The idyllic villa lifestyle is finally within the reach of many families who earlier had no choice but to opt for apartment complexes. Rolling lawns for the children to play on, a garden where you can relax and savour canapés, a private pool and a jacuzzi to splash around in, ample plot space for your pet to run around, barbecue decks to entertain friends — all this and more is no longer a mirage. Courtesy of the market correction and rental freefall, comparable price scales are blurring the differences between luxury apartments and villas.
Ask Jude Tartkoy, who has leveraged the price decline to upgrade from her three-bedroom apartment in Jumeirah Beach Residence (JBR) to a three-bedroom villa in Al Reem 1 in Arabian Ranches. "It was getting too noisy to live near the JBR Walk, with the young crowd partying all night long. We were seeking a quiet lifestyle with a good community feel," says Jude.
Forced to remain on the sidelines of the freehold market owing to skyrocketing prices, the Tartkoy family had always dreamt of living the villa life in Dubai. "Today, villa prices are slightly lower than what was quoted a few years ago. It made sense to own a villa rather than put our money into someone else's pocket," she says.
Her Ranches villa, a holiday home earlier, overlooks a lake, and boasts a private swimming pool and a jacuzzi. "We moved here in March and we haven't switched on our TV since. We prefer to sit in the garden every evening, watching the ducks in the lake while our son plays on the lawn. He also insists on having his breakfast on the table set in the outdoor garden," enthuses Jude. In a welcome reprieve from isolated apartment living, Jude enjoys interacting with fellow residents while taking a stroll. "In the apartment, my son felt aloof and kept to himself. It's been a refreshing change."
Buyer demographic
It's mostly families, retirees and high-salaried senior management who look to buy villas. Also there are those investors who're seeking rental yields, but owing to the size, the cash flow required for the deal is much more than that for securing an apartment.
Vivian King, marketing director, daGama Properties says, "We have several investors who own up to ten villas in Arabian Ranches and The Meadows. Their rental yields have been very favourable. Some of our clients have chosen to rent in the nearby MotorCity apartments and let their villas for a nice profit, which helps them pay off their mortgages."
The political unrest in the wider Middle East is also bringing in investors who are looking to park their funds in long-term villa investments. Linda Muldoon, managing partner, Gulf Platinum Properties, explains, "There are many cash buyers around who want villas for their families in the future. Villas are achieving as much as 7 per cent yields."
Sought-after villa communities
While the Arabian Ranches is a much preferred area owing to its build quality and well-established facilities, the Emirates Living communities such as The Meadows, The Springs and The Lakes score high on self-sufficiency and strategic location. Upcoming precincts like Victory Heights and The Villa project offer good value for money and are very popular with large families. Meanwhile, luxury villas on the Palm Jumeirah and Al Barari are targeted at the well-heeled end-users.
"Smaller villas are very popular, with big demand for town houses around the Dh1 million mark. These villas sell quickly and are in short supply. They will be affecting apartment sales," observes Linda.
For this reason, Riad Gohar, Emirates Living specialist at Fine & Country, believes that any villa listed in The Lakes between Dh3 million and Dh4 million is a hot deal. "The Lakes community is the most in demand, owing to its strategic location on Shaikh Zayed Road and proximity to the Emirates Golf Club. It is self-sufficient with ten community parks and pools, more than six lakes, the Hayya Club, a supermarket, two nurseries, football field, tennis and basketball courts," adds Riad. "Most property owners are not interested in selling their detached villa in such a community at a rate of Dh3 million. Thus, when such a deal is agreed at that price, then it's very attractive."
While only penthouses and luxury apartments can compete on a similar price scale with villas, ultimately, it's a choice between the different lifestyles that the units offer. While singles, executives and young couples opt for apartments, it's growing families who prefer the extra space that comes with leasing or buying a villa.
Limitations of an apartment purchase
"An apartment offers a great lock-up-and-go lifestyle for families that do not want the hassle of a garden," says Vivian. "A limiting factor may be that you cannot make as many changes to the apartment and exterior as you wish to. Also, the apartment's policy on pets may sway your decision."
From an investment perspective, it makes sense to go for villas owing to the supply-demand fundamentals. While there is limited supply of villas in prime locations, the overhang of apartments in Dubai has been much written about. Says Riad, "The annual service charges of villas range between Dh2 and Dh5 per square foot whereas for apartments, it starts at Dh9 and could reach up to Dh25 per square foot."
It also helps to check the developer's track record and upkeep ability. "When you own your own villa, it is easy to make alterations. Some developers have set rules on exterior areas to limit ruining the image of the development," contends Vivian.
Bogged down by the limitations imposed by landlords on altering villa interiors, Seetha Sanjay and her husband decided to go a step further by getting a brand new villa spanning 7,000 square feet in Al Barsha 2 built the way they wanted. "We viewed a lot of villas in Mankhool, Jumeirah 1 and 2, Al Jafiliya, Arabian Ranches and Hattan in The Meadows before zeroing down on this location. We either didn't like the layout of the villas or there were glitches that couldn't be overlooked. So, we finally decided to build a villa of our dreams," recalls Seetha.
Moving to a villa has resulted in this family entertaining guests a lot more, having a brush with the outdoors and doing frequent barbecues.
The flip side of a villa lifestyle
"The children have a large garden all to themselves and a home theatre, which wasn't possible in an apartment. It's also more practical to have a pet in a villa," says Seetha. On the downside, living in a villa necessitates the presence of domestic maids and adequate security, especially when the family is travelling. "The children also miss their friends from the earlier apartment tower. In a villa, it's a challenge to keep them engaged. They have a tendency to watch TV a lot more," Seetha says.
Though apartments always trump villa transactions, the average apartment in Dubai is quite small and doesn't fit family requirements. Vivian observes, "Some people prefer living in a villa in a quiet neighbourhood while others like the hustle and bustle and would rather live in a spacious luxurious penthouse with a full sea view."
Renuka Rajagopal traded her vibrant lifestyle in Deira for some peace and quiet in the Arabian Ranches. "We lived in an apartment in Deira for five years and it was a natural progression to move to a three-bedroom villa. We've always wanted to move to the Ranches since it offers a resort lifestyle. It is also affordable, unlike the Emirates Hills. However, we miss the energy of Deira and Bur Dubai. But then, I had bargained for a quieter and secluded life," she says.
On a note of caution, Renuka adds, "The only flip side of living in a villa is that when I am alone, the house seems large and empty."
Housing allowance used to rent villas
Villa communities also figure on the leasing radar of high-level executives who add to their annual housing allowance to trade up living space. "In most cases, the tenants would have to raise additional funds, up to Dh50,000 a year, in order to rent in areas like The Lakes and The Meadows," says Riad. The average housing allowance for these executives in Dubai is Dh250,000 per annum. "A lot of medium- to high-ranking managers and pilots have chosen Arabian Ranches as their favourite rental area, with The Meadows, The Springs, Green Community, MotorCity and Victory Heights next on the list," says Vivian.
Data compiled from real estate agencies suggest that a four-bedroom villa in Jumeirah Islands can be rented for Dh260,000 per year, a two-bedroom town house in the Arabian Ranches is pegged between Dh80,000 and Dh120,000 (depending on location, view and size of plot and if there are upgrades in the house).
Podium villas in Dubai Marina could fetch up to Dh300,000 per year. "These are, however, very few and almost never available for rent," says Fine & Country's Riad.
Villa rentals
Victory Heights: Four-bed town house starts from Dh115,000
Al Barari: Six-bed villa starts from Dh450,000
The Villa: Five-bed villa starts from Dh120,000
Deepthi Nair is Sub Editor of Property magazine
