Regulatory UpdateMarch 5, 20213 min read

Villas Lead the Market by a Wide Margin

Villas have outperformed apartments since the pandemic began. The structural reasons behind the gap and whether it is likely to persist.

Victoria Sterling

Head of Private Clients

Specializing in family office advisory and multi-generational wealth transfer. Victoria manages relationships with 50+ UHNW families across 15 countries.

Since the pandemic began, villas have outperformed apartments in Dubai by a wide margin. Prices and rents for villas have risen faster, and they have sold more quickly. The gap reflects both lasting changes in preferences and the limited supply of villas compared with apartments.

Structural reasons

Supply: far fewer villas have been built than apartments.
Families: more residents plan to stay long term with families.
Remote work: space for home offices.
Lifestyle: gardens, pools and community living.

Will the gap persist?

Some of the gap may narrow as life normalises and apartments recover. However, structural factors, including limited villa supply and long-term residency reforms, suggest villas will remain in strong demand.

New villa supply

Developers are launching villa and townhouse communities in response to demand. These will add supply over the next few years.

Opportunities in apartments

Apartments may offer better value and yields for investors. Well-located units in established areas could benefit as the recovery broadens.

Considerations

Villas carry higher running costs. Buyers should consider maintenance, cooling and service charges.

Townhouses as a middle ground

For families who want a garden and more space but cannot afford a detached villa, townhouses offer a middle ground. They typically provide three or four bedrooms, a small garden and access to community facilities at lower prices than villas. Many newer communities focus on townhouses to meet demand from young families. Rental demand is strong, and yields are often higher than for large villas. Townhouses do share walls with neighbours, and gardens are smaller, so privacy is more limited. Buyers should compare end units, which usually have larger plots and more light, with middle units. For many families, a townhouse provides most of the benefits of villa living at a more accessible cost.