ValuStrat, which specializes in real estate consulting and research, revealed that most of the major villa communities in Dubai have exceeded their 2014 peak prices, and Palm Jumeirah has also become the first apartment area to follow the same path.
ValuStrat explained in its report for the month of May that the ValuStrat Price Index reached 174.4 points in May, recording an increase of 27.2% on an annual basis, and by 2.1% on a monthly basis, and the points for villas reached 221.2 points, while the points for apartments reached 221.2 points. 144 points, compared to the baseline of 100 points set in January 2021.
The report stated that despite the record rains in April, strong demand prevented any impact on housing valuations, as villa prices continued to rise at similar monthly rates (the average price per square foot rose to 2,091 dirhams in May), while apartment valuations witnessed accelerated growth compared to April (The average price per square foot rose to 1,147 dirhams in May).
The report continued: “On a monthly basis, apartment prices rose by 1.8%, an increase of 0.2% from April, recording a record growth of 22.4% on an annual basis. Among the areas that recorded the highest capital gains for apartments compared to the previous year was Discovery Gardens (34%). The Greens (32.6%), Palm Jumeirah (30.9%), Al Quoz Fourth (29.1%), The Views (28.1%).” Villa gains reached 2.4% compared to April and 32.5% over the previous year. It is worth noting that the best annual performance includes villas in the most sought-after areas such as Palm Jumeirah (41.7%), Jumeirah Islands (41.1%), Dubai Hills Estate (37.5%) and Emirates Hills. (32.5%) and lakes (32.1%).
Under construction
The report stated that off-plan home contract registrations rose by 76.3% on an annual basis and 41.6% on a monthly basis, reaching a record monthly high of more than 10,000 transactions, representing 69.4% of total housing sales. Meanwhile, the transaction volume of ready homes has grown by 8.1% since last year, and 45.9% since April.
Higher than 30 million dirhams
There were 16 transactions for ready properties, with a price exceeding 30 million dirhams during the month of May, located in Palm Jumeirah, Dubai Marina, Jumeirah Bay Island, Emirates Hills and District One.
Best developers and websites
In May, Emaar topped developers' sales in the Dubai real estate market (with a 16.6% share), Azizi (8.5%), Sobha (8.2%), Damac (7.9%), and Nakheel (3.6%). The top locations where homes were sold off the map included projects in Jumeirah Village Circle (10%), Ras Al Khor (9.5%), Meydan One (9.4%), and Dubai Hills Estate (7.7%). Meanwhile, the majority of ready homes sold were in Jumeirah Village Circle (8.3%), Business Bay (6.6%), Dubai Marina (5.9%), Downtown Dubai (5.3%), and Jumeirah Lakes Towers (3.9%). During the month, Discovery Gardens and Dubai Hills Estate broke their individual records with the highest number of ready homes sold in a single month.
Price per foot - villas
According to the report, the Palm Jumeirah area still has the highest average price per square foot for villas at 5,150 dirhams per square foot, an increase of 41.7% on an annual basis, while the average price of a standard villa in the region reaches 25.7 million dirhams. The Emirates Hills area came second, with an average price of 3,868 dirhams per square foot, while the average price of a standard villa is 65.7 million dirhams, and third is the Dubai Hills Estate area, with an average price of 2,327 dirhams per square foot, while the average price of a standard villa in the region reaches 11.6 million dirhams.
Price per foot - apartments
The report data showed that the Burj Khalifa area still has the highest average price per square foot for apartments at 3,200 dirhams per square foot, while the average price of a standard apartment in the region reaches 2.99 million dirhams. The Downtown Dubai area came second with an average price of 2,045 dirhams per square foot. The average price of a standard apartment is 1.7 million dirhams, and third is the Palm Jumeirah area, with an average price of 1,872 dirhams per square foot, while the average price of a standard apartment in the region reaches 3.2 million dirhams.
For a detailed perspective on the property market, visit: Dubai - VPI Residential Capital Values - April 2024
