Dubai property prices rose 28.5% in July compared to 2023, according to a report by ValuStrat, as home sales in Dubai continued at a phenomenal pace supported by strong demand, with the emirate selling a record 10,000 off-plan homes in July. Off-plan home sales outsold ready homes in Dubai by a ratio of 2 to 1, according to a report by ValuStrat, while prices continued to rise.
The report indicated that “house prices rose 28.5% in July compared to the previous year, with villas recording an increase of 23.5% and apartments 33.4%. House prices have now surpassed their previous peak in Dubai in 2014, which recorded 175.5 on the ValuStrat price index, with the baseline set at 100 at its lowest level in January 2021.”
Palm Jumeirah and Jumeirah Islands tied for the highest annual growth in villa prices, up 43% since July, followed by Dubai Hills Estates at 38%, all of which have seen prices double since 2020, while villas in general have surpassed their previous peak in Dubai.
Palm Jumeirah also outperformed the average apartment price growth, with a growth of 30.8%, but Discovery Gardens saw the highest increase of 34.6%, followed by Greens at 34.1%.
Virtual Tsunami
According to the report, the driver of these massive growth increases was a virtual “tsunami” of off-plan home sales, with July recording a record 10,022 pre-development home contracts, or 68.5% of total transactions, and a 60% increase from 2023. In contrast, sales of ready homes saw a 27% year-on-year growth.
The neighbourhoods that witnessed the highest number of off-plan sales were Dubai Hills Estates, Jumeirah Village Circle and Business Bay, with Palm Jumeirah seeing a record number of off-plan villa deals.
Emaar share
According to the report, about 20 percent of all contracts were with Emaar Properties, the company behind the Burj Khalifa in Downtown Dubai, Dubai Hills Estates, Dubai Marina, Emirates Living and many others.
After Emaar, the leading companies in primary market sales were Damac Properties, Dubai Properties and Nakheel, with a market share ranging between 5% and 7%.
Although Dubai house prices have generally recovered to levels last seen a decade ago – largely due to rising villa prices, which have far exceeded their 2014 peak – apartments have not recovered their previous value, according to the index, making them more attractive to investors.
For a detailed perspective on the property market, visit: Dubai - VPI Residential Capital Values - July 2024
