Many of Dubai’s buyers are looking for bigger homes with lots of space, and opting for already upgraded homes instead of having to do it themselves
Published: Thu 05 Jun 2025,
Sellers in Dubai are renovating their older villas and townhouses to take advantage of strong demand as the average price has nearly doubled in the past three years.
“Since May 2022, the average villa and townhouse prices have skyrocketed by a remarkable 92 per cent, climbing from Dh3.475 million to Dh6.682 million in just three years. Even within the last year alone, these properties have seen a significant 35 per cent increase in sales price across villa and townhouse communities.
This is a clear indicator of sustained demand, limited supply, and growing investor confidence in villa and townhouse communities in Dubai,” said real estate agency Allsopp and Allsopp, quoting Dubai Land Department (DLD) data.
The Dubai real estate market is not just growing; it’s redefining investment benchmarks, especially for villas and townhouses. Imagine nearly doubling your investment in just three years; that’s the reality for villa and townhouse owners in Dubai.
“The under-supply of quality homes, particularly ready and upgraded villas, continues to fuel this growth. Buyers want space, established communities, and turnkey homes they can move into immediately which is exactly what communities like Arabian Ranches, Jumeirah Golf Estates and Victory Heights have,” said Lewis Allsopp, chairman of Allsopp & Allsopp
Lewis Allsopp
Upgrading older villas, townhouses
Dubai’s property market has seen massive demand, especially for bigger units such as villas and townhouses soon after the outbreak of the pandemic. The restrictions on the people’s movement by the authorities to contain the pandemic prompted residents to look for bigger units, pushing demand and prices of villas substantially higher.
Dubai Land Department (DLD) reported Dh54 billion in property sales transactions in May, an impressive 11 per cent increase from the previous month.
According to Asteco’s latest data, 6,375 villas were handed over in 2024 and 2,750 in the first quarter of 2025. It is expected that 14,600 villas will be handed over by the end of 2025.
The real estate agency noted that sellers are increasingly recognising the potential in renovating older properties, as these modern homes within their community now command significant prices.
“We’re now seeing more sellers upgrade and list their homes as the demand for bigger, newly renovated properties grows. Many of Dubai’s older homes offer unmatched space, with buyers opting for modernised and renovated homes rather than taking on the time and effort of upgrading themselves,” said Lewis Allsopp.
