Three new Dubai master communities set to boost villa and townhouse supply

All located along the E611 corridor, these exciting new areas will usher in a new phase of expansion for the emirate.

As Dubai’s off-plan sales market continues to soar, the emirate will see three new master communities emerge in 2024, boosting the much needed villa and townhouse supply to the market.

The new master communities include two new communities announced by Emaar – The Heights Country Club and Grand Club Resort – as well as a third from Damac, set for May. These projects are all in southwest Dubai along the E611 corridor and will welcome the next phase of expansion for the emirate.

In February, nearly 10,000 new units were launched in Dubai's Off Plan market, primarily consisting of apartments, while single family home launches represented around 15%. Despite this, there remains an under supply in this segment.

According to Property Monitor stats, prices in Dubai saw a modest monthly increase of 0.83%, aligning with forecasts of slower overall price appreciation, expected to reach 5-8% annually. The current average property price stands at Dh1,294 per sq ft, just under 5% higher than the previous peak in September 2014.

Despite subdued price appreciation, sales transaction volumes surged by 2.6% in February, reaching a record high of 11,913 sales, predominantly in the residential sector. Off Plan properties continue to dominate sales, particularly in the apartment segment. However, villa and townhouse sales remain stagnant, largely due to supply constraints.

Off Plan transactions accounted for 59.8% of the market share, with 6,384 transactions recorded in January. Resales represented 41.7% of transactions, with 4,970 sales in February, maintaining a relatively static market share.

Mortgage transaction volumes decreased by nearly 5% in February, with new purchase money mortgages comprising 46.1% of borrowing activity, averaging Dh1.77 million at a loan-to-value ratio of 75.6%. Refinancing and equity release loans saw a slight decrease in market share, while bulk mortgages decreased significantly.

“Developers seem to have taken notice of chatter in the market that villas and townhouses aren’t only in short supply in the secondary market, but also in the primary,” commented Charlie Bannan, Managing Director, haus & haus.

“Announcing their plans to bridge the gap is exciting from every perspective – buyers, existing investors/homeowners, tenants, real estate agents and anyone with their finger on the pulse for the future of Dubai’s economy.”

He added: “With a lot of investment coming from overseas, my suspicion is that anyone who has made capital appreciation or strong rental returns on apartments they have bought over the last couple of years might have the confidence and appetite to ‘go again’ on the new launches for townhouses and villas. 

“The government and developers’ efforts to continue to support the growing population is arguably the most promising sign for Dubai’s real estate future.”

For more data on this topic, check out the Off Plan 2023 Market Report.