Potential shortage of villas in Dubai

Fewer villas in Dubai will start coming onto the market in 2011, which could lead to a supply shortage after 2012, according to the newly appointed CEO of Landmark Properties.

Charles Neil told the press that around 50,000 homes in Dubai are expected to come onto the market next year, up from an average of around 30,000 properties in Dubai., but with villas making up just one in five homes being delivered, Neil anticipates a potential shortage in this sector of the market.

“In 2008 and 2009 the delivery has been pretty steady at about 30,000 units a year. In 2010, it looks as though it will jump to 50,000 units, of which villas will be 20 per cent, Neil told Emirates Business.

"If you're looking at villa prices, they actually went up a bit during the third quarter because there was no finance available. Now that finance has eased, prices and rents in places such as The Palms, Springs and Meadows went up between 8% and 5%, respectively."

“In 2010, it looks as though it [Dubai property supply] will jump to 50,000 units, of which villas will be 20%. And then in 2011, the number of villas drops to 5% and in 2012 to 3%, so there are very little villas coming on. You can see a shortage in the Dubai villa market."