Dubai’s real estate sector records remarkable gains in August

In a recent report from real estate consultancy ValuStrat, Dubai’s property market showcased significant growth last month, with apartments, villas, and townhouses all experiencing price increases. The agency reported that the apartment market saw a monthly capital gain of 1.5 percent and an annual increase of 10 percent, marking the highest capital growth rate in a decade.

Among the notable findings were the annual capital gains recorded in various areas of Dubai. Palm Jumeirah topped the list with an impressive 19.3 percent gain, followed by The Greens at 14.7 percent, Discovery Gardens at 14.1 percent, Motor City at 13 percent, and Jumeirah Beach Residence at 11.3 percent.

According to Haider Tuaima, head of research at ValuStrat, the rise in apartment sales was particularly noticeable in affordable and mid-market communities. He pointed out that International City ranked fourth in terms of the highest number of ready home sales in August, while Arjan came third in terms of off-plan registrations. Business Bay also set a new record with the highest number of off-plan properties traded in a single month.

Experts believe that Dubai’s property market is poised for continued growth due to factors such as a growing population, low taxes, and a favorable global economic climate.

The resurgence of Dubai’s property market can be attributed to various government initiatives, including the introduction of residency permits for retirees and remote workers. The expansion of the 10-year golden visa program, the economic boost from Expo 2020 Dubai, and rising oil prices have also contributed to the sector’s growth momentum.

A recent report by consultancy Knight Frank revealed that Dubai’s residential real estate prices rose by 17 percent in the second quarter compared to the previous year, marking the tenth consecutive quarter of expansion. During the April to June period, property prices increased by 4.8 percent.

Meanwhile, villa prices in Dubai saw a 2.4 percent increase compared to July and an 18.2 percent rise since the previous year, as per the ValuStrat report. However, this growth is notably lower than the 33.9 percent annual capital gains observed in February 2022.

Top-performing areas for villa capital gains included Jumeirah Islands (24.2 percent), Palm Jumeirah (22.1 percent), Dubai Hills Estate (22 percent), and Emirates Hills (20.6 percent). Jumeirah Park, Arabian Ranches, and Jumeirah Islands even exceeded their 2014 price peaks by up to 3.2 percent.

ValuStrat reported a 13 percent monthly increase and a 40.8 percent annual rise in off-plan Oqood (contract) registrations, marking a three-year record share of 63.5 percent of overall monthly sales. In contrast, ready home transactions dropped by 14.6 percent monthly and 26.2 percent annually.

Apartment sales dominated the market last month, accounting for 95 percent of all deals, 99 percent of off-plan registrations, and 88 percent of ready home title deeds.

Noteworthy off-plan locations in August included projects in Business Bay, Jumeirah Village, Arjan, Sobha Hartland, and Dubai Harbour. On the other hand, the majority of ready homes sold were in Jumeirah Village, Dubai Marina, Business Bay, International City, and Downtown Dubai.

Emaar (10.9 percent), DAMAC (10.5 percent), Sobha (8.7 percent), Danube (5.6 percent), and Nakheel (5 percent) were the top developers in terms of sales.

Separately, global real estate consultancy CBRE reported that Dubai’s residential market witnessed a total of 11,328 transactions in August, the second-highest monthly figure ever recorded, marking a 22 percent increase compared to the previous year. In the year-to-date figures up to August, a total of 79,605 transactions were registered, a record high.

Over the 12 months leading to August, average property prices increased by 19.6 percent, with apartment prices rising by 20 percent and villa prices by 17.3 percent. Apartment sales rates were 9.6 percent below their 2014 peak, while villa sales rates were 8.7 percent above the 2014 level, according to CBRE’s data.

Downtown Dubai led the apartment segment with the highest sales rate per square foot at Dh2,460, while Palm Jumeirah topped the villa segment at Dh4,915 per square foot.

Taimur Khan, head of research for the Middle East and North Africa at CBRE in Dubai, noted a slight moderation in the rental market, with average rents in Dubai rising by 21.7 percent in the year to August. Average apartment rents increased by 21.5 percent, while average villa rents rose by 22.6 percent during this period. 

Original article reference: The National News.


For live availability and pricing, contact our investment team.

By submitting this form you agree to subscribe to updates from M&M Real Estate and be sent information in relation to its products and services.