Robust demand mitigated the effects of April's record-breaking rainfall and subsequent flooding on Dubai's home valuations in May, as per the ValuStrat Price Index (VPI) analysis of residential capital values. The VPI observed that villa capital values maintained their growth rate, while apartment valuations saw an increase in growth compared to the previous month. The index reached 174.4 points in May, reflecting a 27.2% annual increase and a 2.1% monthly rise. Villas scored 221.2 points and apartments 144 points, against the baseline of 100 points established in January 2021. JLL Mena reported robust growth in the UAE's residential sector for Q1 2024, with Dubai seeing around 21% annual increases in sale prices and rentals, while Abu Dhabi experienced average increases of 7.0% in sales prices and 4.0% in rental rates. Knight Frank data indicated that the average house price in Dubai was Dh3.3 million in 2024, with prices varying significantly depending on property type, size, location, and amenities. The ValuStrat Price Index report highlighted that most established villa communities surpassed their 2024 capital value peaks, with Palm Jumeirah being the first apartment area to achieve the same. Apartment prices increased by 1.8% monthly, up 0.2% from April, and recorded a 22.4% annual growth. Areas with the highest annual apartment capital gains included Discovery Gardens (34%), The Greens (32.6%), Palm Jumeirah (30.9%), Al Quoz Fourth (29.1%), and The Views (28.1%). Villa capital gains stood at 2.4% from April and 32.5% year-over-year, with top performers being villas in Palm Jumeirah (41.7%), Jumeirah Islands (41.1%), Dubai Hills Estate (37.5%), Emirates Hills (32.5%), and The Lakes (32.1%). Off-plan home contract registrations surged by 76.3% year-over-year and 41.6% monthly, reaching a monthly high of over 10,000 transactions, accounting for 69.4% of all residential sales. Ready home transactions increased by 8.1% year-over-year and 45.9% since April. In the prime home sector, there were 16 transactions for ready properties priced over Dh30 million in locations like Palm Jumeirah, Dubai Marina, Jumeirah Bay Island, Emirates Hills, and District One. Emaar, Azizi, Sobha, Damac, and Nakheel led developer sales, with top off-plan locations including Jumeirah Village Circle, Ras Al Khor, Meydan One, and Dubai Hills Estate, while ready homes were predominantly sold in Jumeirah Village Circle, Business Bay, Dubai Marina, Downtown Dubai, and Jumeirah Lake Towers. Discovery Gardens and Dubai Hills Estate set records for the highest number of off-plan homes traded in a single month.
Text: Lara Palmer
13.06.2024
Villa and Apartment Values Grow, Off-Plan Sales Surge Amidst Robust Demand and Record Transactions