Dubai: 5 most affordable areas to rent a villa revealed

Source: Khaleej Times

Dubai is facing a shortage of villas as demand outstrips supply, resulting in rentals seeing more than double jump as against the apartments in the first half of this year.

Industry analysts and executives say that the trend of demand for bigger homes that started after the Covid-19 pandemic is sustaining and is now being driven by new visa reforms such as Golden Visas as well. This resulted in increased demand both from tenants and buyers for villas and townhouses.

During January-June 2022 period, villas and townhouses rents in Dubai jumped 64 per cent and 33 per cent, respectively, as compared to a 29 per cent increase in apartments, reflecting demand for villas staying strong even after the pandemic, according to Betterhomes data.

It said villa “demand is still firmly outstripping supply, and it is doing so at a more sustainable rate.”

According to Asteco’s second-quarter 2022 report, 780 villas were completed in the first half of 2022 while a total of 3,300 are expected to be delivered during the whole year.

The report revealed that villas recorded a six per cent rise in rentals and four per cent for apartments in Q2 whilst annual growth stood at 23 per cent and 15 per cent, respectively.

Area Rent from (Dh) To (Dh)
Damac Hills 2 40,000 80,000
Mirdiff 75,000 125,000
Town Square 100,000 130,000
Jumeirah Village 115,000 150,000
Dubai Silicon Oasis 130,000 155,000
Source: Asteco

Dubai’s five most economical areas for yearly rentals for a 3BHK villa are:

“Demand for larger unit types, particularly villas and townhouses, with adequate useable outdoor areas (i.e. balconies and gardens) and a strong community offering remained the focus for residents, thus driving rental and occupancy rates,” the report said, adding that average villa prices rose by four per cent, same as the apartment prices in the second quarter.

Abbas Sajwani, CEO of AHS Properties, said housing demand is rising in general, thanks to forward-thinking social and economic reforms passed by the Dubai government in the past year, boosting its value proposition for foreigners to come set up businesses and work here.

He credited the government’s excellent handling of the pandemic that encouraged foreigners to move here as Dubai is ranked as one of the safest cities in the world to live during the pandemic.

“As for the rising demand for villas, it has been widely recognised that Covid-19 changed customer preferences towards private outdoor living space. People moved from towers and high rises with shared communal spaces and elevators, to secure more private outdoor areas for their own leisure and for their children to play. Additionally, there is a rising demand for ultra-luxury homes,” said Sajwani.

AHS CEO added that the company is focusing on this niche market opportunity in buying and selling homes worth Dh50 million and more.

“The luxury property sector has been attracting investors and high net worth individuals equally. However, with reformed visa rules set to be implemented in September 2022, we will see more foreign investors venturing into the market. The luxury property market is expected to double its share this year due to an influx of keen investors,” he added.

Ayman Youssef, vice-president of real estate firm Coldwell Banker UAE, said Dubai is reportedly facing a shortage of villas because the effects of the pandemic led people locally and globally to realign their priorities towards home, family, health and wellness.

“This has been one of the biggest contributors to the rise in demand for villas and other luxury properties. In addition, the introduction of various new visas, the benefits of the Golden Visa along with the new real estate laws, have encouraged people to consider investing in bigger properties which they can use for their personal, permanent and long-term stay. This has encouraged major developers to plan more luxury and villa property launches,” he said.

He said 2021 witnessed a plethora of buyers for luxury villas and penthouses who were looking for better quality properties and bigger layouts and sizes.

“Transactions in certain luxury areas like Palm Jumeirah and Emirates Hills have soared and we’ve seen some incredible properties sold in 2021. Owing to the strong demand in the luxury segment, inventory is low. While low inventory sure has stimulated the prices of villas and other luxury properties to rise, the other reason that has led to the rise in price and rents is the relaxation of visa and real estate investment laws,” added Youssef.

Coldwell Banker’s vice-president said two years ago, people bought properties primarily for investment purposes but today things are a lot different. “Expats are considering Dubai as their permanent residence and are therefore choosing villas and bigger properties keeping in mind the long-term benefits,” said Youssef.

Entrepreneur

Becoming a successful entrepreneur – is it only about the big idea?

I’m taking a stand with all the young entrepreneurs out there who have come up against some pushback when introducing a new business idea.

It’s a daunting prospect taking those first steps into launching a new business; however, if you’ve had the lightbulb moment, you’re already halfway there. Hopefully, some of the advice below – which has stood me in good stead over the years – will provide guidance and food for thought for any budding entrepreneur starting his or her business journey.

Identify and plug the gap in the market

Although obvious, it’s one of the most important pieces of advice I can give. I identified a gap in the market when regularly visiting hangouts with friends. It became clear that some of these establishments required a Facilities Management (FM) company to look after the premises. I put a plan in place and was able to launch a company to bridge the gap.

There have been FM companies in this region for decades; however, it was about doing something different to fill that void. I analysed the competition and got an idea of what worked well for them and what didn’t. The result was to implement the best practices, combined with my own experiences, to create something different and unique.

A great example I recently read about was an Abu Dhabi-based start-up called The Concept. They have partnered with Etihad Airways to develop an IoT-based food tray that will help reduce food waste in the aviation industry. This is a fantastic idea that is unique and will have a long-lasting positive impact for the future.

The customer is king

The adage ‘the customer is always right’ is as relevant today as it’s ever been. However, for any budding entrepreneur, it’s essential first to identify who your customer or audience is. Many people will fall into the trap of thinking their product is for everyone and market it accordingly. This is a sure-fire way to failure.

Understanding your target audience, what it is they require and how your product or service will benefit them is key. So, do your market research. Social media can be a goldmine of information as people are far more likely to air their grievances when doing so behind a keyboard. Do your research, find out what people like and adhere to it.

Business plans

As an entrepreneur, I’m always thinking of the next big idea and how to achieve it so the thought of putting a business plan together is pretty low down on my priorities. But, it’s a necessity. Putting a plan in place can help you project results and stay on target. Having a solid business plan not only underscores your intent to make it work but will also make all the difference in getting your business off the ground.

Mistakes will be made

I’m fortunate to have grown up around incredibly successful entrepreneurs. Listening to their advice has undoubtedly shaped my business acumen and whetted my appetite to become an entrepreneur in my own right. I can look to my family for guidance and mentorship; however, numerous sites can provide you with the help and direction you need.

Growthmentor, ThinkBold, Score, and Micromentor are just a few of the online platforms across a range of industries that provide access to handpicked mentors and experts in their field.

Don’t forget, mistakes will be made. It happens to the best in the world, so don’t be put off.

Utilise your network

I’ve previously spoken about the importance of your network. With a start-up, it is crucial. Their combined experience and insight alone are invaluable.

Maximise your networking opportunities, put yourself out there at events, business seminars, and social gatherings – a professional working relationship could potentially develop at any time.

My final piece of advice, or rather statement, is that starting a business and making it work isn’t easy. Seasoned entrepreneurs and billionaires such as Richard Branson, Bill Gates, Steve Jobs, and Mark Zuckerberg didn’t have it all their way. Yes, they built global superstar companies, but it wasn’t all plain sailing.

Gates’ first product didn’t make enough money to cover the Microsoft overheads. The first Apple product was built in Jobs’ family garage with money from selling his Volkswagen minibus and Steve Wozniak’s programmable calculator.  Branson, I’m sure, would be the first to admit he faced several challenges and endured many failures in the early years. But one thing they had in common was they never gave up, and neither should you.

I’m certainly not suggesting that sticking to the above points is a foolproof plan to success. There’s so much involved in getting an idea off the ground. Hopefully, they give you a solid grounding and the confidence to take your business idea to the next level.

As ever, get in touch and let me know if these words of advice helped. It’s always good to hear about your success stories.