Over the past three years, Dubai’s real estate market has witnessed a transformation, and at the heart of it are villas and townhouses. Prices in this segment have nearly doubled, and homeowners are seizing the opportunity by renovating older properties to meet the rising demand for modern, spacious homes.
From Dh3.4M to Dh6.6M: A 92% Surge in Value
According to data from the Dubai Land Department (DLD), the average sales price for villas and townhouses has skyrocketed by 92% since May 2022, rising from Dh3.475 million to Dh6.682 million. Even in the past year alone, prices have jumped 35%, underlining the continued strength and resilience of this niche market.
The Buyer Mindset: Bigger, Better, and Move-In Ready
Today’s buyers in Dubai are not just looking for space, they’re looking for turnkey solutions. With lifestyles shifting post-pandemic, the demand for larger, ready-to-move-in homes in family-friendly communities has intensified. Locations like Arabian Ranches, Jumeirah Golf Estates, and Victory Heights are hot spots for these high-value transactions.
“Buyers want space, established communities, and upgraded homes they can move into immediately,” says Lewis Allsopp, Chairman of Allsopp & Allsopp. “The market isn’t just growing, it’s setting new investment benchmarks.”
The Rise of Renovations
With such high demand for modern homes, sellers are tapping into a new strategy: renovate and resell. Many of Dubai’s older villas offer generous layouts and plots that newer homes often lack. By modernizing interiors and adding contemporary finishes, sellers are maximizing property value, and buyers are happy to pay a premium to avoid the hassle of doing it themselves.
“We’re seeing more owners invest in upgrades before listing their homes,” says Allsopp. “It’s a win-win, sellers increase their returns, and buyers get the lifestyle they’re after without the wait.”
Market Momentum Continues in 2025
In May alone, the DLD recorded Dh54 billion in property transactions, marking an 11% increase from the previous month. Supply is also catching up: over 6,000 villas were delivered in 2024, and 14,600 are expected by year-end 2025, according to Asteco.
Still, the demand for quality, upgraded homes remains higher than supply, especially in established communities. That gap is exactly what’s driving this surge in renovation activity.
Final Thoughts
Dubai’s villa market is more than just booming, it’s evolving. Buyers are prioritizing lifestyle, space, and convenience, while sellers are stepping up to deliver. If you’re a homeowner with an older property, now may be the perfect time to renovate and capitalize on today’s high-value market. And if you’re a buyer? Be ready to move fast, especially if a turnkey villa in your dream community hits the market.
