Apartments in Dubai have become more sought-after than villas as a result of two different factors.
One is the return to a state of normalcy post-Covid that has happened over the past couple of years, which has created a renewed sense of community and brought people back to apartment living.
The other factor is, of course, the rise in property prices, which has led some people to downsize their living options. For someone in a three- or four-bed villa in a community like Dubai Hills Estate or Arabian Ranches, a three-bed apartment is the next logical choice. As a result, there has been significant growth in demand for apartments in Dubai Hills, which is a segment of the community that was fairly quiet prior to that.
High demand, high Transactions
I work at some of the major apartment clusters in Dubai Hills, namely Park Heights, Park Ridge and Executive Residences. Within the past 12 months, I have seen prices rising between 20 per cent and 30 per cent across those clusters, and transactions have increased by 94.8 per cent year-on-year for Q1-2024. During this period, I had a record-breaking sale at Executive Residences, and a number of transactions at the top end of the price bracket for two-bed apartments.
Given that Dubai Hills is primarily occupied by end-users or long-term tenants, it is very rare for units to end up on the market. Under current conditions, that just adds to its appeal. The apartments are in a very prime part of the community – most of the clusters are in a five-minute walk from Dubai Hills Mall and lead out directly to the beautiful Dubai Hills Park.
The King’s College Hospital and the GEMS Wellington schools are also located at that end of the community. For apartment dwellers, every major amenity is easily accessible; they’re also quite close to the main entry and exit points of the community.
Rental changes will boost short-term supply
The Dubai Hills Estate is one of our top lead generators for both sales and rentals, and I anticipate that there will be more rental demand coming very soon. The results of the updated RERA Index are becoming visible in the market, with tenants facing a full 20 per cent rent hike in many cases, which has resulted in eviction notices being served.
Many of those landlords are looking to sell their current units and exit the rental cycle, which creates an opportunity for investors by bringing some more stock to the market over the next few months.
Villa tenants are, in some cases, downsizing their living options and looking for apartment that offer a similar quality of life. Dubai Hills is probably one of the top options around, and I expect that the area will see a balance of investors looking to buy apartment units and new tenants who don’t mind a higher price tag to live there.
Rare listings come to market
Over the past two months, I have secured the listings of two very rare units – a penthouse in the Acacia cluster of Dubai Hills Estate and an apartment at The Opus in Business Bay. The penthouse unit in particular is a standout – it is one of only four penthouses in Acacia and the only one currently on the market.
With the level of demand that Dubai Hills Estate continues to command, this is an option that will not be around for too long. But if there are more owners who opt to sell when rental negotiations stall, we might see a few more unique listings pop up.
The apartment market in Dubai has once again become a highly competitive space and more eyes are turning towards Dubai Hills Estate, particularly at the top end of the mid-market and in the prime segment. Buyers are looking for one-of-a-kind options that they haven’t seen before, which makes it a great time to be a seller.
