A recent report reveals that 85% of all established freehold villa communities in Dubai have more than doubled in value over the past four years. Data from the Dubai Land Department also shows that prices have exceeded the previous peaks of the last decade, with villas on Palm Jumeirah nearly doubling in value since 2014.
Dubai’s real estate market continues to set new records, with price per square foot hitting an all-time high of Dh1,431—a significant 18% increase compared to the previous year, according to data DLD.
The ValuStrat Price Index (VPI) grew 2.2% month-on-month, reaching 186.1 points and representing a 28.8% annual rise. Villas scored 237.7 points, while apartments stood at 152.5 points, both measured against a baseline of 100 points set in January 2021.
The VPI is a valuation-based index that tracks periodic changes in capital and rental values across typical residential and commercial properties.
According to ValuStrat’s August report, Dubai’s residential capital gains continue to exceed market expectations. The month saw over 15,000 sales transactions worth Dh38.55 billion, reflecting strong demand despite limited supply, as per DLD data.
While the average size of homes being purchased has reached record lows, off-plan registrations are leading the market, while ready property sales have continued to decline.
Villas experienced monthly capital gains of 2.4%, with an impressive 33.5% rise over the past year. Leading annual performers include villas in sought-after locations such as Palm Jumeirah (42.9%), Jumeirah Islands (42.4%), Dubai Hills Estate (36.9%), and Emirates Hills (34.3%).
Apartment prices also rose by 2% month-on-month, maintaining record annual growth of 24.4%. The areas with the highest apartment capital gains year-over-year include Discovery Gardens (34.2%), The Greens (33.6%), Palm Jumeirah (30.3%), and The Views (30%).
Off-plan vs. Ready Homes
Oqood registrations for off-plan homes rose by 3.4% month-on-month and 46.4% year-on-year, making up nearly three-quarters of all home sales during the month. However, the volume of ready secondary-home transactions dropped by 15.8% on a monthly basis but was still 10.2% higher compared to the same period last year.
The off-plan segment continues to dominate, accounting for 68% of all transactions with 10,285 deals worth Dh22.9 billion, marking the highest value ever.
August’s buyer profile showed mortgage buyers comprising 58% of all transactions, up from 51% the previous month. Investors also made up a larger share of the market, representing 60% of buyers.
Prime Home Sales In August, there were 13 transactions for ready properties priced over Dh30 million in high-end areas such as Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, Dubai Hills Estate, Bluewaters Island, Jumeirah Golf Estates, and District One.
Top Developers and Locations Data from ValuStrat indicated that in August 2024, top developers by sales included Emaar (22.5%), Sobha (8.7%), Azizi (5.8%), Damac (5.5%), and Danube (5.2%). The leading off-plan locations transacted were Jumeirah Village Circle (9.6%), Dubai South (8.3%), and The Valley (7.7%). As for ready homes, most sales occurred in Jumeirah Village Circle (7.2%), Business Bay (5.7%), Dubai Marina (5.3%), and Downtown Dubai (5.3%).
Dubai Land Department data also shows that among top developers, Emaar leads with Dh7.49 billion in off-plan sales, followed by Sobha Group with Dh2.40 billion, Meraas at Dh1.66 billion, Ellington Properties at Dh1.13 billion, and East & West International Group with Dh0.93 billion. Emaar also topped the transaction volume chart with 2,355 transactions, followed by Sobha Group (1,131 transactions), Azizi (652 transactions), Samana Developers (507 transactions), and Danube (481 transactions).
Source : khaleejtimes.com
