ValuStrat, a real estate consultancy and research firm, said that 85% of villa complexes in Dubai have more than doubled in value compared to four years ago, confirming that capital gains in the emirate’s residential real estate sector have maintained their strong momentum, exceeding market expectations.
ValuStrat added in its August report that the ValuStrat Price Index for August recorded 186.1 points, an increase of 28.8% year-on-year, with a monthly increase of 2.2%. The index reading for villas rose to 237.7 points, and apartments to 152.5 points, compared to 100 basis points in January 2021.
capital gains
According to ValuStrat, which bases its data on a fixed basket of properties that it describes as representative of the market, 85% of villa communities in Dubai have more than doubled in value compared to four years ago, and prices have surpassed previous peaks from the past decade, with Palm Jumeirah villas nearly doubling in value since 2014.
Capital gains for villas stood at 2.4% M-o-M and 33.5% Y-o-Y. The best annual performances for villas were recorded in the most sought-after areas such as Palm Jumeirah (42.9%), Jumeirah Islands (42.4%), Dubai Hills Estate (36.9%) and Emirates Hills (34.3%).
On a monthly basis, apartment prices rose by 2%, maintaining a record annual growth of 24.4%, with areas that achieved the highest capital gains for apartments compared to last year including Discovery Gardens (34.2%), The Greens (33.6%), Palm Jumeirah (30.3%) and The Views (30%).
"Ready-made" vs. "On the map"
Off-plan home contracts grew by 3.4% month-on-month and 46.4% year-on-year, accounting for nearly three-quarters of all home sales during the month. However, the volume of completed secondary homes transactions fell by 15.8% month-on-month but remained 10.2% higher than the same period last year.
luxury homes
There were 13 transactions for ready properties priced above Dh30 million, across Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, Dubai Hills Estate, Bluewaters Island, Jumeirah Golf Estates and District One.
Best Developers
The sales list for August was led by residential properties developed by Emaar (22.5%, up from 13% in February), Sobha (8.7%), Azizi (5.8%), Damac (5.5%), Danube (5.2%), Meraas Developments (3.5%) and Samana (3.4%).
Best Sites
The top locations that witnessed off-plan transactions included projects in Jumeirah Village Circle (9.6%), Dubai South (8.3%), and The Valley (7.7%), while the majority of ready homes sold were in Jumeirah Village Circle (7.2%), Business Bay (5.7%), Dubai Marina (5.3%), and Downtown Dubai (5.3%).
Price per foot for villas
According to the report, the Palm Jumeirah area continues to record the highest average price per square foot for villas at AED 5,629 per square foot, up 42.9% year-on-year, while the average price of a standard villa in the area is AED 28.1 million. Emirates Hills came in second with an average price of AED 4,170 per square foot, while the average price of a standard villa is AED 70.8 million.
Jumeirah Islands moved up to third place, ahead of Dubai Hills Estate, with an average price of AED 2,521 per square foot, up 42.4% year-on-year, making it the second best performer after Palm Jumeirah, while the average price of a standard villa in the area is AED 13.3 million.
Price per foot for apartments
The report data showed that the Burj Khalifa area still has the highest average price per square foot for apartments, at AED 3,355 per square foot, an increase of 18.6% year-on-year, while the average price of a standard apartment in the area reaches AED 3.1 million. The Downtown Dubai area came in second with an average price of AED 2,170 per square foot, while the average price of a standard apartment is AED 1.8 million. The Palm Jumeirah area came in third with an average price of AED 1,993 per square foot, while the average price of a standard apartment in the area reaches AED 3.4 million.
For a detailed perspective on the property market, visit: Dubai - VPI Residential Capital Values - August 2024
