Dubai real estate: apartment growth nears villa rates

Dubai’s apartment capital values rise as revealed by latest analysis of ValuStrat, with Discovery Gardens leading at a 32.6% annual increase, followed closely by The Greens at 29.8%, according to the firm’s March 2024 report.

The overall VPI for residential properties climbed to 167.5 points in March, reflecting a yearly ascent of 24.7% and a monthly growth of 2.1%. Apartments showed a strike of 139.2 points from a baseline of 100 points set in January 2021, while villas soared to 211 points showing convergence in the growth rates of apartments and villas.

Monthly, apartments experienced a 1.9% increase, reaching an annual high of 20.1%, whereas villas gained 2.4% over the previous month, totaling a 29.6% rise year-over-year. An interesting apartment capital growth was also seen in Palm Jumeirah (29%), The Views (24.8%), and Town Square (24.5%), with Palm Jumeirah apartments achieving an 83.6% growth since January 2021.

In the villa sector, Palm Jumeirah and Jumeirah Islands both recorded impressive annual increases of 37.7%, with Dubai Hills Estate (34.8%), Mudon (30.2%), and Arabian Ranches (29.2%) also showing significant gains. Jumeirah Islands topped the growth charts for villas with a 143.5% rise since January 2021.

The luxury villa market remained vibrant, recording 15 transactions for properties priced above AED 30 million ($8.17 million) across prime locations including Palm Jumeirah and Dubai Hills Estate.

On the development side, off-plan Oqood (contract) registrations rose annually by 14%, escalating monthly by 18.2%. Emaar led developer sales with a 14.9% share of March’s Oqood transactions, followed by Damac, Azizi, and Sobha. Jumeirah Village Circle was the most active area for off-plan transactions and also led in sales of ready homes, followed by Business Bay, Dubai Marina, and Downtown Dubai.

The ValuStrat Price Index offers a monthly valuation-based view of the shifts in capital and rental values across Dubai, capturing up to 95% of the market, calculated by expert registered valuers and covering 38 areas within the city.

Original article reference: Arabian Business.

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