Eighty five per cent of all established freehold villa communities in Dubai have more than doubled in value compared to four years ago, a new report shows.
According to the latest data from ValuStrat, a real estate consultancy, prices have also surpassed the previous peaks of the last decade, with Palm Jumeirah villas nearly doubling in value since 2014.
Dubai’s real estate market continues to shatter records, with prices per square foot reaching an all-time high of Dh1,431 – a significant 18 per cent year-on-year increase, data from Betterhomes showed.
The ValuStrat Price Index (VPI) grew 2.2 per cent monthly to reach 186.1 points, representing a 28.8 per cent annual increase. Villas scored 237.7 points, while apartments stood at 152.5 points, both measured against the baseline of 100 points established in January 2021.
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The VPI, is a valuation-based price index constructed to represent periodic change in capital values and rental values experienced by typical residential and commercial properties.
According to the ValuStart report for August, Dubai’s residential capital gains maintain strong momentum, exceeding market predictions. August saw over 15,000 sales transactions valued at Dh38.55 billion, marking a robust demand despite limited supply, Betterhomes data showed.
While the average size of homes purchased fell to record lows, off-plan registrations led the market, whilst ready property sales saw further declines.
Villa monthly capital gains were at 2.4 per cent and 33.5 per cent since last year. Notably, top annual performers include villas in highly sought-after areas like Palm Jumeirah (42.9 per cent) and Jumeirah Islands (42.4 per cent), Dubai Hills Estate (36.9 per cent), and Emirates Hills (34.3 per cent).
Month on month, apartment prices rose by 2 per cent, maintaining record annual growth of 24.4 per cent. Among the areas with the highest apartment capital gains compared to last year are Discovery Gardens (34.2 per cent), The Greens (33.6 per cent), Palm Jumeirah (30.3 per cent), and The Views (30 per cent).
Off-plan vs ready homes
Oqood (contract) registrations for off-plan homes grew 3.4 per cent monthly and 46.4 per cent annually, representing almost three-quarters of all home sales this month. However, the volume of ready secondary-home transactions fell by 15.8 per cent monthly but was 10.2 per cent higher than the period last year.
The off-plan segment continues to dominate, accounting for 68 per cent of all transactions with 10,285 deals worth Dh22.9 billion, the highest ever in terms of value, Betterhomes data showed. “Developers are seeing overwhelming demand, with buyers eagerly awaiting new supply in the market,” a Betterhomes spokesperson said.
The buyer profile in August showed a continued dominance of mortgage buyers, who accounted for 58 per cent of all transactions, compared to 51 per cent in the previous month, Betterhomes data showed. Investors also made up the larger share of the market, comprising 60 per cent of all buyers. “This month’s figures reflect the ongoing strength of Dubai’s real estate market, with off-plan developments continuing to drive momentum, and sales across various locations showing strong performance,” the Betterhomes spokesperson said.
Prime home sales
There were 13 transactions for ready properties priced over Dh30 million, situated in Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, Dubai Hills Estate, Bluewaters Island, Jumeirah Golf Estates, and District One.
Top developers and locations
August 2024 saw Emaar (22.5 per cent), Sobha (8.7 per cent), Azizi (5.8 per cent), Damac (5.5 per cent), and Danube (5.2 per cent) lead the developer sales charts overall, ValuStrat data showed. Top off-plan locations transacted included projects in Jumeirah Village Circle (9.6 per cent), Dubai South (8.3 per cent), and The Valley (7.7 per cent). Meanwhile, most ready homes sold were located in Jumeirah Village Circle (7.2 per cent), Business Bay (5.7 per cent), Dubai Marina (5.3 per cent), and Downtown Dubai (5.3 per cent).
According to Betterhomes data, among the 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. In terms of transaction volume, Emaar also tops the list with 2,355 transactions, followed by Sobha Group (1,131 transactions), Azizi (652 transactions), Samana Developers (507 transactions), and Danube (481 transactions).