Dubai’s red-hot property market saw apartment prices rise at their fastest rate in over a decade in January 2024, according to the latest ValuStrat Price Index (VPI) report. This growth was fueled by strong demand amid limited ready supply, as developers focused on off-plan sales.
Surging Capital Appreciation for Apartments Catches Up to Villas
The VPI, which tracks changes in capital values for typical Dubai properties, showed apartment prices rose 17% year-on-year. This is the highest annual growth for apartments in 10 years.
Monthly gains accelerated to 1.8% in January, nearly catching up to the 2.3% monthly growth for villas. Apartment price growth lagged behind villas for most of 2022 but has now narrowed the gap due to affordability constraints for buyers.
Off-Plan Sales Dominate as Ready Inventory Remains Tight
The jump in apartment prices comes despite ready homes transactions declining 14.3% month-on-month in January. Ready units accounted for just 36.2% of total sales during the month.
This imbalance between ready and off-plan sales highlights the limited completed inventory available to buyers. As developers focus on new off-plan launches, secondary sales of ready units have tightened.
Off-plan Oqood registrations rebounded in January, rising 10.4% year-on-year after a seasonal December slowdown. This suggests demand remains robust for new off-plan projects.
Top Areas for Apartment Price Growth
Among apartment buildings, the strongest annual capital profits were visible 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%).
The pinnacle areas for villa fee appreciation included the Jumeirah Islands (34.2%), Palm Jumeirah (33.8%), Dubai Hills Estate (31.9%), and Mudon (28.4%).
Luxury Segment Sees Brisk Sales Activity
Despite broader affordability troubles, Dubai’s luxurious real property market saw brisk interest in January. A general of twenty-two transactions came about for geared-up homes priced over Dh30 million. These luxurious homes had been located in prime areas like Palm Jumeirah, Downtown Dubai, Emirates Hills, and Bluewaters Island.
Top Developers Lead Sales
The traditional mix of important Dubai developers ruled out actual property sales in January. Emaar held the pinnacle spot with a 14.9% marketplace share, accompanied by Damac (10.8%), Nakheel (5.2%), and Select Group (3.5%).
For off-plan income, the maximum popular initiatives were positioned in Jumeirah Village Circle, Dubai Maritime City, Business Bay, and Dubai Hills Estate.
The majority of prepared homes sold have been in Jumeirah Village Circle, Business Bay, International City, Dubai Marina, and Downtown Dubai.
Strong Momentum Expected in 2024
January’s facts indicate Dubai’s actual estate bull run still has room to run in 2024. Apartment charges at the moment are appreciating on par with villas, even as off-plan sales remain robust.
With the populace selecting up and the financial system increasing, the call for is in all likelihood to keep outpacing supply this year. Investors and cease-customers nevertheless have a positive outlook on Dubai assets over the medium period.
However, growing interest fees should cool demand on the margins. And much depends on the global economy fending off a downturn. For now, the momentum stays strongly nice for developers and investors alike.
