Dubai's luxury villas continue to attract the attention of wealthy investors from around the world, as the emirate continues to establish itself as a destination for luxury living and successful real estate investment.
The Palm Jumeirah and Jumeirah Islands areas are at the forefront of the emirate’s real estate scene, recording an unprecedented leap in value since 2021, with the value tripling due to the growing demand for luxury and prime location.
It is clear that the strong demand for residential villas in Dubai today is focused on the artificial island areas, as they are among the best in the emirate in terms of their distinguished location with a beach view of the Arabian Gulf, wonderful designs, superior luxury, advanced infrastructure and upscale lifestyle.
Dubai villas continue to record capital gains post-pandemic, with villa gains in the emirate rising 2.2% month-on-month and 32.4% year-on-year in October.
The best annual performance is being recorded in highly sought-after areas such as Palm Jumeirah, which recorded gains of 42.5%, and Jumeirah Islands, which recorded 42.3%, with both areas now three times more expensive than they were at the beginning of 2021.
October data from real estate research and consultancy firm ValuStrat showed that villas in Dubai Hills Estate also achieved annual gains of 33.7%, Emirates Hills 33.1%, Mudon 17.1%, followed by Jumeirah Village Triangle.
In October 2024, the ValuStrat price index rose by 1.9% month-on-month to 193.8 points, and on an annual basis, the index rose by 28.3%, with villa values reaching 248.5 points, while apartments recorded 158.1 points, both measured on a 100-point basis from January 2021.
On another note, ValuStrat, whose data is based on a fixed basket of properties, which it describes as representing the market, reported that apartment prices rose by 1.7% on a monthly basis, while the annual growth rate reached 24.3%.
Areas that achieved the highest capital gains for apartments compared to last year included The Greens (32.4%), Discovery Gardens (30.9%), Palm Jumeirah (29.9%) and The Views (28.4%), while the lowest capital gains were in International City (16.8%) and Sports City (17.5%).
Ready vs. map
Off-plan home transactions grew by 13.1% month-on-month and 99.7% year-on-year, accounting for nearly three-quarters of all home sales during October, while secondary home transactions grew by 11.7% month-on-month and 30.1% year-on-year.
The Dubai real estate market witnessed the registration of 21 transactions for ready properties at a price exceeding 30 million dirhams, which were in Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, Al Barari, and Dubai Hills Estate.
Best Sites and Developers
October 2024 saw Emaar (14.7%), Damac (13.6%), Sobha (8.7%), Azizi (6.2%) and Dubai Holding (3.4%) lead overall developer sales.
The top locations that sold off-plan included projects in Jumeirah Village Circle (6.5%), Dubai Hills Estate (5.6%), Motor City (5.6%) and Dubai South (5.5%).
Meanwhile, most of the ready homes sold were located in Jumeirah Village Circle (10.7%), Business Bay (7%), Dubai Marina (6.2%) and Downtown Dubai (4.5%).
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 5,970 per square foot, up 42.5% year-on-year, while the average price of a standard villa in the area reaches AED 29.8 million.
Emirates Hills came in second with an average price of AED 4,245 per square foot, while the average price of a standard villa is AED 73.8 million.
Jumeirah Islands moved up to third place, ahead of Dubai Hills Estate, with an average price of AED 2,675 per square foot, up 42.3% year-on-year, the second best performer after Palm Jumeirah. The average price of a standard villa in the area is AED 14.1 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 3,460 per square foot, an increase of 19.3% on an annual basis.
While the average price of a standard apartment in the area reaches 3.2 million dirhams, Downtown Dubai came in second with an average price of 2,250 dirhams per square foot, and the average price of a standard apartment is 1.8 million dirhams.
For a detailed perspective on the property market, visit: Dubai - VPI Residential Capital Values -October 2024
