APARTMENT VS VILLA: DEMAND AND SUPPLY IN UAE

Many people thinking of buying property in the UAE may find it tough to decide whether to buy an apartment or a villa. Before making a choice, it is crucial to consider your personal preferences and analyze the market activity.

UAE witnessed a sharp increase in sales of sea-view apartments and luxury villas because of decade-low prices. As a result, it somewhat re-energized the property market in the UAE that was experiencing a sharp decline in activity because of the pandemic. However, after easing of lockdowns, it is anticipated the market activity will pick up that will help stabilize prices of villas and apartments.

Read through this article to know more about the demand and supply of apartments and villas in the UAE. And most importantly, we will walk you through a detailed comparison between apartments and villas in UAE to help you evaluate your options and make a wise purchase decision. So, let's dig into it.

How Has The Demand and Supply For Apartments And Villas In UAE Changed In Recent Times?

There is an uptick in the demand for villas in UAE, especially the ones with pools and gardens. A variety of factors have caused the shift in demand. One of the major factors that brought the change in demand is the enforced lockdowns as a response to Covid-19.

People spending more time at home began to look for living spaces that provided spacious areas to indulge in different activities. They started looking for more private amenities that kept them in touch with the outdoors, having sufficient sunlight and fresh air, all from the comfort of their homes. Also, lower rental rates across the market attracted the residents to invest in spacious units.

If you talk about the supply of villas in UAE in recent years, it is estimated that around 14,500 villas are under construction and expected to be completed in the year 2022. In the forthcoming years, approximately 7,000 villas are expected to be delivered every year, indicating a significant increase in the supply of the townhouse units.

However, it is not to say that the demand for apartments in UAE has declined. The apartments in UAE became cheap during the Covid times, which has led to an increase in their demand. Also, apartments cost a lot less than a villa, so many people prefer to buy apartments in UAE.

Apartment VS Villa: Which One Should You Choose?

Pros And Cons Of Investing In An Apartment In The UAE

To make a purchase decision, you must weigh the pros and cons of living in apartments in the UAE. Here are some you should be familiar with:

Pros:

• Low Maintenance Cost

  One of the major advantages of living in an apartment in the UAE is the low maintenance costs. All the owners share the maintenance cost of the building. You have to pay a fixed amount monthly or yearly to cover the maintenance costs. So living in an apartment gives you peace of mind since you do not have to worry about getting the maintenance work done.

• Easy To Rent Out

  It would be a wise move to make if you are planning to get an apartment in the UAE for investment purposes. It is easier to rent an apartment in Dubai and gain benefits from the Dubai rental yields that rank among the highest in the world. Apartments in UAE situated in prime locations are much easier to rent out and offer you the best return on investment from renting.

• Location

  Most Apartments in UAE are located in the city center, close to shops, hospitals, schools, and public transport. Consequently, it saves you extra travel expenses and offers you ease and convenience to perform daily outdoor tasks.

Cons:

• Lack Of Space

  Apartments in UAE mostly come with a balcony only, giving you limited outdoor space. Plus, with several owners in the building, apartments also lack privacy and have limited allotted parking space.

• Regulations And Restrictions

  There are certain rules and regulations in every apartment building that you have to follow. So, living in an apartment, you may not have the liberty to renovate or make changes to the building as you please.

Pros And Cons Of Investing In A Villa In The UAE

Living in a villa in UAE comes with its pros and cons. Here is what you should know:

Pros:

• Ample Space

  A villa is spacious enough to accommodate larger families. It has extra parking space and a garden where your children and pets can play safely. They even have swimming pools and a terrace to let you enjoy leisure time.

• Freedom

  Living in a villa in UAE gives you the autonomy to decorate and renovate the place as you like. Being the owner of the property, you can make changes according to your needs and style. So you can have the space designed as you deem best.

• Peaceful And Quiet

  Villas in UAE are mostly located far away from the city’s hustle and bustle. If you like the peace and the quiet, living in a villa is the perfect choice for you. You could have a space to yourself where you can enjoy peace and calm.

Cons:

• High Maintenance Costs

  As the sole owner of the property, you will have to bear all the costs other than the maintenance costs and utility bills. You are responsible to fix any damage done or pay for any changes made to your property.

• Travel Expense

  Since villas in UAE are located far from the city center, your travel expenses may go higher. It is significant to consider this factor, especially when you are a frequent traveler to downtown.

What Option Should You Opt For?

Choosing between a villa and an apartment hugely depends on your personal preference. Villas in UAE are more suitable for large families looking for independence, privacy, and calmness. Apartments, on the other hand, are more suited to small families or single people.

Another important factor is your budget and how much you are willing to spend. For investment purposes, make sure to analyze the property market and invest accordingly to make the most out of your investment.