Marking a significant milestone, the ValuStrat Price Index (VPI) celebrates ten years of real estate market intelligence with the publication of its January 2024 report on Dubai's residential property market. This latest edition not only highlights sustained market growth and emerging trends but also commemorates a decade of insightful analysis and substantial contributions to the understanding of property market dynamics in Dubai, Abu Dhabi, and Qatar.
Reflecting on a decade of innovation and dedication, Haider Tuaima, Director and Head of Real Estate Research at ValuStrat, remarked, "The ValuStrat Price Index was meticulously crafted to serve as a foundation in real estate market analysis, significantly enhancing transparency and empowering stakeholders to make informed decisions."
He elaborated on how the platform translates extensive datasets into actionable insights. "Central to the VPI is a fixed basket of properties, incorporating freehold residential, office units, and industrial spaces, each weighted by rigorously analysed factors. This methodology enables the VPI to act as an almost instantaneous gauge of property cycle shifts, accurately mirroring market dynamics. Our approach, formulated by our team of RICS Registered Valuers, leverages a dataset that represents over 95% of all property types across the markets we serve. This commitment not only secures the VPI’s robustness and dependability but also ensures its applicability and relevance in the rapidly changing landscape of today's real estate sector. The index stands as a testament to our team's dedication to precision, reliability, and the ongoing quest for excellence in market intelligence."
The January 2024 VPI report reveals notable trends, with high off-plan sales within well-established communities dominating the month's home sales. The VPI itself recorded an impressive annual increase of 21.5%, with a steady monthly rise of 2%. Apartments showed a notable monthly capital gain of 1.8% and an annual uplift of 17% - the most significant annual growth seen in the last decade. High-growth performance in the apartment sector was recorded in locations such as Discovery Gardens (28.5%), Palm Jumeirah (26.5%), The Greens (26.2%), Al Quoz Fourth (20.9%), Dubailand Residence Complex (20.6%), and Dubai Production City (20.5%).
Furthermore, the luxury property market demonstrated its resilience, with 22 transactions of ready properties valued above AED 30 million in prestigious areas including Palm Jumeirah, District One, and Emirates Hills. This highlights Dubai's ongoing attractiveness to affluent individuals and investors seeking premium residential options.
"Reflecting on the evolution of the ValuStrat Price Index over the past decade, it's evident that our pioneering efforts have set a benchmark in real estate analytics," stated Declan King MRICS, Managing Director and Group Head of Real Estate at ValuStrat. "The VPI's comprehensive suite of residential, commercial, prime residential, and industrial indices has been instrumental in shaping investment strategies, informing policy decisions, and driving market transparency. Our expansion to include markets such as Qatar alongside the UAE underscores our commitment to providing our clients and stakeholders with insights that are not just current but are predictive and strategic. The enthusiastic reception from our clients, governmental bodies, and the media underscores the VPI's role as an indispensable tool in real estate decision-making. The three letters ‘VPI’ are now synonymous with being a trusted reference point for market data and a go-to for many business commentators and property market stakeholders. As we look to the future, our focus remains on harnessing innovation, enhancing our methodologies, and broadening our market coverage to ensure the VPI stable of indices continues to lead as the most authoritative source of real estate market intelligence."
As ValuStrat marks this anniversary, the firm looks ahead to further growth, innovation, and leadership in the field of real estate market analysis. The past decade of the VPI underscores ValuStrat's unwavering commitment to delivering accurate, timely, and strategic market insights, aiding a diverse array of stakeholders in making well-informed real estate decisions.
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To learn more about ValuStrat's real estate market capabilities and our research outputs, please visit ValuStrat's Insights Webpage.
About ValuStrat:
ValuStrat is an international consulting group providing Advisory, Valuations, Research, Transaction Advisory, Due Diligence and Industrial Consulting services, working across various industry sectors. With 45+ years of experience, a network of 13 offices in 5 countries and a client base of 1,000 corporations across the Middle East, UK, Europe and Africa, ValuStrat assists diverse clients, from governments, multinationals, large local corporations and financial institutions to startups, SMEs and family businesses. For Valuation services, it is the preferred service provider to over 120 financial institutions across the EMEA region.
For a detailed perspective on the property market, visit: Dubai - Real Estate Review Q4 2023
