The capital values of Dubai’s villa market have seen a remarkable 32.4% surge over the past year, with a 2.2% increase observed just in October. According to a recent report from ValuStrat on Dubai’s residential real estate market for October, villa prices on Jumeirah Islands have tripled since 2021. Other standout neighbourhoods include Palm Jumeirah, with a substantial 42.5% growth, Dubai Hills Estate rising by 33.7%, and Emirates Hills experiencing a 33.1% increase. In contrast, Mudon saw a modest growth of 17.1% and remained unchanged for the second consecutive month.
Additionally, the apartment sector in Dubai reflected a 1.7% monthly increase, culminating in a 24.3% annual rise. The Greens saw the highest apartment value ascent at 32.4%, followed closely by Discovery Gardens at 30.9%, Palm Jumeirah at 29.9%, and The Views at 28.4%. However, areas like Dubai Sports City and International City lagged behind with annual gains of 17.5% and 16.8%, respectively.
ValuStrat’s Price Index (VPI) showed a monthly increase of 1.9%, reaching 193.8 points in October 2024, marking a slight slowdown from September’s 2.1% growth rate. Over the year, the index expanded by 28.3%, with villa values hitting 248.5 points and apartments recording 158.1 points, based on a January 2021 benchmark of 100 points. The VPI serves as a comprehensive metric of capital and rental value movements in the residential and commercial sectors.
The pace of capital growth has decelerated for the second month in a row. The ValuStrat report notes that more apartment communities are reaching peak price levels seen previously.
In terms of sales, off-plan transactions dominated with nearly 75% of all home sales being off-plan Oqood registrations, which soared by 13.1% on a monthly basis and nearly doubled annually at 99.7%. Ready secondary-home sales also observed a significant rise, increasing by 31.1% annually and 11.7% monthly. Notably, high-value transactions peaked in areas like Palm Jumeirah, Dubai Hills Estate, Jumeirah Bay Island, Al Barari, and District One, with 21 properties selling for over AED 30 million.
Since the end of the COVID-19 pandemic, Dubai’s real estate market has shown unprecedented growth. The emirate has become a prime destination for high-net-worth individuals seeking stability amidst global uncertainty. The constant rise in real estate demand is fuelled by factors such as the offering of long-term residencies to property investors, and a booming non-oil economy that attracts top global talent. Experts foresee this upward trend in demand continuing unabated well into the future.
