Realtors: Villas projects are an advanced option for tenants ... and the demand equation is in their favor now
Corona changes the rental map ... and villas are the first beneficiary
Villas have privacy and avoid sharing common facilities with others.
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Realtors said that the new Corona virus (Covid-19) pandemic has changed the rental map in the real estate sector, as tenants prefer villas over residential units, which raises the demand for them, and they have become an advanced option when searching.
They explained to Emirates Today that the demand equation has become in favor of the villas at the expense of the housing units, pointing out that staying in villas has become a good option in exchange for the housing unit, in light of a significant decline in the rental values of villas in conjunction with a price correction, and a large supply in the market .
They pointed out the special features of the villas, such as privacy and avoiding sharing common facilities with others, such as an elevator and a swimming pool, in addition to the low service fees, currently, for the villa in exchange for the residential unit.
Real estate interest
In detail, the CEO of "Harbor Brokerage and Real Estate Consulting", Muhannad Al-Wadi, said: “There was an imbalance between residential units and villas in the past, at a time when the real estate developer was targeting vertical construction to take advantage of the land, but in conjunction with the (Covid-19) crisis. (The situation has become different. "
Al-Wadi confirmed that there is a great interest from real estate developers currently to launch projects in the villa sector, especially the small ones, or what is known as (townhouses) or adjacent villas, which compete with the category of residential apartments.
He pointed out that working from home, applying physical distancing policies, and avoiding crowded areas, pushed the share of the villas sector required to rent in the real estate market higher, a deduction from the share of residential units, given the villa’s special areas that contribute to reducing exit from the house, which is something Not found in the housing unit.
good choice
Al-Wadi revealed that the demand equation has become in favor of the villas at the expense of the housing units, especially since most of the housing units offered in Dubai are directed to a privileged category, which makes housing in the villa a good option against the housing unit, especially if the rental values that have declined in the recent period are considered.
Al-Wadi explained that the competitiveness in this aspect is in the interest of the villas, especially with the increase in rental values of the luxurious residential unit, which in some of them exceed the value of renting the villa 150 thousand in the downtown areas, such as "City Walk" and "Blue Waters", for 60 thousand dirhams Rental value for a three-bedroom villa in areas like Dubai South.
He pointed to another advantage in villas, which makes them a first choice for the tenant, which is the low service fees, as it is considered 50% or more less in the villa, compared to its counterparts in the residential unit.
Rental map
In the same context, the Chairman of the Board of Directors of "Al Rouli Real Estate Company", Khamis Al-Zeyoudi, said that the crisis of "Corona" changed the rental and investment map of the real estate sector, as tenants and investors preferred villas over residential units, which raised the demand for them.
He added that the comparative advantages of the villas sector contributed to this trend, as villas are distinguished by more privacy than residential units, in which the tenant shares common areas with others, such as the elevator and the swimming pool, in addition to the presence of recreational areas that prevent families from going out of the house, and finally, the lower service fees for the villa. Against the housing unit.
Al-Zeyoudi confirmed that there was a significant decline in the rental prices of villas in conjunction with a price correction, and the presence of a large supply in the market, pointing out that there is great competition in the rental market, which led to a decline in rental prices for both residential groups, while prices varied from one region to another. Depending on the supply and services.
Average rents
In addition, the CEO of "Standard Real Estate Management Company", Abdul Karim Al-Mulla, confirmed the decline in rental values of villas in the past period, in conjunction with the increase in supply in the market. He said that the villas are already competing with residential units in terms of attractiveness of prices, given what the villas enjoy. One of the advantages of the superiority of residential units.
Al-Mulla gave examples of the average rental prices for villas in some areas of Dubai, which start from 80,000 dirhams at a minimum to 100,000 dirhams in Al-Wuheida, while the average rent for villas in Al-Mamzar ranged between 110,000 and 140,000 dirhams.
The rental values ranged in "Abu Hail" between 90 thousand and 110 thousand dirhams, in "Mirdif" between 80 thousand and 125 thousand dirhams, in the "Al Qusais" area between 85 thousand and 110 thousand dirhams, and in "Al Baraha" between 100 thousand and 130 thousand dirhams.
Lease value convergence
As for the real estate expert, Raad Ramadan, he said that the repercussions of the Corona pandemic and the increase in the supply of residential villas, compared to the volume of demand in the markets, contributed to the convergence or equality of rental values with residential units, which prompted the demand, finally, to rent villas, to benefit from the decline Rental prices, in addition to the benefit for families with a large number of individuals, from the room space in villas, compared to the residential unit.
For his part, the real estate broker, Majdi Abdel Aziz, confirmed that some renters, especially the families, have preferred to rent residential villas after the decline in prices, especially since the rental values of some old villas are actually less than the rental values of apartments equal to them in area or number of rooms .
He pointed out that the rental value of villas in the "Al-Jazzat" area in the suburb of Al-Raqqa in Sharjah is currently 85,000 dirhams, and it consists of four bedrooms, a large majlis, three bathrooms, a swimming pool and a garden, compared to 95,000 dirhams last year.
• Special features for villas, such as: privacy, avoiding sharing common facilities with others, in addition to the low service fees, which increase the demand for them, compared to the residential unit.
• Working from home, applying physical distancing policies, and avoiding crowded areas have pushed up the share of the villa sector required to rent in the real estate market.
• 60 thousand dirhams rental value for a villa in "Dubai South".
Minimum 80 thousand dirhams to rent a villa in Mirdif.
Tenants: The decline in villa rents has made them a preferred option
Tenants confirmed to Emirates Today that they prefer housing in villas now, due to the decline in rental values and the privacy they have in light of the Corona pandemic.
They explained that despite the high cost of villas related to electricity bills, the decline in rental values raised their competitiveness.
The tenant, Hamid Abdullah, said that he was looking for an apartment with three bedrooms, a hall, and two bathrooms.
He added that during the research, he noticed the existence of villa units offered with the same specifications, and there were more than one majlis and maid room available at rental rates ranging between 50 and 65 thousand dirhams, which prompted him to move to one of those villas, and prefer it to the apartment.
For his part, tenant Abdulaziz Shihab said that he decided to move to live in a three-bedroom villa, at a rental value of 60,000 dirhams, due to the convergence of rental values with the residential unit in which he resides.
He pointed out that the rental prices of villas have witnessed a significant decrease in the recent period, and are characterized by larger spaces for large families, as well as privacy compared to residential apartments within buildings.
In the same context, the tenant Saif Hashem said that he was surprised by the presence of villas offered for rent on the communication sites and specialized real estate pages, with values of 45 thousand dirhams, pointing out that these villas consist of three rooms and three bathrooms, which makes them less in terms of rental value, compared to the units. Residential component of the same number of rooms.
He explained that despite the high cost in villas, in relation to electricity bills, the decline in rental values raised their competitiveness and made them a preferred option, taking into account the larger spaces, privacy, and independent entrance, which is appropriate for families, especially the large number in light of the Coronavirus pandemic. ».
Advanced option
Alaa Masoud, Marketing and Sales Manager at Al-Rowad Real Estate Company, said that the villas sector has become more attractive after the Corona crisis, as the villa allows a kind of privacy for families.
Masoud confirmed that there is a growth in demand for villas for rent now, as it has become an advanced option for tenants who wish to take advantage of the advantages of villas, in exchange for residential units in a building, including the presence of recreational spaces inside the villa that enable the family to spend their time without going out, in light of the health crisis it is going through. The world, and reducing contact with others in common places.
Gradual decline in rental values
The Executive Director of Al-Somm Real Estate Company, Sufyan Al-Salamat, said that the recent period witnessed a great demand for villas with the decline in their rental values, supported by the entry of new projects and the impact of the repercussions of the pandemic.
He added that the average decline in rental values for residential villas is, finally, between 10 and 20%, compared to the same period of 2019.
He added that the decline in rental values was gradual, and began more clearly with the beginning of the second quarter of this year, which raised the demand for renting villas, and increased their competitiveness in the real estate rental sector map.
Al-Salamat pointed to the preference of a number of families, especially the Gulf and Arab, for villas because they have privacy commensurate with the circumstances of the Corona pandemic, compared to residential buildings, which include common facilities such as elevators, swimming pools and parking lots.
He explained that the rental values of different categories of villas have become converging, or equal to, with apartments, pointing out that the value of renting a new villa with two bedrooms, a hall, a maid's room, and four bathrooms in a new project in Sharjah is 65,000 dirhams, at a time when apartments are rented. With the same specifications, for the same amount, if not higher in different regions, with a big difference being the privacy of the villas.
Al-Salamat pointed out that the high electricity bill for villas was an obstacle for some, with their reliance on independent air-conditioning units, but the decline in rental values made the villas' competitiveness greater, while providing higher spaces and benefits, compared to residential units.
He mentioned that Al Somme Real Estate used to rent a villa with a view of the sea near the entrance to Ajman, consisting of three bedrooms, a maid's room, a majlis, and three bathrooms at 150,000 dirhams during the year 2019, but the rental value has now decreased to 120,000 dirhams. Renting a villa in the “Al Sharqan” area, consisting of four bedrooms, a majlis, a garden, and four bathrooms, for 100,000 dirhams, compared to 120,000 dirhams previously.
Most wanted citizens and Gulf citizens
The General Manager of "W Capital Real Estate Company", Walid Al-Zarouni, said that the rental values of villas have witnessed declines in varying proportions, gradually since the end of the first quarter of this year, at rates ranging between 10 and 15%, as some tenants moved to other areas, to benefit From the decline in prices of apartments with large areas, and the transfer of tenants from villas to other in modern projects, especially with the availability of new villas at low rental rates.
He explained that the largest percentage of the decline in rental values of villas is concentrated in the old units, which do not include many facilities and facilities, such as swimming pools and gardens, while citizens, followed by Gulf citizens and then Arabs, are the most demanding to rent villas now.
He stressed that the decline in rental prices for villas supported the demand for them, which are among the positive indicators that have caused a change in the residential rental market recently, affected by the repercussions of the Corona pandemic.
Al-Zarouni stressed that although the repercussions of the pandemic were among the reasons for the decline in rental values for villas, it supported a shift in demand for them, following the decline in their rents, to take advantage of the privacy it provides, compared to residential apartments.
He explained that the villas offer a private entrance, a parking lot, and a garden, while others offer a swimming pool or a gym.
He revealed that the rental value of some villas in the suburb of Al-Raqqa in Sharjah, consisting of four rooms and four bathrooms, ranged between 60 and 65 thousand dirhams, compared to the same period last year, when it ranged between 70 and 75 thousand dirhams.
Spacious housing and back yard
Real estate expert Hisham Al-Asaad said, "We have witnessed a gradual decrease in the average villa rents by about 7% during the current year compared to last year. However, when compared to the apartment rental sector, this decrease was less compared to the prices of residential units."
Al-Assaad explained that this decrease came due to the effects of the pandemic in our daily, social and professional life, as it was directed to work from home as a new rule, pointing out that this life change was translated by the real estate market, through a change in demand according to the type of housing, and the orientation has become to spacious housing suitable for the family. .
Therefore, the tenant became interested in the privacy of his family, and the need to secure the needs of his children inside the home.
He added that the villas feature a kind of recreational space, in addition to privacy while working remotely.
Al-Assaad stressed that the prevailing trend in the rental market has become concentrated in securing wider areas for housing, so many renters have turned to spacious villas, which contain a backyard for children, and larger rooms, with lower rents than before.
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