When it comes to real estate in the UAE, especially in Dubai, most investors look at apartments out of habit. However, recent years have shown: villas and townhouses have become the new “blue ocean”. Below is a detailed five-point analysis of why this particular segment of housing is outperforming in terms of profitability, demand and sustainability.

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1. Structural shortage of villas: demand exceeds supply

• According to consulting agencies, Dubai has recorded shortage of more than 10,000 villas.

• At the same time 91.4% of all new projects are apartments, and only 8.6% — villas.

• Even major developers and specialized media acknowledge: the supply of family homes is in short supply, especially in popular communities.

Conclusion for investors: scarcity is a guarantee of pressure on prices and rentals. The lower the supply and the stable demand, the higher the growth potential.

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2. Villas are growing in value faster than apartments

• In 2024, the overall average property price in Dubai increased by 19%.

• Villas have been added about 20.2%, and apartments — 18.9%.

• ValuStrat Price Index:

• 259 points by villas,

• 162.8 points by apartment.

• Locations grew especially actively: Palm Jumeirah, Dubai Hills Estate, Arabian Ranches.

Conclusion for investors: historically villas show higher capitalization, especially if you enter at the early stages of construction.

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3. Demand is generated by families and long-term residents

• After covid and launch golden visas inflow increased sharply family shoppers and HNWI (high-yield customers).

• These customers are looking garden, privacy, parking and security, that is, they are betting on villas.

• Dubai has crossed the 4 million population mark and is moving towards 5 million by 2030.

Conclusion: demand is generated not only by investors, but also end userswhat does the asset do more sustainable in the long run.

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4. Family homes protect against market volatility

• The market for new buildings is highly skewed: almost all new projects are apartment towers.

• While the demand for classic family houses It is growing due to emigration, improved quality of life, security and visa programs.

• In the premium segment, experts directly say: ultra-luxury homes are in short supply, despite active construction.

Conclusion: It is difficult to close the shortage of villas — this is not a tower that can be built in 2 years. Master communities and infrastructure take years. Therefore, villas are more stable and less prone to “bubbles”.

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5. Example: villa vs apartment in numbers

Let's compare two types of facilities according to data for 2024:

Villas:

• Price increases in a number of areas — up to 31-32% per year.

• When renewing a lease, an opportunity raise the rate by 10-20% without losing a tenant.

• Demand is stable, the competition is lower.

Apartments:

• Growth is also high, but just below, and the competition is much higher.

• Tenants “migrate” between towers, catching discounts and promotions.

Profitability:

• Yearly rental yield:

• Apartments: 7-10%

• Villas: 4—6%

• But taking into account increase in asset value the overall profitability of villas is often taller — especially when buying at the start and exiting at the peak of the cycle.

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Conclusion

Villas and townhouses in Dubai are investing not in square meters, but in a lifestyle, stable demand and limited supply. Yes, apartments are more profitable, but villas give investors more: price increases, stable demand, high-quality tenants and protection from market shocks.

If your goal is diversified portfolio With long-term benefits, ignoring the villa segment in 2025 is a mistake. Especially in locations with underestimated potential, where the shortage is only getting worse.