Strong demand mitigated the effects of April's record-breaking rainfall on Dubai property values in May, as per the ValuStrat Price Index (VPI) analysis of residential capital values. Villa values maintained their monthly growth rates, and apartment values saw a boost compared to the previous month, according to ValuStrat analysts. The VPI hit 174.4 points in May, reflecting a 27.2% yearly increase and a 2.1% monthly rise. Villas scored 221.2 points, and apartments reached 144 points, against a baseline of 100 set in January 2021. JLL Mena reported robust growth in the UAE's residential sector for Q1 2024, with Dubai seeing about 21% annual hikes in both sale prices and rentals. Abu Dhabi experienced a 7.0% increase in sales prices and a 4.0% rise in rental rates. Knight Frank data showed the average house price in Dubai at Dh3.3 million in 2024, with prices varying significantly based on property type, size, location, and amenities. Most established villa communities surpassed their 2024 capital value peaks, and Palm Jumeirah became the first apartment area to do so. Apartment prices increased by 1.8% monthly, up 0.2% from April, with an annual growth of 22.4%. Areas with significant 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 were 2.4% from April and 32.5% year-on-year, with top performers being Palm Jumeirah (41.7%) and Jumeirah Islands (41.1%). Off-plan home contract registrations surged 76.3% year-on-year and 41.6% monthly, hitting a monthly record of over 10,000 transactions, accounting for 69.4% of all residential sales. Ready home transactions increased by 8.1% year-on-year and 45.9% since April. In the prime sector, 16 transactions for properties over Dh30 million occurred in prestigious areas. Emaar, Azizi, Sobha, Damac, and Nakheel led developer sales. Top off-plan locations included Jumeirah Village Circle, Ras Al Khor, Meydan One, and Dubai Hills Estate. 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 off-plan home transactions in a single month.
Text: Lara Palmer
13.06.2024
ValuStrat Price Index Shows Continued Growth in Villa and Apartment Values Amidst Challenges