Dubai's Springs villa prices up 25-30%

A 2-bedroom unit now costs Dh1.6 million

Asking prices for villas in the Springs community have registered an increase of between 25 and 30 per cent year-on-year.

Data shared by PropSquare Real Estate, a Dubai-based realt estate agency, shows prices of two-bedroom villas rose to Dh1.60 million in October this year compared to Dh1.25 million same month last year while three-bed villas were priced at Dh2.4 million compared to Dh1.75 million.

In the third quarter 2012, prices jumped by 10 per cent to Dh1.60 million from Dh1.45 million in the second quarter, while three-bed villas rose nine per cent to Dh2.4 million from Dh2.2 million.

“There is huge demand for the Springs villas and people are ready to pay a premium for them,” says Faisal Baig, Director, PropSquare Real Estate.

Growing demand for villas is also resulting in a new problem for real estate brokers - owners are cancelling agreements at the last minute in the hope, or in some cases, in the face of better offers.

The tendency is more among villa owners in the Springs, Meadows, Arabian Ranches and Jumeirah Islands, where prices have gone up in the past three months. Stock in some of these villa communities is “quite” limited, resulting in a gazumping tendency among sellers.

“One major concern because of the growing demand is that villa owners are refusing to honor their words unless they have signed a memorandum of understanding with the real estate agency,” Baig adds.

According to properfinder.ae, average listed price for two bed units is  Dh1.6 million. Last year, the prices were hovering between Dh1.2m and Dh1.25 million.

Real estate agents say banks are comfortable to lend for these villas since the Springs villas are highly liquid assets.

The Springs comprises townhouses built around man-made lakes.

Properties here range from two-bedroom to four-bedroom townhouses and are located close to The Greens and The Meadows.

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