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Dubai real estate: Property boom continues as luxury home demand skyrockets, says new report

The positive performance of Dubai’s property market reflects investor confidence in the city’s long-term growth prospects.

Top performing areas for villa price growth included Jumeirah Islands at 36.1%, Palm Jumeirah at 35.1%, Dubai Hills Estate at 33.6%, and Mudon at 29.6%.

Dubai’s residential real estate market has shown resilience and growth, with the latest data from ValuStrat indicating significant increases in capital values across various segments.

According to the February 2024 report from ValuStrat, the Dubai Residential Capital Values Price Index (VPI) registered a robust annual increase of 23.1 per cent, reaching 164.1 points, with a monthly uptick of 2.1 per cent.

This surge in value reflects the sustained demand and investor confidence in the emirate’s real estate sector, the report revealed.

Jumeirah Islands, Palm Jumeirah lead growth in Dubai villas.

The report further revealed a notable trend: highly desired villas have witnessed a staggering 28 per cent increase in capital gains compared to the previous year, with some areas, such as Jumeirah Islands and Palm Jumeirah, experiencing even higher growth rates.

Villa capital gains were up 2.4 per cent compared to January and 28 per cent since last year. The top annual performers were villas in highly desired Jumeirah Islands (36.1 per cent), Palm Jumeirah (35.1 per cent), Dubai Hills Estate (33.6 per cent), and Mudon (29.6 per cent).

Discovery Gardens, The Greens peak over 27 per cent

Similarly, the apartment submarket has seen remarkable growth, with prices increasing by an average of 18.6 per cent annually.

This surge is particularly pronounced in areas like Discovery Gardens and The Greens, where year-on-year capital growth rates exceed 27 per cent, the report said.

Discovery Gardens saw the highest annual increase in apartment capital growth, reaching 30.7 per cent. Image: Property Finder

The apartment submarket saw prices accelerate at 1.9 per cent monthly and expand a record 18.6 annually.

The highest year-on-year capital growth in apartments was recorded in Discovery Gardens (30.7 per cent), The Greens (27.9 per cent), Palm Jumeirah (27.4 per cent), Town Square (23 per cent), and Dubai Production City (22.9 per cent).

20 deals over AED30 million recorded in February

Moreover, the report sheds light on transactional activities in the market, with 20 transactions of ready properties priced over AED30 million observed in February alone.

Developers contributing to these transactions include Emaar, Damac, Danube, and Sobha.

However, the majority of ready homes sold were in Jumeirah Village Circle (9 per cent), Business Bay (7.2 per cent), Dubai Marina (5.9 per cent), Downtown Dubai (5.8 per cent), and Dubai Hills Estate (5.1 per cent).

The off-plan segment also demonstrated resilience, with a notable increase in Oqood (contract) registrations, jumping 32.6 per cent annually and 5.7 per cent monthly.

The positive performance of Dubai’s real estate market reflects investor confidence in the city’s long-term growth prospects, the report said.

 For a detailed perspective on the property market, visit:  Dubai - Real Estate Review Q4 2023