Dubai’s housing market continued to expand in the third quarter, with prices and sales increasing as more people migrate to the city, according to a report Tuesday from ValuStrat Dubai.
Prices of villas in Dubai rose nearly 20% annually between July and September, as well as 7.6% compared to the second quarter, according to the report from the business and real estate consultancy. In addition, values “surpassed peaks seen in 2014 by 2.6%,” according to the report. Palm Jumeirah, Jumeirah Islands and Dubai Hills Estate were the highest-performing areas.
“The VPI [ValuStrat Price Index] grew a record 6.1% quarter over quarter to reach 96.6 points, 15.1% higher than last year,” the report said, referencing the company’s proprietary index.
Meanwhile, prime properties registered a 6.6% quarter-over-quarter uptick and a 16.5% annual increase, the figures showed. The VPI for prime villas reached a new 10-year high of 135.7 points with capital gains of 20.2% year over year and 8.5% quarter over quarter.
More people are buying properties off plan, the data showed. Deals rose 19.1% compared to the third quarter of 2022, and 2% quarter over quarter. The average price of such a home jumped 13% annually to AED 2.5 million (US$680,641).
Existing home sales were up 17.7% year over year, but dipped 5% compared to the previous quarter, for a total of AED 26.4 billion.
With all this action on the housing market, it’s no surprise that Dubai is also seeing a population influx. More than 1 million people have taken up residence in the city since 2014, according to the report. And the pace of migration has only increased.
“Net migration in the initial nine months of 2023 surpassed the entirety of 2022, showing a 2.2% annual net population increase as of end of September 2023, as opposed to 2.1% annual growth in 2022,” according to the report.
For a detailed perspective on the property market, visit: Dubai - Real Estate Review Q3 2023