Flexible working fuels demand for Dubai villa developments

Developers revealed plans for new villa communities throughout Dubai as the Cityscape real estate convention returned after missing a year owing to the coronavirus pandemic.

Estate agents were full of confidence at the event, which has been a staple in the emirate for two decades.

They said a recovery from a surplus of properties and a downturn in the market owing to worldwide economic uncertainty was well under way.

Cityscape Dubai may not be on the scale of previous years, but if the number of new communities on sale on its first day is anything to go by, the market has turned a corner.

At Damac Lagoons, 6,000 new villas are planned on a former golf course near Remraam and Damac Hills. They are due to become available by 2024.

“People want space and there has been a big influx of wealthy people from overseas into Dubai,” said Niall McLoughlin, a senior vice president at Damac.

“They have seen how the UAE has handled the pandemic and vaccinations and that has encouraged them to move here.

People overseas have been in lockdown for six months and now with more business being done remotely, they are relocating their families to the UAE.

“They want high-end luxury real estate and they want villas.”

A big message at the three-day conference is that the pandemic has changed the property market. When people were confined to their homes, demand grew for outdoor space and an indoor office.

The trend looks likely to continue. Experts at Dubai Exhibition Centre said new villa communities could be good news for renters.

“Once Damac Lagoons is open, that should have an impact on rental prices in Damac Hills and bring them down there,” said Mr McLoughlin.

“It is supply and demand, so that is what we would expect to see. In 2019 there was a glut of properties but that has now been absorbed.

“We are optimistic there is more of a balance now, but there will be a softening of the market again. That is how real estate works, it goes around in cycles.”

Mr McLoughlin said traffic surveys and urban planning completed well in advance of new community constructions were enough to ensure roads would not become overloaded in the future.

Spread across 145 square kilometres near Al Maktoum International Airport, Dubai South is one of the city’s largest new developments.

Phase one of The Pulse, a residential community of 288 homes, has three, four and five-bedroom villas starting from Dh1.35 million ($370,000).

“This is the new Dubai and the near future,” said Bakhit Alfalasi, marketing manager for Dubai South.

“Whatever people need, they will find it in Dubai South.

“People want to move further out so they can move freely.

“It is a new trend and we are giving them what they want and need. The community will have schools, health care and plenty of public transport.

“People can walk or cycle between these facilities, so it will encourage them to be outside.

“We all want space and privacy. It has become very important.”

Flexible working has fuelled the trend towards villa living in Dubai, with greater demand for a home office.

That is good news for developers, who can release villa communities on to the market in phases, as opposed to the case with vertical construction projects that can be filled only once fully complete.

Kory Thompson, of office suppliers IWG/Regus, said flexible working was here to stay and a major driver of new market trends.

“More companies will adapt to realise their employees can get on with their work at home without watching over them,” he said.

“The trend will move towards access for more professional work environments, away from the regular office space.

“People shouldn’t have to travel an hour to go to the office every day, maybe just twice a week.”

Flexible working has fuelled the trend towards villa living in Dubai, with greater demand for a home office