Dubai Property Investment Guide: Apartment vs. Villa

Which One Should You Invest in? An Apartment or Villa in Dubai

Dubai real estate has shown tremendous growth over the past 8 to 10 years. There is no one reason for this. Several factors like the ever-growing population and launch of off plan projects contribute towards the boom the property market is witnessing. The year 2023 saw an amazing number when it came to sales. There was a total of over 118K residential sales that amounted to over AED 500 billion. There are many residential projects in Dubai and new ones are launching each day.

The types of properties available in Dubai include apartments, townhouses and villas. For individuals who have recently relocated to Dubai or are considering investment opportunities in the city, determining the most suitable project or property type can be quite challenging. In this blog, we will provide a comprehensive guide about what factors to consider and how to make this decision.

Let's start with a few stats though. In 2023, out of 118K total sale, 92K were for apartments and 26K for villas and townhouses. As the new year has started, this trend is continuing. February 2024 saw a total of 10,941 sales with 9K apartment sales and just 2K for villas and townhouses. These numbers reflect that apartments are a more popular choice among Dubai residents and investors. However, according to industry experts, that is not the case.

People who wish to reside here or just looking for an investment, both want larger houses as well. But there is a huge gap between the supply and demand of townhouses and villas. In Feb 2024, over 10,000 new units were added to the market in the form of off plan projects and most of them were apartments. However, there is recent good news about three new major communities coming to the real estate market soon that will boost the supply of villas.

Let's move on to the choice between apartments and villas now. We will start with the analysis of the differences between the two property types.

A Comparison Between Apartments & Villas

Space and Privacy

Villas generally provide more space than apartments. They usually have multiple bedrooms, living areas, and often private outdoor spaces like gardens and pools. This affords residents greater privacy and the freedom to customize their living environment. Conversely, apartments tend to be more compact. Residents can enjoy access to shared amenities like gyms and pools.

Maintenance and Amenities

Villas typically demand more maintenance due to their larger size and outdoor areas. While some people may prefer the autonomy of property upkeep, others may find it burdensome. If you own an apartment, you will benefit from maintenance services provided by building management.

Cost

In Dubai, apartments are usually more budget-friendly than villas. This stands true both in terms of purchase price and ongoing maintenance. This makes apartments appealing to first-time buyers, young professionals, and investors seeking lower entry costs and potentially higher rental returns.

Lifestyle and Community

The choice between apartment and villa often hinges on lifestyle preferences. Apartments suit individuals or small families seeking an urban lifestyle with convenient access to amenities and entertainment. Villas cater to those desiring a quieter suburban lifestyle with space for outdoor activities and family gatherings.

Top Considerations Before Buying a Property

Neighborhood

The most important factor is the location of the property when you are choosing where you want to live or invest. You need to factor in the commute and travel times especially if you are going to live there.

Affordability

Your budget plays a crucial role in your decision-making process. As previously mentioned, villas typically come with higher price tags. Don't forget to factor in expenses such as maintenance fees, utility bills, and other associated costs.

Facilities

Evaluate the facilities and amenities offered within the property or community, such as swimming pools, gyms, parks, and security features. These amenities can enhance your quality of life and contribute to the property's value over time.

Most Popular Apartment Communities

Dubai Marina

Dubai Marina is among the most sought-after locations in the city. This beautiful waterfront area with high-rise buildings attracts a lot of young residents to move into this place. It offers great connectivity as it is right on Sheikh Zayed Road. Traveling to and from Dubai Marina is also very convenient because of its close proximity to the Dubai metro. Apartments for sale in Dubai Marina come well-equipped with all the modern facilities and amenities which also adds to its charm. Some of the iconic projects in Dubai Marina include Vida Residences and Address Residences. You can find studio to 5 bedroom apartments in Dubai Marina. The average price of a studio apartment in Dubai Marina is AED 961.8K while for a one bedroom apartment is AED 1.43 million.

Emaar Beachfront

Emaar Beachfront is located on Dubai Harbour in close proximity to JBR and Palm Jumeirah. It provides an escape from the hustle and bustle of the city and yet is close to all the major destinations. This neighborhood is easily accessible via Sheikh Zayed Road which makes commuting to and from Emaar Beachfront a breeze. The property types include 1 to 4 bedroom apartments as well as penthouses. The most popular projects include Palace Beach Residence and Grand Bleu Towers. The average price of a one bedroom apartment for sale in Emaar Beachfront is AED 3.27 million.

Downtown Dubai

Downtown Dubai is definitely the heart of the city. This is where the young and energetic people want to live. The easy access to all the world class amenities and easy connectivity makes it one of the most coveted areas to live in. This is one of the most top performing areas in the city almost every month it comes to sales transactions. You will find studios and 1 to 4 bedroom apartments for sale in Downtown Dubai. The average price of a studio apartment in Downtown Dubai is AED 1.35 million.

Business Bay

As the name suggests, this area is the business hub of Dubai. However, there are many residential projects in Business Bay suitable for anyone who wishes to live in the bustling atmosphere. Apartments in Business Bay come equipped with the most modern amenities and facilities. You can find studios, 1 to 4 bedroom apartments for sale in Business Bay. It is a well-connected area which is easily accessible by Sheikh Zayed Road. A nearby metro station provides convenient access to Business Bay and ensures commuting is hassle-free. The average price of a studio apartment in Business Bay is AED 1.16 million.

Jumeirah Village Circle

JVC is one of the best performing areas in Dubai and is very popular among residents of the city. The location, affordability and range of apartments available here is what attracts people here. You can find spacious studios and 1 to 4 bedroom apartments for sale in JVC. This is a family friendly community with top-class amenities within an easy reach. The average price of a studio apartment in JVC is 603K which is a great price considering other communities in the city. It is a beautiful place to live with a peaceful and tranquil environment and traveling to and from here is also very convenient. Areas like Marina, Palm Jumeirah are within a few minutes' drive from Jumeirah Village Circle.

Most Coveted Villa Communities

Palm Jumeirah

Palm Jumeirah is an iconic real estate development in Dubai. The 17 fronds of the Palm have some of the most luxurious villas in the city. Most of the properties are beachfront and provide stunning views of the ocean. These stunning homes offer premium amenities to their residents. Moreover, the neighborhood has everything whether you are looking for retail, dining or recreational destinations. Palm Jumeirah is also well connected to the major destinations in Dubai. You will find spacious 3 bedroom to massive 7 bedroom villas on the Palm. The average price of a 4 bedroom villa for sale in Palm Jumeirah is AED 24 million.

Dubai Hills Estate

DHE has soon become a favorite among the residents and investors alike. The simple beauty of the location, the premium facilities, a golf course and easy accessibility of the location makes Dubai Hills Estate so popular. The villa projects in DHE include Park Gate, Sidra Villas and Address Hillcrest. You can find 3 to 5 bedroom villas for sale in Dubai Hills Estate with spacious layouts and contemporary designs. The average price of a 4 bedroom villa in Dubai Hills Estate is AED 10.33 million.

Damac Hills

Damac Hills is a premium neighborhood located on Hessa Street. The neighborhood has apartments and villas. The villas here boast stunning designs, spacious living areas and stunning interiors. You can find 2 to 7 bedroom villas for sale in Damac Hills. Damac Hills has every amenity and facility readily available for its residents. Recently, a mall has also opened in the community bringing

a go to retail destination for the residents. The average price of a 4 bedroom villa in Damac Hills is AED 4 million.

Jumeirah Park

Jumeirah Park is a popular villa community in Dubai with lush green surroundings and a peaceful environment. This area is favored by many families in Dubai because of the tranquil atmosphere and all amenities within the community. This neighborhood has some of the best schools and nurseries. You will find 3 to 6 bedroom spacious villas with terraces and ample parking spaces in Jumeirah Park. The average price of a 4 bedroom villa for sale in Jumeirah Park is AED 6.1 million.

Tilal al Ghaf

Tilal al Ghaf is a premier real estate destination in Dubai by Majid Al Futtaim. This community has townhouses and villas and is still developing with new projects coming out this year as well. The villa developments in Tilal al Ghaf include Alaya Gardens, Harmony, Serenity Mansions. You will find 4 to 8 bed villas for sale in Tilal al Ghaf. The average price of a 4 bedroom villa in Tilal al Ghaf is AED 5.33 million.

Conclusion

Investing in Dubai is a lucrative opportunity all in all. Whether you choose an apartment or a villa for an investment you stand to earn up to 7 to 8% rental yields. You also stand to gain a capital appreciation of up to 10%. Don't wait up and get in touch with ERE Homes real estate agency today to find you your dream home!