Strong international buyer interest is driving Dubai villa prices higher

Communities like The Meadows and The Springs posted the highest quarterly process increase of 6.6 percent.

Due to international buyer interest and improved market sentiment in Dubai’s property market are rising. The value of transactions during the second quarter of 2021 jumped by nearly 50 percent, said real estate services firm Chestertons in its new research.

Residential sales totalled USD 8.4 billion between March and June 2021, up from USD 5.6 billion in the previous quarter. In addition to that, the transaction value reached its highest level since the fourth quarter of 2013, when sales brought USD 8.6 billion.

A total of 14,426 units were purchased in the second quarter, which is 35.48 percent more than in the first quarter of the year. 

In its research Chestertons pointed out that the surge in sales had been driven by 'continued international buyer interest' as well as an improvement in interest among residents of UAE. 

Chris Hobden, head of strategic consultancy at Chestertons Middle East and North Africa (MENA), stressed that there was a desire among UAE residents to buy ahead of anticipated higher prices. Apart from that, favourable mortgage rates and generous developer incentives are also stimulating local demand. 

A huge interest in villas is seen among the international buyers, which has driven prices within the segment by 5.7 percent quarter on quarter and 9.1 percent year on year. 

Some of the buyers are interested in properties in The Meadows and The Springs, that have witnessed the highest quarterly increase of 6.6 percent. The Lakes are popular too, recording a price increase of 6.5 percent, while Jumeirah Park registered a 5.4 percent rise.