Average property prices in Dubai increased by nearly 17 percent during 2021, an annual growth rate not seen since 2014.
The ValuStrat Price Index witnessed monthly capital growth for villas in Dubai of 2.5 percent, with apartments registering growth of just below 1 percent.
However, the valuation-based index, which covers Dubai’s residential market, was just 1.3 percent above the same period in 2019 after the market slumped in 2020 due to the impact of the global coronavirus pandemic.
On Wednesday, a new report issued by the Dubai Land Department (DLD) revealed that Dubai’s real estate market recorded 84,772 transactions worth AED300 billion ($81 billion) in 2021.
Supported by the government’s economic stimulus packages and the emirate’s hosting of Expo 2020 Dubai, the sector continued to draw investors from around the world, it said.
ValuStrat said that most apartments in Dubai saw single digit annual gains between 0.9 and 8.8 percent, while some areas were still in negative territory such as Jumeirah Village (-4.7 percent) and Dubai Sports City (-1 percent).
However, Palm Jumeirah and Jumeirah Beach Residence (pictured below) saw apartment prices rise 19.4 percent and 15.6 percent respectively.
For villas, top annual performers remained in gated communities such as Arabian Ranches (36.5 percent), Jumeirah Islands (36.3 percent), The Lakes (33.6 percent) and Emirates Hills (32.9 percent).
ValuStrat said villa prices in Dubai surpassed pre-pandemic levels, with Palm Jumeirah just 1.5 percent away from its 2014 peaks.
According to ValuStrat’s report, December sales transaction volumes were down 20.1 percent when compared to the previous month but were still 51.7 percent higher than the same period last year.
Month-on-month performance saw cash and mortgage sales of ready properties decline 20.6 percent and off-plan Oqood (contract) registrations fall by 19.5 percent, representing 50.4 percent of overall transactions.
December saw 17 transactions valued over AED30 million while one such transaction of a villa located in Jumeirah Bay Island sold for AED92 million.
Topping the sales charts in December were properties developed by Emaar (24.9 percent), Damac (10 percent), Nakheel (5.4 percent), Sobha (4.8 percent), Dubai Properties (4.6 percent) and Danube (3 percent).
Top off-plan locations transacted in included projects in Sobha Hartland (9.4 percent), Downtown Dubai (9.3 percent), Business Bay (9.1 percent) and Dubai Harbour (9 percent).
Most transacted ready homes were in Business Bay (9.4 percent), Jumeirah Village (7.7 percent), Dubai Marina (7.6 percent), Palm Jumeirah (4.3 percent) and Dubai Hills Estate (4.1 percent).