According to data released on Monday, the capital values of Dubai villas have surged by 32.4% over the past year, with a 2.2% increase recorded in October alone.
The ValuStrat report on Dubai’s October residential real estate market revealed that villas in Jumeirah Islands are now three times more expensive than in 2021. Other standout performers include Palm Jumeirah (+42.5%), Dubai Hills Estate (+33.7%), and Emirates Hills (+33.1%). In contrast, Mudon (+17.1%) and Jumeirah Village Triangle showed the slowest growth, with Mudon remaining unchanged for the second consecutive month.
Apartment Prices See Steady Gains
Apartment prices increased by 1.7% monthly and 24.3% annually. The Greens (+32.4%), Discovery Gardens (+30.9%), Palm Jumeirah (+29.9%), and The Views (+28.4%) were among the top-performing areas for apartment capital value growth. Meanwhile, Dubai Sports City (+17.5%) and International City (+16.8%) saw the smallest increases.
ValuStrat Price Index Highlights Trends
The ValuStrat Price Index (VPI) climbed by 1.9% month-on-month to 193.8 points in October 2024, marking a slight slowdown from September’s 2.1% growth. On an annual basis, the index recorded a 28.3% increase. Villa values reached 248.5 points, while apartments rose to 158.1 points, both benchmarked to a base of 100 points in January 2021.
The VPI, a valuation-based index, tracks fluctuations in capital and rental values for typical residential and commercial properties. The report noted that capital growth has slowed for the second consecutive month, with more apartment communities nearing previous price peaks.
Off-Plan Sales Dominate Market Activity
Off-plan Oqood registrations made up nearly 75% of all home sales in October, rising 13.1% monthly and an impressive 99.7% annually. Meanwhile, transactions for ready secondary homes increased 11.7% month-on-month and 31.1% annually.
Sales of prime properties also remained robust, with 21 transactions exceeding AED 30 million in neighborhoods such as Palm Jumeirah, Dubai Hills Estate, Jumeirah Bay Island, Al Barari, and District One.
Dubai’s Real Estate Momentum Continues
Dubai’s real estate market has achieved unprecedented growth since the end of the COVID-19 pandemic. Global uncertainty has driven high-net-worth individuals to the emirate, drawn by its reputation as a haven. Initiatives such as long-term residences for property investors and a booming non-oil economy continue to attract top talent, ensuring sustained demand in the real estate sector.