ValuStrat Price Index

VPI

We pioneered the ValuStrat Price Index (VPI) to analyse and report the change in capital values experienced by a representative fixed basket of freehold residential and office units. By applying statistically determined weights to different locations and unit specifications, the VPI provides an accurate real-time monitor of the city’s property cycle – refining transparency with market intelligence. The VPI uses a comprehensive weighted sample representing more than 90% of all property types and is built by our expert RICS Registered Valuers.

Dubai 2017 Third Quarter Update

The quarterly review of Dubai residential property conveyed that one-third of the freehold villa locations monitored by the ValuStrat Price Index – Residential saw capital declines compared to half of freehold apartment areas. The commercial counterpart, ValuStrat Price Index – Office witnessed mix price movements within its monitored locations causing the overall values to remain relatively stable.

Dubai’s Residential VPI in-depth reports published and available on subscription basis:

VPI Snapshot
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Dubai Residential VPI

The third quarter 2017 VPI – Residential displayed an overall 1.2% annual decline in capital values, equivalent to 14.6% below 2014 peaks. However, sales price appreciation was seen in established prime locations such as Downtown Dubai, Palm Jumeirah (villas) and Emirates Hills, as values increased by between 0.6% – 1.2% quarterly and 1.8% – 8.1% annually. An exponential rise in sales of off-plan projects due for completion pre-Expo 2020, some in established locations, may now delay an expected near-term overall market recovery. Previously high yielding areas such as International City, Dubai Production City (IMPZ) and Motor City saw declining rents contribute towards quarterly capital declines of up to 2.8%.

Dubai Office VPI

Our VPI – Office index is a quarterly review of prices for a representative basket of freehold offices within 19 towers located in five central business districts. The Q3 VPI stood at 91.3 points, suggesting that average capital values for office space are 6.5% lower than the same period during the base year 2015, 3% higher than the same period last year and 0.2% lower than the previous quarter. Jumeirah Lake Towers office prices saw the highest annual increase in capital values of 13.3%, while Business Bay office prices fell by 10.9% YoY. DIFC office prices remained stable.