Expansive New Dubai Developments Along E611 Corridor Set to Boost Villa and Townhouse Inventory
As Dubai’s off-plan real estate market experiences remarkable growth, the emirate anticipates the emergence of three dynamic master communities in 2024. These developments, strategically positioned along the E611 corridor in southwest Dubai, promise to address the increasing demand for villas and townhouses.
Among the notable projects are two forthcoming communities by Emaar – The Heights Country Club and Grand Club Resort – alongside another from Damac slated for May. Positioned along the E611 corridor, these ventures signal a significant phase of expansion for Dubai.
In February, Dubai witnessed the launch of nearly 10,000 new units in the off-plan market, with a predominant focus on apartments. Despite this surge, there persists an undersupply in the villa and townhouse segment, reflecting the continued demand for such properties.
Property Monitor data indicates a modest monthly price increase of 0.83% in Dubai, aligning with projections of slower overall price growth, estimated at 5-8% annually. With the average property price at Dh1,294 per sq ft, just below the peak recorded in September 2014, the market remains dynamic.
Despite the tempered price appreciation, residential sales transactions surged by 2.6% in February, reaching a record high of 11,913 sales. Off-plan properties, especially apartments, dominate sales, while villa and townhouse sales face constraints due to limited supply.
Off-plan transactions command a significant market share, comprising 59.8% of total transactions in January. Meanwhile, resales account for 41.7% of transactions, maintaining a stable market share.
Mortgage activity witnessed a slight decline of nearly 5% in February, with new purchase money mortgages making up 46.1% of borrowing activity, averaging Dh1.77 million at a loan-to-value ratio of 75.6%. Refinancing and equity release loans experienced marginal decreases, while bulk mortgages saw a notable decline.
The concerted efforts of the government and developers to address the growing population’s needs signal a promising future for Dubai’s real estate landscape.
