ValuStrat, a real estate consultancy and research firm, revealed that the average price of villas (freehold areas) in Dubai exceeded the 10 million dirham barrier last June, for the first time in the history of the real estate market in the emirate, after reaching the threshold of 9.82 million dirhams in May.
ValuStrat’s June 2024 report stated that the ValuStrat Price Index (VPI) for real estate prices reached 178.2 points in June, representing a 28.2% year-on-year increase and a 2.2% increase from May. Villas recorded 226.6 points, while apartments reached 146.7 points, compared to a baseline of 100 points set in January 2021. The report stated that June witnessed all villa communities (freehold areas) in Dubai exceeding their previous capital value peak from 2014. However, in the sub-apartment market, only Palm Jumeirah has exceeded this threshold so far.
On a monthly basis, apartment prices rose by 1.9%, recording a record annual growth of 23.4%, and among the areas that recorded the highest capital gains for apartments compared to the previous year were Discovery Gardens (34.5%), The Greens (33.7%), Palm Jumeirah (31.1%), and The Views (29.7%).
Villas gained 2.4% compared to May and 33.4% compared to the year, with the best performing areas year-on-year including villas in the most sought-after areas such as Palm Jumeirah (43.1%), Jumeirah Islands (42.5%), Dubai Hills Estate (38.5%) and Emirates Hills (33.6%).
Under construction
The report stated that off-plan home registrations increased by 33% year-on-year.
luxury home sales
There were 15 transactions for ready properties priced above AED 30 million, located in Palm Jumeirah, Business Bay, Jumeirah Bay Island, Emirates Hills and Dubai Hills Estate.
Best Developers and Sites
In June 2024, Emaar (12%), Damac (8.2%), Azizi (5.8%), Sobha (8.2%), Danube (5.4%) and Nakheel (4.5%) topped the list of top developers’ sales overall. The top locations for off-plan sales included projects in Business Bay (9.7%), Jumeirah Village Circle (8.2%), Meydan One (6.4%) and Arjan (4.7%). Meanwhile, the majority of ready homes sold were in Jumeirah Village Circle (8.2%), Business Bay (6.7%), Dubai Marina (6%), Downtown Dubai (4.7%) and International City (3.7%).
Average price per foot for villas
According to the report, Palm Jumeirah continues to have the highest average price per square foot for villas at AED 5,305 per square foot, up 43.1% year-on-year, while the average price of a standard villa in the area reached AED 26.5 million. Emirates Hills came in second with an average price of AED 3,970 per square foot, up 33.6% year-on-year, while the average price of a standard villa reached AED 67.4 million. Dubai Hills Estate came in third with an average price of AED 2,388 per square foot, up 38.5% year-on-year, while the average price of a standard villa in the area reached AED 11.9 million.
Average 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 3,250 per square foot, while the average price of a standard apartment in the area rose to AED 3 million. The Downtown Dubai area came in second with an average price of AED 2,086 per square foot, while the average price of a standard apartment is AED 1.75 million. The Palm Jumeirah area came in third with an average price of AED 1,911 per square foot, while the average price of a standard apartment in the area reached AED 3.31 million.
For a detailed perspective on the property market, visit: Dubai - VPI Residential Capital Values - June 2024
