Larger, open-plan homes have now become a necessity, real estate industry executives say.
Despite the drop in Covid-19 cases in the country, UAE residents appear to continue to prefer larger villas and apartments as renters now feel larger units have become a necessity.
The demand for larger units had grown exceptionally in the UAE after the outbreak of the pandemic in early 2020, due to restrictions on the movement of people to contain the spread of the disease.
The number of daily coronavirus cases in the country peaked in early 2021 at nearly 4,000 cases, then fell to double digits in November last year. Cases skyrocketed to over 3,000 in January 2022, but have now dropped below 400.
Real estate industry executives say Covid has affected the mindset with which people choose a home, as larger, open-plan homes have now become a necessity for most residents.
“While things are getting back to normal, we have noticed that people still prefer to stay in their existing villas, mainly due to the increased comfort, better view and in-house facilities available,” says Ayman Youssef, Vice President, Coldwell Banker, United Arab Emirates. “The villa and townhome communities offer a number of on-site amenities, such as gardens, dedicated areas for various sports, walking trails, and more. This is not available in stand-alone properties and buildings.”
“As Covid cases decline, we are seeing an increase in demand for good quality apartments in Downtown, Dubai Hills, Dubai Marina, Creek Harbor and Palm Jumeirah. Rent increased by 23% in Dubai Marina apartments and 40% in Dubai Hills. These areas are preferred primarily by locals and expats who have been in the country for a long time, as well as people with large families and long-term residents,” he said.
According to the second-quarter report from real estate consultancy Asteco, apartment rents rose 16 percent to 23 percent in the second quarter of this year, and 4 percent to 19 percent in the affordable category.
Morgan Owen, managing director of Provident Real Estate, said that as the number of properties in Dubai slowly increases compared to the number of residents, there has been an increase in end-user demand for villas and townhouses rather than units. smaller like apartments
New young tenants
Youssef revealed that a new influx of young people, who are flocking to the UAE on flexible visa options announced by the government, typically opt for apartments located in the heart of the city, with easy access to retail, restaurants, life night and more. . “This has led to an increase in demand for properties in areas such as Dubai Marina and JLT,” he said.
Rizwan Sajan, chairman and founder of Danube Group, said that people’s housing choices are determined by their lifestyle, culture and financial capacity, not by the pandemic.
“Covid-19 forced people to temporarily isolate, but it did not change their choices or lifestyle. However, due to an increase in employment, young professionals, single or couples, could move to smaller houses,” she said, adding that more and more people are buying houses.
“In addition to new families moving to Dubai due to economic opportunities, many renters are also buying a house to live in, which will save them from rent-related inflation for years to come,” said Danube Group founder .