The ValuStrat Price Index (VPI) covering Dubai’s residential market grew 11.4% annually to achieve 88 points. Villas which represent 13% of residential homes in Dubai, observed 17.1% annual capital gains, while apartment prices grew 6.6% YoY.
The VPI for typical villas witnessed a 2.4% quarterly rise to reach 110.1 points, just 3% shy of 2014 price peaks. The highest quarterly performers were Jumeirah Islands (5%), Palm Jumeirah (4.6%), Dubai Hills Estate (4.5%), and Jumeirah Park (3.8%).
The apartment VPI grew just 1.5% quarterly to reach 74.1 points, 34.2% below the peaks of 2014. The top apartment locations with the highest quarterly capital gains were registered in Palm Jumeirah (4.1%), Jumeirah Beach Residence (3.6%), The Greens (3.4%), and Discovery Gardens (3.1%).
The month of March observed capital gains of typical villas stabilize, whilst apartments witnessed marginal acceleration for the first time since the pandemic.
Prime villa prices surpassed the price peaks of 2014 by 1.2%. The valuation-based price index for luxury villas grew 16.8% YoY and 3.2% QoQ to achieve 119.8 points. Prime apartments lagged behind their villa counterparts, with annual capital gains of 10.2% and quarterly growth of 1.7% to reach 82.9 index points.
New build units
According to Valustrat, the estimated number of new build units to enter the market this year stands at 55,863 homes. Total estimated completions as of the first quarter stood at 6,564 apartments and 1,178 villas, equivalent to 14% of preliminary estimates for the whole of 2023.
Notable apartment completions included Summer at Creek Beach with 298 units, Sunset with 536 apartments, Waves Tower in Sobha Hartland with 414 units, Binghatti Creek at Al Jaddaf with 400 properties, Azizi Berton in Al Furjan with 245 units.
Moreover, based on developer schedules for 2023 handovers, preliminary estimates suggest 48,209 apartments remain under construction, with 54% being located in Mohammed Bin Rashid (MBR) City, Dubailand, Jumeirah Village Circle, and Business Bay. An 81% share of the city’s upcoming 7,654 villas will be concentrated in MBR City, Dubailand, and Dubai South.
For a detailed perspective on the property market, visit: Dubai - VPI Residential Capital Values - April 2023