Dubai’s real estate market maintained its unprecedented growth track in September, as investors continued to rush in, new data showed on Monday.
The apartment submarket saw capital gains of 1.6 per cent monthly in September and expanded at a new record 11 per cent annually, the highest capital growth for apartments witnessed in a decade, data from Valustrat showed. The ValuStrat Price Index or the VPI for September 2023 accelerated 2.1 per cent monthly and 15.1 per cent annually to reach 96.6 points. Apartments were at 79.7 points, and villas at 123.6 points, this is compared to 100 points set in January 2014.
The VPI is a valuation-based price index constructed to represent periodic change in capital values and rental values experienced by typical residential and commercial properties.
Villa and apartment capital gains accelerate during September across the board. In addition to prime properties, cheaper homes within the mid-affordable segment witnessed increased valuations. Off-plan transactions declined, high growth in the ready (secondary) home market, the report showed.
The best apartment annual performance was recorded in Palm Jumeirah (20 per cent), The Greens (17.8 per cent), Discovery Gardens (17.1 per cent), Motor City (15.2 per cent), and Jumeirah Beach Residence (11.6 per cent). On average, apartments were 29.2 per cent below their mid-2014 price peaks. Villa prices increased 2.6 per cent when compared with August, and 19.8 per cent since last year. The top annual performers were villas in Jumeirah Islands (26.3 per cent), Dubai Hills Estate (24.4 per cent), Palm Jumeirah (24.2 per cent), and Emirates Hills (21.8 per cent). Apart from Al Furjan and Jumeirah Village Triangle, all villas and townhouses monitored by the VPI have surpassed their 2014 price peaks.
However, home sales declined 29.7 per cent monthly and 10.9 per cent annually. Off-plan Oqood (contract) registrations fell 55.7 per cent monthly 37.5 per cent annually, representing a minority share of 40 per cent of overall monthly sales. Ready homes transactions increased 15.5 per cent monthly and 24.4 per cent annually.
September 2023 saw 25 transactions of ready properties priced over Dh30 million, located in Palm Jumeirah, Emirates Hills, Jumeirah Bay, Al Barari, Dubai Marina, and Dubai Hills Estate. Topping the sales charts overall last month were properties developed by Emaar (17.2 per cent), Damac (13.1 per cent), Nakheel (8.1 per cent), and Dubai Properties (4.3 per cent).
Top off-plan locations transacted during the month included projects located in Arjan (13.9 per cent), Jumeirah Village (13.7 per cent), Business Bay (8.9 per cent), and Damac Lagoons (8.8 per cent). While the majority of ready homes sold were in Jumeirah Village (10.4 per cent), Downtown Dubai (6.4 per cent), Emaar South (5.7 per cent), and Business Bay (5.3 per cent). September saw Mudon break its individual record for the first time with the highest number of off-plan properties traded in one month.
With uncertainty remaining on global investors’ minds, Dubai remains a safe haven for investors due to its stability, transparency along with long-term property-linked visa options. Analysts believe that the trend is likely to continue.
For a detailed perspective on the property market, visit: Dubai - VPI Residential Capital Values - September 2023