Dubai’s residential property prices witnessed the slowest gains in 20 months in February, as deliveries rise and the market matures, data showed on Monday.
The ValuStrat Price Index (VPI) saw its slowest capital growth in 20 months, with monthly villa valuations up 2 per cent, down from a peak of 2.7 per cent, and apartments rising 1.2 per cent, down from a high of 2 per cent.
The VPI regularly marks to market a sample of properties that represent more than 90 per cent of the Dubai residential and commercial markets.
February 2025 saw the VPI reach 207.5 points, marking a 1.6 per cent monthly increase and a 26.5 per cent rise year on year. Villa values climbed to 269.6 points, while apartments reached 167 points, all benchmarked to a base of 100 points in January 2021.
Villa capital values grew 2 per cent monthly, with an annual increase of 30.8 per cent. The strongest annual performers included villas in Jumeirah Islands (42.3 per cent), Palm Jumeirah (41.8 per cent), Emirates Hills (31.2 per cent), and The Meadows (29.9 per cent). Meanwhile, the lowest gains were recorded in Mudon (10.5 per cent), which has remained relatively stable for the sixth consecutive month. Dubai’s freehold villas are, on average, valued 57 per cent above the previous market peak and 160 per cent higher than post-pandemic levels.
Apartment prices rose by 1.2 per cent monthly, down from 1.4 per cent in January, recording an annual growth of 22.2 per cent. The highest yearly capital gains were seen in The Greens (28.9 per cent), Palm Jumeirah (26.3 per cent), Dubailand Residence Complex (25.7 per cent), The Views (25.4 per cent), and Town Square (25.1 per cent). In contrast, the lowest capital value increases were recorded in International City (15.4 per cent) and Dubai Sports City (17.9 per cent). Apartment valuations are, on average, 9 per cent below the previous market peak but 65 per cent above post-pandemic levels.
Off-plan vs ready homes
Oqood (contract) registrations for off-plan homes grew 22.2 per cent monthly and 59.5 per cent on an annual basis, representing 70.8 per cent of all home sales in February. The volume of ready secondary-home transactions also increased by 12.8 per cent monthly and 9.8 per cent annually.
There were 31 transactions for ready properties priced over Dh30 million, situated in Dubai Hills Estate, Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, Business Bay, Bluewaters Island, District One, and Jumeirah Golf Estates.
February 2025 saw Emaar (17.5 per cent), Damac (12.7 per cent), Sobha (4.8 per cent), Nakheel (4.3 per cent), Dubai Properties (4.3 per cent) and Samana (2.6 per cent) lead the developer sales charts overall.
Top off-plan locations transacted included projects in Jumeirah Village Circle (7.1 per cent), The Valley (6.5 per cent), Damac Island City (5.5 per cent), Emaar South (5 per cent), and Dubailand Residence Complex (4.9 per cent). Dubai Silicon Oasis broke its individual record with the highest number of off-plan homes traded in one month.
Meanwhile, most ready homes sold were in Jumeirah Village Circle (9.9 per cent), Business Bay (7.4 per cent), International City (5.6 per cent), Dubai Marina (5.4 per cent), Downtown Dubai (5.2 per cent), and Jumeirah Lake towers (3.3 per cent). Emirates Hills broke its individual record with the highest number of ready homes traded in one month.
For a detailed perspective on the property market, visit: Dubai - VPI Residential Capital Values - February 2025
