Dubai is expecting the launch of three new master communities in 2024, aiming to address the villa and townhouse shortage. The forthcoming communities, including The Heights Country Club and Grand Club Resort, are strategically located in southwest Dubai along the E611 corridor. These developments signal a new phase of expansion for the emirate.
According to Property Monitor, the introduction of these projects is expected to significantly enhance the availability of villas and townhouses. Despite the dominance of off-plan sales, these additions are poised to make a substantial impact.
In February, around 10,000 new off-plan projects were introduced, primarily focusing on apartments. However, single-family home launches constituted only 15% of the total units. This highlights the undersupply in this segment, poised to change with the introduction of new master communities.
Dubai’s real estate prices saw a modest monthly increase of 0.83% in February, aligning with predictions of a slowdown in price appreciation. Despite this, the market continues to witness robust sales activity, with transaction volumes reaching record highs.
Residential transactions accounted for the majority of sales, with apartments, townhouses, and villas being the most traded categories. The demand for off-plan properties remains strong, particularly in the apartment segment, while supply constraints affect the villa and townhouse market.
Although off-plan transactions slightly decreased in January, they still maintain a significant market share. Meanwhile, reselling transactions remained stable, reflecting a steady market.
In February, mortgage transactions decreased slightly, with a notable increase in loans for new purchase money mortgages. The average loan amount and loan-to-value ratio remained consistent, indicating stability in the mortgage market.
Overall, the introduction of new master communities in Dubai is poised to address the demand for villas and townhouses, marking a significant step in the emirate’s real estate landscape.