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Dubai is divided into more than 200 districts, each of which is unique with different advantages. To figure out where the best place to buy a villa in the Emirates is, you need to start with why you’re purchasing and what your final expectations are. In this article, we’ll tell you what places have more benefits for a buy-to-live house and what places are better for a buy-to-rent villa in Dubai.
Content:
- Why is buying a villa a great idea?
- Where’s the best place to buy a villa in Dubai?
- Best areas in Dubai to buy a home for residence
- Areas with profitable buy-to-rent villas
- Conclusion
- Help from our specialists
Why is buying a villa a great idea?
Many foreigners who are just planning to become homeowners in Dubai are wondering “should I buy a villa in Dubai?” There are many reasons why villas deserve attention in 2022. Some personal pros are:
- Independent and private living in one of the most technologically advanced cities in the world;
- Most villas are for sale in gated, well-guarded communities where the safety of residents is a top priority;
- More living space;
- Lack of neighbors;
- Privacy;
- Most villas in Dubai are sold fully refurbished and furnished;
- Villas in some coastal areas have access to a private beach.
Financial pros of owning a villa in Dubai:
- Receiving passive income up to 6.5% per year (depending on the area);
- Resale income from rising real estate prices;
- No income taxes;
- Full ownership of the unit (as long as the apartment or villa is in a freehold zone);
- Resident visa for 3 years for a property purchase of 750,000 AED (204.100 USD) and more.
In Dubai, villas are popular as buy-to-live properties as well as buy-for-letting. Average villa rentals have risen by nearly 15% – to 60 AED (17 USD) per m2 over the past 12 months. Despite this, rates are still 25% below the market peak average reached in 2014.
Where’s the best place to buy a villa in Dubai?
Each area is good in its own way. Some are perfect for family living as they’re gated, quiet and life flows slow and steady (Emirates Hills, Umm Suqeim and others). Some focus on tourists and these are profitable to buy for rent or resale (like Downtown Dubai, Jumeirah, etc.). Let's take a closer look at each.
Best areas in Dubai to buy a home for residence
During the pandemic and post-COVID times, buyers' real estate preferences have shifted in favor of spacious houses that can be separated (separate living and working spaces). The reason for this was the practical need to extend living spaces as well as the desire to reduce social contact. This helps people protect loved ones and themselves from illness. Some people look for areas by the sea to buy a house in Dubai to combine business and leisure.
These areas are in demand.
Emirates Hills
This is a residential community that’s part of the Mohammed bin Rashid City (MBR City) area. A mixed development offers you the best new properties in Dubai to buy. There are 4,600 villas and 22,000 apartments in total. There are also office buildings, a huge golf course, first-class restaurants and hotels, cafes, shops, as well as 45 cycling and running routes.
Minimum property value: 720,000 AED (196,027 USD).
Minimum rental price: 45,000 AED (12,251 USD).
Umm Suqim
The area offers balance. Here, you’ll find villas under construction, new and old, that look like palaces. The area is surrounded by excellent beaches within walking distance. Umm Suqeim offers shops, cafes and restaurants, medical clinics, parks and picturesque green areas for guests’ and residents’ comfort. The community is great for family life. There are kindergartens and international schools that cater to children of all ages.
The minimum cost of the unit: 1,168,000 AED (317,999 USD).
Minimum rental price: 64,000 AED (17,424 USD).
Arabian Ranches
Arabian Ranch is a self-contained suburban complex with its own supermarket and shops. It’s away from the busy city. This place is popular with families with small children. Houses and villas are on tree-lined streets that are safe for children to walk and play in.
The real estate market is a mixture of townhouses and villas. Public amenities offer tennis and basketball courts, swimming pools and numerous green spaces. There’s also a golf club as well as prestigious polo and equestrian clubs.
The minimum cost of the unit: 1,590,000 AED (432,893 USD).
Minimum rental price: 90,000 AED (24,503 USD).
DAMAC Hills
Damac Hills (previously known as Akoya) is a new luxury residential complex in Dubailand. The residences are located around the 18-hole PGA championship golf course that’s designed with Donald Trump.
This is a gated community with luxury villas and apartments. Furnished villas with a view of the international golf course are on sale. Sophisticated and roomy spaces, mesmerizing views and unlimited recreational opportunities - this awaits local real estate buyers.
The minimum cost of the unit: 2,129,000 AED (579,641 USD).
Minimum rental price: 109,000 AED (29,676 USD).
Areas with profitable buy-to-rent villas
According to the Dubai Land Department (DLD), the top 5 most successful communities for villa sales in 2021 are:
- Palm Jumeirah;
- Emirates Living;
- Al Furjan.
There’s an increased demand for villa rentals in these areas. Let's take a closer look at each of them.
Palm Jumeirah
It’s the largest man-made archipelago designed in the shape of a palm tree with 14 branches fringed with beach houses and villas. There are residential properties, shops, hotels, piers, spas and its own monorail in the central part "trunk".
Villas on the "palm tree" are very popular with tourists and expats. Many prefer vacationing here for several months a year, and some of them live here permanently.
The analytical service Property Monitor says that the average profitability of island villas is 6.4% a year. The average cost is 1,345 per m2. The price growth for residential housing units reached 2.5% in February. This is one of the best places for anyone interested in selling property in Dubai.
Emirates Living
It’s the first large-scale community of gated villas in the Middle East. It combines the exclusive Emirates Living complex with views of the Montgomerie golf course and family-oriented communities. It forms one of the most attractive residential areas in Dubai.
Large green landscaped zones, lakes and walking paths surround peaceful, tree-lined areas. The area is just a stone's throw from the city. Couples or single people usually rent and buy properties in Emirates Living because they prefer the measured rhythm of life compared to the bustle of the city.
The average profitability is 4.6% a year. The average cost of villas in Emirates Living is 1,272 AED (346 USD) per m2. The price growth for residential units reached 0.20% in February.
Al Furjan
There are 819 houses in Al Furjan. Half of the houses are sold with gardens and terraces, and the rest are separate villas with 3, 5 and 6 bedrooms.
Al Furjan in Arabic means "cluster of houses" or "small village". With a friendly environment, residents feel right at home in the community. Houses and villas stand in small groups connected by paths and park areas. All landscaping work of more than 30 park areas and walking paths that make up a quarter of Al Furjan's master plan are completed.
The average profitability here is 5.4% on average a year. The average cost of villas is 817 AED (224 USD) per m2. The growth in house prices fell by -0.44% in February. This is because of Dubai’s real estate market expanding and new units being launched.
Conclusion
Villas are a highly liquid option for buying a property abroad. They can be used for personal purposes (buy-to-live) and investment (buy-to-rent-out or resell). Or you can combine both. To choose and buy real estate without any risks, you need to look at why you’re purchasing in advance, and then, you can start looking at different areas, housing units, etc.
Help from our specialists
Emirates.Estate specialists will explain where it’s best to buy a villa or a townhouse by the sea. They’ll find a property in line with your preferences and also answer all questions about buying, selling and renting a property in Dubai.
