Villa and townhouse prices in some of Dubai’s localities have jumped over 200 per cent in three years due to sustained demand amidst limited supply, large influx of families and inflow of millionaires into the emirate.
According to data shared by Allsopp & Allsopp, Al Waha and Nad Al Sheba have seen average prices of villas and townhouses jumping 265 per cent and 207 per cent, respectively, between April 2022 and May 2025.
Data showed that the average prices in Al Waha rose from Dh1.2 million to Dh4.4 million and from Dh3.07 million to Dh9.44 million in Nad Al Sheba during the comparative period.
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Among the other top-performing communities, prices of villas and townhouses in Dubai South Residential District and Dubai Investment Park have jumped 185 per cent in both communities from Dh1.4 million to Dh4 million and from Dh2.17 million to Dh6.19 million, respectively.
Similarly, Al Quoz, Jumeirah Islands, Dubai Sports City, Emaar South and Al Satwa have seen average villa and townhouse prices doubling since May 2022, rising between 121 per cent and 176 per cent.
This is a clear indicator of sustained demand, limited supply, and growing investor confidence in villa and townhouse communities in Dubai. A shift in buyer preference towards larger, more private living spaces has driven prices up significantly, underscored by a growth in population and more people wanting to enter homeownership on arrival in Dubai,” said Lewis Allsopp, chairman of Allsopp & Allsopp.
Demand for larger units, especially villas and townhouses, has been on the rise since Covid-19. The lockdown during the pandemic prompted many people in the UAE to look to larger properties, pushing demand higher for villas.
He said the influx of families moving to Dubai has been a key driver in the rising demand for villas and townhouses. “With a focus on space, privacy, and access to top-tier amenities and schools, family buyers are increasingly favouring suburban communities. This demand shift is putting upward pressure on prices, particularly in established and well-connected residential areas,” said Allsopp.
Allsopp and Allsopp’s chief said data primarily showed that those buying villas and townhouses are residents, both long-term expatriates and new arrivals looking to settle and own homes rather than rent, although high-net-worth foreign investors who are active in the luxury segment see the value in investing in the Dubai luxury market.
Secondary market dominates Dubai real estate
Sales transaction value in the secondary market surged by 46 per cent year-on-year, whilst the off-plan segment recorded a 25 per cent increase.
Average sales prices in the secondary market rose by 15 per cent, compared to just 5 per cent for off-plan properties.
This trend reflects a shift in buyer demand towards ready, quality stock, driven primarily by the ongoing shortage of available villas and townhouses across Dubai.
The Dubai Land Department (DLD) reported a 55 per cent increase in total villa and townhouse sales transaction value during the first six months of 2025, compared to a 22 per cent increase for apartments.
We have seen a remarkable shift in buyer focus towards the secondary market. With fewer new villas and townhouses entering the market, many buyers are now willing to pay a premium for high-quality, renovated properties in prime communities. In the five to ten million dirham price bracket, we’ve seen a 50 per cent increase in sales volume in the first half of the year. Even more impressively, the ultra-luxury segment, above ten million dirhams, has recorded a 113 per cent increase in sales volume,” Lewis Allsopp, Chairman of Allsopp & Allsopp said.
This level of activity is a clear sign of growing investor confidence and high-net-worth individuals choosing Dubai not just for lifestyle, but for long-term capital growth and return on investment. The secondary market is proving its strength, especially in the villa and townhouse space, where demand continues to outstrip supply,” he added.
Allsopp & Allsopp data corroborated this trend, recording a 79 per cent rise in total transaction value for villas and townhouses, and a 30 per cent increase for apartments.
Apartments accounted for 78 per cent of secondary market transactions by volume, with villas and townhouses making up 22 per cent.
However, villas and townhouses significantly outperformed in terms of price growth and value contribution, reflecting strong buyer appetite for family homes and the limited supply available in the market.
The demand has directly driven price increases, with Allsopp & Allsopp reporting a 49 per cent rise in the average sales price for villas and townhouses compared to H1 2024.
Communities such as Jumeirah Golf Estates, Arabian Ranches, and Tilal Al Ghaf have led transaction activity, highlighting the enduring appeal of well-established neighbourhoods that offer privacy, space and lifestyle-led amenities.
The shortage of newly built villas and townhouses has encouraged both investors and homeowners to renovate existing properties.
These upgraded homes are achieving premium resale values, with turnkey, move-in ready properties becoming increasingly popular among both end users and investors seeking strong return on investment.
