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Dubai residential property valuations soar in 2024

In Dubai, residential property values are rising, with high demand for apartments in top areas

Dubai residential property valuations soar in 2024

Residential property valuations in Dubai are on the rise, with apartment capital gains now matching those of villas. ValuStrat Price Index (VPI) revealed that this shift is being attributed to affordability constraints driving demand for apartments. Off-plan sales in established communities are dominating the market, particularly in January 2024.

The VPI grew 21.5% annually, with a steady monthly increase of 2% to achieve 160.6 points. Apartments were at 134 points, and villas at 201.4 points, this is compared to 100 points set in January 2021 and 172.5 points at the peak of 2014.

The apartment submarket saw capital gains accelerate by 1.8% monthly and expand by 17% annually, the highest annual capital growth for apartments witnessed in a decade. The best apartment performance compared to the same period last year was recorded in Discovery Gardens (28.5%), Palm Jumeirah (26.5%), The Greens (26.2%), Al Quoz Fourth (20.9%), Dubailand Residence Complex (20.6%), and Dubai Production City (20.5%).

Source: ValuStrat Price Index (VPI)

Villa capital gains were at 2.3% when compared with December last year, and 26.4% since last year. The top annual performers were villas in highly desired Jumeirah Islands (34.2%), Palm Jumeirah (33.8%), Dubai Hills Estate (31.9%), and Mudon (28.4%).

Off-plan Oqood (contract) registrations increased by 10.4% annually and rebounded by 284.9% monthly in January, following a weak December. Ready homes transactions saw a 14.3% decline in volume compared to the previous month, but still showed a 22.4% year-on-year increase. January 2024 saw 22 transactions of ready properties priced at $8.18 million (over AED 30 million), these are located in Palm Jumeirah, District One, Jumeirah Bay Island, Emirates Hills, Jumeirah Golf Estates, Bluewaters Island, and Dubai Hills Estate. Ready homes accounted for 36.2% of overall residential unit sales in January 2024.

Topping the sales charts overall this month were properties developed by Emaar (14.9%), Damac (10.8%), Nakheel (5.2%), and Select Group (3.5%). Top off-plan locations transacted this month included projects located in Jumeirah Village Circle (13.5%), Dubai Maritime City (9%), Business Bay (8.8%), and Dubai Hills Estate (5.5%). The majority of ready homes sold were in Jumeirah Village Circle (10.3%), Business Bay (10%), International City (6.5%), Dubai Marina (5.6%), and Downtown Dubai (5%).