According to a new industry report, Dubai’s real estate market witnessed a remarkable surge in demand for off-plan homes in May. The Emirate experienced a staggering 41.6% month-on-month increase in new contract registrations, accounting for over 10,000 transactions and 69.4% of total residential sales.
The ‘ValuStrat Price Index – Dubai Residential Capital Values’ report highlighted a 76.3% year-on-year increase in off-plan registrations for residential properties last month, with communities such as Jumeriah Village Circle and Meydan One driving up demand. Notably, Discovery Gardens and Dubai Hills Estate set new records for the most off-plan homes sold in a single month.
The volume of ready home transactions also saw a significant increase, rising by 8.1% year-on-year and 45.9% since April. The majority of homes sold were in Jumeirah Village Circle (8.3%), Business Bay (6.6%), Dubai Marina (5.9%), Downtown Dubai (5.3%), and Jumeirah Lake Towers (3.9%). Additionally, 16 transactions for ready properties priced over 30 million UAE dirhams were completed in prestigious areas like Palm Jumeirah, Dubai Marina, Jumeirah Bay Island, Emirates Hills, and District One.
Despite the flooding caused by Dubai’s record rainfall in April, which affected several communities, strong demand for residential properties prevented any significant impact on home valuations, according to ValuStrat. Villa capital values continued to rise at similar monthly rates, with Palm Jumeirah properties seeing an annual capital value increase of 41.7%. Other notable annual gains were observed at Jumeirah Islands (41.1%), Dubai Hills Estate (37.5%), Emirates Hills (32.5%), and The Lakes (32.1%).
ValuStrat reported that most established villa communities in Dubai have exceeded their previous capital value peaks from 2014, and the Palm Jumeirah became the first apartment area to achieve this milestone this month. Monthly apartment prices increased by 1.8%, 0.2% more than in April, for a 22.4% annual growth rate. The areas with the highest apartment capital gains compared to the previous year were Discovery Gardens (34%), The Greens (32.6%), Palm Jumeirah (30.9%), Al Quoz Fourth (29.1%), and The Views (28.1%).
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