Dubai’s residential real estate market recorded an impressive 27.5% annual capital gain, surpassing expectations and reinforcing the city’s standing as a leading property investment destination.
The ValuStrat Price Index (VPI) closed the year at 200.7 points, reflecting a 1.7% month-on-month rise in December 2024. This follows a steady softening of monthly growth since August. Villa values reached 259 points, while apartments rose to 162.8 points, both benchmarked against January 2021 levels. The index has now doubled compared to its pandemic-era performance.
Villas Outperform Apartments in Annual Growth
Villas outshone apartments with a 31.6% annual growth, driven by demand in sought-after communities. Jumeirah Islands led the way with a 42.5% increase, followed closely by Palm Jumeirah (42.3%), Emirates Hills (32.3%), and Dubai Hills Estate (32.1%). Mudon and Jumeirah Village Triangle reported the most moderate growth, with annual gains of 13.5% and 21.5%, respectively.
Apartment capital values rose by 23.6% over the year, with notable growth in The Greens (31%), Palm Jumeirah (28.3%), and The Views (27.1%). Town Square and Discovery Gardens also performed well, each achieving 26.4%. Meanwhile, International City and Dubai Sports City registered smaller gains at 16.9% and 18.1%, respectively.
Off-Plan Sales Dominate Transactions
Off-plan properties continued to dominate the market, representing 71.1% of all home sales in December. Oqood contract registrations surged by 26.3% compared to November, marking an annual rise of over 513%. In contrast, secondary market transactions dipped by 8.7% month-on-month and 3.4% year-on-year.
Among high-value transactions, 29 deals exceeded AED 30 million, spanning Blue Waters Island, Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, Downtown Dubai, Business Bay, and District One.
Leading Developers and Hotspots
Emaar Properties led developer sales in December, accounting for 12.8% of transactions, followed by Damac Properties (8.1%), Binghatti (7.6%), Azizi Developments (5.9%), and Sobha Realty (4.6%). Popular off-plan locations included Jumeirah Village Circle (13.1%), Business Bay (10.2%), and Dubailand Residence Complex (5.7%).
For ready homes, Jumeirah Village Circle topped the list with 9.1% of transactions, followed by Dubai Marina (6.6%), Business Bay (6.1%), Downtown Dubai (4.8%), and Jumeirah Lake Towers (2.9%). December marked record-breaking activity in Business Bay and Dubailand Residence Complex, with the highest-ever monthly off-plan transactions.
Record Residential Launches and Transactions
Dubai’s freehold markets saw over 168,000 transactions in 2024, with 114,480 units sold in the under-construction segment alone. This category’s share of total transactions rose significantly from 54% in 2023 to 68% in 2024. Developers launched a record 142,000 units throughout the year, reflecting the robust demand across the city.
Original article reference: Khaleej Times.
