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Dubai property price rises slow but Palm Jumeirah villas pass 2014 peak

The pace of monthly price growth in the Dubai property market slowed down in January but Palm Jumeirah villas still achieved the milestone of surpassing 2014 peaks, according to new research.

Consultants ValuStrat said Dubai villa capital values increased 2 percent monthly and apartments saw marginal growth of just 0.4 percent.

The ValuStrat Price Index reached 77.1 points, up 1.1 percent since December and was 17.8 percent higher than the same period in 2021 but still lower than January 2014 by 22.9 percent.

All apartment locations monitored by the index saw positive annual gains except for Jumeirah Village Circle (-2.8 percent).

Best annual apartment performance registered in highly demanded Palm Jumeirah (20.9 percent), Jumeirah Beach Residence (17.1 percent), Burj Khalifa (12.1 percent) and Jumeirah Lake Towers (9.5 percent).

Villa capital values grew at a lower monthly rate, with some areas seeing price increases stagnate, ValuStrat noted.

On an annual basis, the top performers were Jumeirah Islands (39.1 percent), Arabian Ranches (38.5 percent), The Lakes (36.3 percent) and Jumeirah Village Triangle (34.4 percent).

ValuStrat said January saw villas located in Palm Jumeirah become the first to surpass their price peaks of 2014 while Emirates Hills is likely to follow suit, being just 12 percent below the same peak eight years ago.

January sales transaction volumes were similar to the previous month but were 116.3 percent higher than the same period last year.

The month-on-month performance saw cash and mortgage sales of ready properties decline 7.5 percent but off-plan Oqood (contract) registrations grew 7.6 percent, representing 54.2 percent of overall home transactions.

January also saw 16 transactions valued over AED30 million, with one such transaction of a villa located in Palm Jumeirah selling for AED87 million.

Topping the sales charts overall in January were properties developed by Emaar (22.5 percent), Nakheel (7.2 percent), Dubai Properties (5.5 percent) and Damac (5.4 percent).

Top off-plan locations transacted included projects located in Business Bay (12.8 percent), Sobha Hartland (9 percent), Dubai Harbour (8.5 percent) and Jumeirah Village (7.4 percent) while the most transacted ready homes last month were in Business Bay (8.4 percent),
Jumeirah Village (8.1 percent), Al Furjan (7.2 percent), Dubai Marina (5.8 percent), Jumeirah Lake Towers (4.6 percent), and Dubai Hills Estate (4 percent).