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Dubai real estate: Villa communities double in price, cross 2014 peaks

Dubai’s real estate market is experiencing a remarkable resurgence as villa communities witness a doubling in valuations since the pandemic, surpassing previous peaks in 2014, according to a new ValuStrat Price Index (VPI) report.

The apartment market is also witnessing an acceleration in capital values, although still below previous price highs, the report said.

According to the VPI, the overall market has seen a monthly acceleration of 2.4 percent and an annual growth of 16.8 percent, reaching 98.9 points.

“The last 36 months saw demand for prime villas and townhouses in highly desired established communities has soared to levels where valuations have more than doubled. The same cannot be said for apartments, though acceleration in capital gains is also evident,” Haider Tuaima, Director and Head of Real Estate Research told Arabian Business.

Dubai’s villa and townhouse communities see capital values nearly double since 2020

Apartments were valued at 81.3 points, while villas surged ahead at 126.9 points.

These figures are compared to the benchmark of 100 points set in January 2014 and the previous market cycle peak of 112.9 points in the same year.

The apartment submarket has witnessed a remarkable 12.5 percent annual capital growth, the highest in a decade, with a monthly acceleration of 2 percent.

The best-performing apartments were located in Palm Jumeirah, Discovery Gardens, The Greens, Motor City, and Town Square, with annual capital growth ranging from 15.8 percent to 22.1 percent.

Villa prices have also seen substantial increases, rising by 2.7 percent since September and 21.6 percent since last year.

The top-performing villa communities were Jumeirah Islands, Palm Jumeirah, Dubai Hills Estate, and Mudon, with annual growth rates ranging from 23.9 percent to 28.3 percent, the report said.

In contrast to the apartment submarket, villa and townhouse communities have seen their capital values almost double since the market trough of 2020.

Jumeirah Islands, Arabian Ranches, Palm Jumeirah, the Springs and Meadows, Emirates Hills, and Dubai Hills Estate have experienced high growth rates ranging from 85.9 percent to 115.2 percent.

Dubai’s off-plan property market declines

However, the off-plan property market has seen a decline in Oqood (contract) registrations, with a monthly decrease of 38 percent and an annual drop of 58.2 percent.

However, ready home sales have witnessed an increase of 3.1 percent monthly and 36.3 percent annually.

In October 2023 alone, 14 transactions of ready properties priced over AED30 million were recorded, bringing the total to 200 homes sold this year.

These transactions primarily took place in Palm Jumeirah, Emirates Hills, District One, Jumeirah Golf Estates, and Dubai Hills Estate.

Emaar, Damac, Nakheel, and Azizi emerged as the leading developers in terms of sales, with Emaar accounting for 17.4 percent of overall sales this month.

The top off-plan locations transacted in October included Damac Lagoons, Meydan One, Palm Jebel Ali, and Jumeirah Village Circle.

Among the ready home sales, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Dubai Marina witnessed the highest transaction volumes.

For a detailed perspective on the property market, visit: Dubai - Real Estate Review Q3 2023