Dubai - VPI Residential Capital Values - May 2024

The Dubai residential market demonstrated significant resilience in May, with strong demand preventing any material impact on home valuations despite the record April rainfall. This edition of the ValuStrat Price Index (VPI) highlights robust capital growth alongside unprecedented volumes in the off-plan sector.

• Citywide residential capital values (VPI) recorded 174.4 points, marking a 2.1% monthly rise and a 27.2% annual increase.
• Villa capital values expanded to 221.2 points, reflecting a 32.5% annual gain, led by exceptional performance in prime areas such as Palm Jumeirah at 41.7% and Jumeirah Islands at 41.1%.
• Apartment capital values reached 144 points, marking a record annual growth of 22.4%. Notably, Palm Jumeirah emerged as the first apartment location to officially exceed its previous 2014 capital value peaks.
• Market liquidity surged as off-plan (Oqood) registrations reached a record monthly high of over 10,000 transactions. This represented 69.4% of all residential sales and reflected a massive 76.3% year-on-year increase.
• Ready secondary-home sales also showed a strong recovery, growing 8.1% annually and jumping 45.9% compared to the previous month.

Institutional investors and family offices requiring a valuation-anchored baseline to track market resilience and accelerating capital gains across Dubai's freehold districts.

Lenders and risk management teams seeking independent, evidence-based metrics on the record-breaking surge of over 10,000 off-plan registrations to accurately underwrite real estate exposure.

Real estate developers requiring clear visibility into sub-market momentum and the rapid absorption of off-plan units to strategically plan and price upcoming project launches.

High-net-worth individuals (HNWIs) and active market participants seeking to validate pricing strategies in outperforming prime locations, specifically tracking apartment corridors crossing decade-long price thresholds.

Policymakers and government entities focused on monitoring sustainable price growth and long-term residential sector resilience following external environmental events

This comprehensive index equips decision-makers with the empirical clarity required to navigate Dubai's dynamic residential property cycle in May 2024.

• Benchmark individual residential assets and portfolios against authoritative, citywide capital value trajectories for villas and apartments.
• Understand the precise valuation dynamics driving the resilience of Dubai’s property market and identify the specific communities pushing past historical 2014 price peaks.
• Track shifting market liquidity through detailed analysis of the record-breaking off-plan transactions and the robust month-on-month recovery in ready home sales.
• Support complex pricing, acquisition, and risk mitigation decisions using an independent, valuation-led index based on actual market data.