They stressed the need for the market to launch new projects to keep pace with high demand
Real Estate: Unprecedented demand for villas and townhouses in Dubai
Real estate professionals stressed the importance of offering innovative projects in terms of designs, high-quality equipment and services. Archival
Real estate experts said that the demand for villas and townhouses in the Dubai real estate market has reached unprecedented levels, stressing the need for the market to launch new projects to keep pace with the high demand, which exceeds supply.
They told Emirates Today that the current pricing rates for townhouses are encouraging for developers to enter into more projects, noting at the same time the importance of offering projects that suit all categories of investors.
They stressed that the real estate market in Dubai always needs new and innovative projects, with the increase in demand for the emirate's real estate, and the entry of new investors to the market from all over the world.
Lack of supply
Muhannad Al Wadia, managing director of Harbour Properties, said that the real estate market in Dubai needs more residential units due to the high demand for standalone villas and townhouses.
He added that the market also needs to increase commercial offices in a number of vital areas that are experiencing shortages, pointing at the same time to the lack of supply of housing projects for middle-income people.
Al-Wadia considered that the current time is a "golden opportunity" to launch new projects, due to the high demand, but explained that there are challenges facing developers, including the shortage of land, the developer's payment of the full price of the land, as well as the sufficient balance in the escrow account, and the traditional marketing method, pointing out that financial procedures and obligations are a problem facing developers.
Ahmed Al Dawla, chairman of OnPlan Real Estate, agreed with Al Wadia that Dubai's real estate market is in urgent need of new projects, especially for villas and townhouses.
The country stressed that the demand for villas and townhouses is unprecedented and exceeds supply, which raised the prices of these units, explaining that some small townhouses reached a price of three million dirhams in some areas of Dubai.
He stressed the importance of introducing new townhouse projects to meet demand, especially in the interior of the emirate, pointing out that the current pricing rates for townhouses are encouraging for developers to enter into more projects.
Luxury Real Estate
Mohammed Al Mutawa, Chairman of Alwaleed Investments, said that there is a high demand for luxury real estate in Dubai, especially huge villas, noting that this demand continues, as it is supported by people with large incomes.
He added that new projects for villas can be launched, especially in Jebel Ali lands, and a new market can be opened, pointing out that prices remain at good levels as demand continues to increase, so it is good to take advantage of this exceptional momentum that makes the market stronger.
Mohammed Hareb, General Manager of Al Liwan Royal Real Estate Company, said there is an increasing demand in Dubai for residential units, especially townhouses.
He said that the market needs to launch new projects due to the population influx to Dubai, due to the emirate's attractiveness of residents and tourism.
Hareb added that pricing is currently still suitable for some investors, but there are unexpected rises in the price per square foot by some developers, pointing out that prices are increasing for properties under construction or off-plan, due to the high demand by investors, whether citizens, residents or foreigners.
He pointed out that there are problems facing real estate developers, represented in providing the first payment from banks to finance the project, and the problem of installment payments, calling for the payment system to be for a longer period, so that the investor can enter the market and invest in the real estate sector.
In the same context, the Chairman of the Board of Directors of W Capital Real Estate Brokerage, Waleed Al Zarooni, said that the real estate market in Dubai is in dire need to launch new projects to keep pace with the high demand for real estate investment in the emirate, but provided that they are distinctive and innovative in terms of interior designs, high-quality equipment, services, spaces, location, and others, to suit all categories of customers from luxury apartments and villas, as well as townhouses and medium-sized apartments.
Al Zarooni added that these new projects are receiving increasing interest from investors, and are witnessing a great demand once they are launched, noting that the market still maintains strong demand expectations during 2023, which qualifies it to record levels of sale, and encourages real estate developers to launch more new projects.
For his part, Raad Ramadan, General Manager of Awad Gargash Real Estate, said that there is a need for innovative projects that serve investors in the real estate market, with the strong desire of investors from outside Dubai to invest in them, pointing to the high demand for villas and townhouses.
Ramadan stressed that Dubai is taking great steps towards developing projects and enhancing their quality in accordance with the best international standards, pointing to the increase in investments in the emirate's real estate, and the entry of new investors from all over the world to the market.
He added that «real estate stock in Dubai is not enough, and the real estate market always needs new projects, investments and new places».
AED 3.7 billion cost of first Bugatti-branded project in Dubai
Binghatti Properties has announced the launch of the world's first luxury property project under the Bugatti Automotives brand, located in Dubai's Business Bay area.
The company's CEO, Mohammed Binghatti, said that the apartments of the project, which cost more than AED 3.7 billion, are designed to provide parking spaces inside them, noting that this is the first time in the Middle East that a building with such a feature has been developed.
Binghatti explained in remarks on the sidelines of the disclosure of the details of the project, that the building consists of 45 floors, including 182 luxury apartments, including 11 apartments «penthouses», allowing their residents to take their cars to their apartments through private elevators.
He added that the building includes a huge apartment that extends over the three upper floors, with its own large swimming pool on the roof of the building, along with its own ground parking lot that resembles the shape of a showroom that accommodates 20 cars.