Dubai: Villa Community Prices More Than Double in Four Years
A recent report reveals that 85% of established freehold villa communities in Dubai have seen their values more than double over the past four years.
According to data from ValuStrat, a real estate consultancy, prices have not only surged but also surpassed previous peaks from the last decade. Notably, villas in Palm Jumeirah have nearly doubled in value since 2014.
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Dubai’s real estate market continues to break records, with prices per square foot reaching an all-time high of Dh1,431, reflecting an impressive 18% year-on-year increase, as reported by Betterhomes.
The ValuStrat Price Index (VPI) rose 2.2% month-on-month, hitting 186.1 points, which translates to a 28.8% annual increase. Villas recorded 237.7 points, while apartments stood at 152.5 points, both measured against a baseline of 100 points established in January 2021.
The VPI is a valuation-based index designed to track changes in capital and rental values for typical residential and commercial properties.
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Strong Residential Market
The ValuStrat report for August indicates that Dubai’s residential capital gains are maintaining strong momentum, exceeding market expectations. August saw over 15,000 sales transactions valued at Dh38.55 billion, highlighting robust demand despite a limited supply, according to Betterhomes.
While the average size of homes sold has dropped to record lows, off-plan registrations are leading the market, while sales of ready properties have decreased further.
Off-plan vs. Ready Homes
Oqood (contract) registrations for off-plan homes increased 3.4% monthly and 46.4% annually, accounting for nearly 75% of all home sales this month. Conversely, the volume of ready secondary-home transactions fell by 15.8% month-on-month but was 10.2% higher compared to the same period last year.
Leading Developers and Locations
In August 2024, the top developers by sales were Emaar (22.5%), Sobha (8.7%), Azizi (5.8%), Damac (5.5%), and Danube (5.2%). The most active off-plan locations included Jumeirah Village Circle (9.6%), Dubai South (8.3%), and The Valley (7.7%). For ready homes, the top selling areas were Jumeirah Village Circle (7.2%), Business Bay (5.7%), Dubai Marina (5.3%), and Downtown Dubai (5.3%).
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