Demand for villas in Dubai surges because of lack of supply

16/08/2011 - Dubai Property News Posted by Neil King
Demand for villas in Dubai surges because of lack of supply

Dubai property investment could increase in the near future after new research found that a lack of new supply is boosting demand for villas in the city.Real estate consultancy firm Landmark Advisory said yesterday (August 15th) that demand is increasing in Dubai despite a decline in apartment sales of around two per cent.However, sales of villas have grown by 2.8 per cent in the last quarter, compared to the previous three-month period, reports the Khaleej Times.Michael Michael, director of Landmark Properties, told the news provider that rental figures elsewhere have fallen."A decline of three per cent has been witnessed across Abu Dhabi's apartment rents," he explained."Capital values have declined slightly - two per cent - even though few transactions have taken place. Therefore, it is predicted that over the next 12 months people will be drawn back from Dubai as rent prices and values continue to fall."The National Bureau of Statistics in the UAE said earlier this week that fuel and housing costs have dropped as inflation fell across the emirates.