people are choosing Dubai as their home, drawn by its safety, fantastic quality of life, and strategic government initiatives like the 10-year golden visa. As he says "People want to be here... I can't see it slowing down anytime soon." This influx is also reflected in our own (Allsopp & Allsopp) record-breaking buyer registrations in January – further proof that the desire to own property in Dubai is stronger than ever.
The Great Rental Rethink
Now, here's a twist. While sales are soaring, Paul and Dan deep dive into the rental market and the drip in renewal rental contracts in January. Dan believes this signals a significant shift in mindset. People are no longer just testing the waters in Dubai; they're putting down roots and staying here longer. Dan explains, that more and more residents are choosing to buy rather than rent fueled by the rising rental costs making homeownership a more attractive prospect for many. The challenge, as Daniel points out remains the large down payment, the biggest barrier to entry for aspiring homeowners.
The Real Impact of the 6% Mortgage Fees
Dan and Paul also touched on the recent clarification regarding the inclusion of purchasing fees in mortgages. While the policy itself hasn't changed, the renewed focus has brought it to the forefront. Paul doesn't foresee this having a major impact on the market, as the desire to own property in Dubai remains strong.
The Villa Boom
The villa and townhouse market continues to be a hotbed of activity. We've seen massive surges in both transaction volumes and average prices, driven by limited supply and high demand. As Dan highlights, "There's just not enough villas." This scarcity is pushing buyers towards new communities further out of the centre of Dubai.
Missed the Boat? Think Again
For those wondering if they've missed the boat on investing in Dubai property, Dan’s message is clear: absolutely not. "I definitely don't think people have missed the boat," With ongoing population growth and a positive economic outlook, the Dubai property market still offers significant opportunities for investors.
It is Time to Dive Into the Property Market?
The January data paints a picture of a vibrant and dynamic market. While challenges like high down payments and aggressive payment plans exist, the underlying demand for property in Dubai remains strong. Whether you're a first-time buyer or a seasoned investor, now is the time to pay attention to the trends shaping this exciting market.
For the full Taking Care Of Business podcast episode head to our YouTube channel