ValuStrat, which specializes in real estate consulting and research, said that apartment prices in Dubai recorded a record rise last March by 20.1% on an annual basis, and the growth rate of apartment market prices is steadily approaching the growth rate in the villa market, as the latter rose by 29.6% over the year. Annual basis.
“ValuStrat” added in its report for the month of March that the ValuStrat Price Index for the month of March recorded 167.5 points, an increase of 24.7% on an annual basis, with a monthly increase of 2.1%, and the reading of the index for villas rose to 211 points, and for apartments 139.2 points. , compared to 100 basis points in January 2021.
Gains of villas and apartments
According to ValuStrat, whose data is based on a fixed basket of properties that represents the market, according to its description, apartment prices rose by 1.9% on a monthly basis, and recorded a record annual growth of 20.1% in March. The areas that witnessed the highest price growth included: Discovery Gardens (32.6%), The Greens (29.8%), Palm Jumeirah (29%), The Views (24.8%), and Town Square (24.5%).
The capital gains of villas were 2.4% compared to February and 29.6% since the previous year, and it is worth noting that the best annual performance includes villas in highly sought-after areas such as Palm Jumeirah and Jumeirah Islands, both of which are witnessing growth of 37.7%, along with Dubai Hills Estate ( 34.8%), Mudon (30.2%), and Arabian Ranches (29.2%).
Off-plan contract registrations increased annually by 14%, with a monthly growth of 18.2%, while the volume of ready-to-use housing transactions witnessed a slight change year-on-year, as it rose by 4.8% monthly, representing only 34.2% of the total monthly residential unit sales.
Emaar is in the lead
The month of March witnessed 15 deals for ready properties worth more than 30 million dirhams, located in Palm Jumeirah, Dubai Hills Estate, Jumeirah Golf Estates, Emirates Hills, and Jumeirah Bay Island.
Overall sales during the month were topped by residential properties developed by Emaar (14.9%), Damac (10.9%), Azizi Developments (6%), Sobha (5.6%), Nakheel (4.4%), Dubai Properties (4%) and Danube (4%). , Binghatti (3.2%), Samana (2.5%), Diyar (2%).
The most important locations that witnessed transactions on the plan (map) included projects located in Jumeirah Village Circle (10.9%), Zabeel First (6%), Meydan One (5.7%), and Business Bay (5.6%), while the majority of ready-made homes Sold out were in Jumeirah Village Circle (9.3%), Business Bay (7.4%), Downtown (5.3%), and International City (4.4%).
Apartments to peak in 2014
Haider Tuaima, head of the real estate research department at ValuStrat, told Al-Bayan that during the past three years (after the Corona pandemic), villas were rising at much higher rates than apartments, nearly three times, but today this difference is shrinking on a monthly basis. Indeed, it is still... Villas are rising at a higher rate than apartments, but we expect them to move closer together in the coming months.
He added that the apartment market recorded last March the highest record annual increase at 20.1%, which is the largest in 10 years since the peak of 2014. These numbers are a translation of the large volume of demand for apartments, especially since villas and townhouses are considered expensive today, which prompted investors to move to... Real estate is smaller in size and less expensive.
Haider stated that the real estate market in Dubai is heading to a new historical peak in prices during the year 2024, as villas have already surpassed the 2014 peak, and it appears that with the monthly rates of increase in apartment prices, the 2014 peak will be surpassed in the coming months, which puts the market facing a new peak that exceeds all previous numbers. .
Average price per foot for villas
According to the report, the Palm Jumeirah area still has the highest average price per square foot for villas at 4,855 dirhams per square foot, while the average price of a standard villa in the region reaches 24.2 million dirhams. The Emirates Hills area came second with an average price of 3,675 dirhams per square foot, while the average price for a standard villa in the region is 24.2 million dirhams. The price of a standard villa is 62.4 million dirhams, and third is the Dubai Hills Estate area, with an average price of 2,211 dirhams per square foot, while the average price of a standard villa in the region reaches 11 million dirhams.
The Jumeirah Islands area ranked fourth with an average price of 2,175 dirhams per square foot, while the average price of a standard villa reached 11.4 million dirhams, and the Meadows area ranked fifth with an average price of 1,968 dirhams per square foot, while the average price of a villa reached 7.4 million dirhams.
Average price per foot for apartments
The report data showed that the Burj Khalifa area still has the highest average price per square foot for apartments at 3,112 dirhams per square foot, while the average price of a standard apartment in the region reaches 2.9 million dirhams, and the Downtown Dubai area came second with an average price of 1,970 dirhams per square foot. While the average price of a standard apartment is 1.6 million dirhams, third is the Palm Jumeirah area, with an average price of 1,800 dirhams per square foot, while the average price of a standard apartment in the region reaches 3.1 million dirhams.
The Jumeirah Beach Residence area ranked fourth with an average price of 1,548 dirhams per square foot, while the average price of a standard apartment reached 2.9 million dirhams. The Views area ranked fifth with an average price of 1,360 dirhams per square foot, while the average price of an apartment reached 1.7 million dirhams.
For a detailed perspective on the property market, visit: Dubai - VPI Residential Capital Values - March 2024
