ValuStrat, which specialises in real estate consulting and research, said that apartment prices in Dubai recorded an increase of 18.6% in a year, as they rose at this rate at the end of last February on an annual basis, compared to prices in the same month of 2023, while villa prices doubled at a record rate within 3 years. It increased by 28% year-on-year.
“ValuStrat” added, in its report for the month of February, a copy of which Al Bayan obtained, that the VPI (ValuStrat Price Index) for the month of February recorded 164.1 points, an increase of 23.1% on an annual basis, with a monthly increase of 2.1%, and it rose The index reading for villas reached 206.1 points, and apartments 136.6 points, compared to 100 basis points in January 2021.
Gains
According to ValuStrat, whose data is based on a fixed basket of properties that represent the market, the value of highly sought-after villas has doubled in three years, while apartment prices have risen by slightly more than a third on average, while the residential apartment market has witnessed an acceleration. In prices increased by 1.9% on a monthly basis, and a record expansion of 18.6% on an annual basis.
The highest annual growth in capital gains was recorded for apartments in Discovery Gardens (30.7%), The Greens (27.9%), Palm Jumeirah (27.4%), Town Square (23%), and Dubai Production City (22.9%).
Capital gains for villas also increased by 2.4%, compared to January, and 28% since last year, and the best performing villas on an annual basis were the villas in the highly desirable Jumeirah Islands (36.1%) and Palm Jumeirah (35.1%). , Dubai Hills Estate (33.6%), and Mudon (29.6%).
Off-plan contract registrations jumped by 32.6% annually and 5.7% monthly, and transaction volumes for ready homes increased by 30.5% annually and 9% monthly, representing a minority share of 36.9% of total residential unit sales for this month (February 2024).
Forefront
The month of February witnessed 20 deals for ready properties worth more than 30 million dirhams, located in Emirates Hills, Palm Jumeirah, District One, Jumeirah Bay Island, and Dubai Hills Estate.
Overall sales in February were topped by residential properties developed by Emaar (13.3%), Damac (9.9%), Danube (7.6%), Sobha (5.7%), Nakheel (3.7%), Select Group (3.4%), and Dubai Properties. (3.3%), and Azizi Development (3%).
The most important locations that witnessed transactions on the plan (map) included projects located in Jumeirah Village Circle (11.8%), Dubai Maritime City (11.4%), Business Bay (6.4%), and Buqdra (4.5%), while the majority of ready-made homes Sold were in Jumeirah Village Circle (9%), Business Bay (7.2%), Dubai Marina (5.9%), Downtown Dubai (5.8%), and Dubai Hills Estate (5.1%).
Peak 2014
Haider Tuaima, head of the real estate research department at ValuStart, told Al Bayan that the prices of villas in the Palm Jumeirah area exceeded the 2014 peak by 64%, and this applies to most of the freehold areas in Dubai (more than 90%), which exceeded the 2014 peak by 64%. The prices of villas peaked in 2014, with the exception of Al Furjan area.
Tuaima added, as for the apartment, the prices of apartments in the Palm Jumeirah area are still 5.6% lower than the 2014 peak, and this applies to all apartments in the market, which are all still below the 2024 peak. It is expected that the prices of apartments in the Palm Jumeirah area will exceed, which is considered... The best performing market in the peak of 2024, over the coming months.
Tuaima pointed out that Dubai still provides diverse investment opportunities for all levels of investors, starting from the average investor, all the way to the ultra-high-net-worth individuals, stressing that the Dubai market still enjoys diversity in investment options, whether in terms of attractive rental returns or capital gains.
Palm Jumeirah
According to the report, the Palm Jumeirah area still has the highest average price per square foot for villas at 4,713 dirhams per square foot, while the average price of a standard villa in the region reaches 23.5 million dirhams. The Emirates Hills area came second with an average price of 3,585 dirhams per square foot, while The average price of a standard villa is 60.9 million dirhams, and third is the Dubai Hills Estate area, with an average price of 2,155 dirhams per square foot, while the average price of a standard villa in the region reaches 10.7 million dirhams.
The Jumeirah Islands area ranked fourth with an average price of 2,112 dirhams per square foot, while the average price of a standard villa reached 11.1 million dirhams, and the Meadows area ranked fifth with an average price of 1,928 dirhams per square foot, while the average price of a villa reached 7.3 million dirhams.
Burj Khalifa
The report data showed that the Burj Khalifa area still has the highest average price per square foot for apartments, at 3,063 dirhams per square foot, while the average price of a standard apartment in the region reaches 2.8 million dirhams, and the Downtown Dubai area came second, with an average price of 1,935 dirhams per square foot. The square, while the average price of a standard apartment is 1.6 million dirhams, and third is the Palm Jumeirah area, with an average price of 1,760 dirhams per square foot, while the average price of a standard apartment in the region reaches 3 million dirhams.
The Jumeirah Beach Residence area came in fourth place, with an average price of 1,528 dirhams per square foot, while the average price of a standard apartment was 2.9 million dirhams, and fifth was (The Views) area, with an average price of 1,330 dirhams per square foot, while the average price of an apartment was 1.7 million dirham
For a detailed perspective on the property market, visit: Dubai - VPI Residential Capital Values - February 2024
