85% of all established freehold villa communities in Dubai have more than doubled in value compared to four years ago, a new report shows.
According to the most delinquent data from ValuStrat, a real estate consultancy, prices have overtaken the previous heights of the last decade, with Palm Jumeirah villas closely creasing in value since 2014.
Dubai’s real estate market resumes to shatter records, with prices per sq. ft achieving an all-time high of Dh1,431 – a significant 18% YOY increase, data from Better Homes delivered.
The ValuStrat Price Index (VPI) increased 2.2% monthly to reach 186.1 points, meaning a 28.8% annual growth. Villas achieved 237.7 points, while apartments stood at 152.5 points, both calculated against the baseline of 100 points specified in January 2021.
The VPI is a valuation-based price index constructed to describe periodic changes in capital and rental values experienced by typical residential and commercial properties.
Dubai’s residential capital gains are outpacing market expectations, according to the August ValuStart study. According to Betterhomes data, August witnessed over 15,000 sales transactions valued at Dh38.55 billion, indicating strong demand despite a constrained supply.
Ready property sales suffered additional reductions, but off-plan registrations led the market, even as the average size of homes acquired dropped to all-time lows.
Villa’s monthly capital gains were at 2.4% and 33.5% since last year. Notably, top annual performers include villas in highly sought-after areas like Palm Jumeirah (42.9%) Jumeirah Islands (42.4%), Dubai Hills Estate (36.9%), and Emirates Hills (34.3%).
Month on month, apartment prices rose by 2%, maintaining a record annual growth of 24.4%. The most significant percentage of apartment capital gains from the previous year to this one is seen in The Greens (33.6%), Palm Jumeirah (30.3%), Discovery Gardens (34.2%), and The Views (30%).
Off-plan vs ready homes
Oqood (contract) registrations for off-plan homes grew 3.4% monthly and 46.4% annually, representing almost three-quarters of all home sales this month. However, the volume of ready secondary-home transactions fell by 15.8% monthly but was 10.2% higher than last year.
The off-plan segment continues to dominate, accounting for 68% of all transactions with 10,285 deals worth Dh22.9 billion, the highest ever in terms of value, Betterhomes data showed. “Developers are seeing overwhelming demand, with buyers eagerly awaiting new supply in the market,” a Better Homes spokesperson said.
The buyer profile in August showed a continued dominance of mortgage buyers, who accounted for 58% of all transactions, compared to 51% in the previous month, Betterhomes data showed. With 60% of all purchases from investors, they accounted for a more significant portion of the market. “This month’s figures reflect the ongoing strength of Dubai’s real estate market, with off-plan developments continuing to drive momentum, and sales across various locations showing strong performance,” the Betterhomes spokesperson said.
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Prime home sales
Thirteen ready villas in Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, Dubai Hills Estate, Bluewaters Island, Jumeirah Golf Estates, and District One were sold for over Dh30 million.
Top developers and locations
August 2024 saw Emaar (22.5%), Sobha (8.7%), Azizi (5.8%), Damac (5.5%), and Danube (5.2%) lead the developer sales charts overall, ValuStrat data showed. Projects in Jumeirah Village Circle (9.6%), Dubai South (8.3%), and The Valley (7.7%) were the top off-plan locations transacted. Meanwhile, most ready homes sold were located in Jumeirah Village Circle (7.2%), Business Bay (5.7%), Dubai Marina (5.3%), and Downtown Dubai (5.3%).
Emaar is the top developer, with off-plan sales of Dh7.49 billion, according to Betterhomes data. Sobha Group, Ellington Properties, Meraas, and East & West International Group are next, with Dh2.40, Dh1.66, and Dh0.93 billion respectively. Emaar is also the leader in transaction volume, with 2,355 transactions. Azizi (652 transactions), Sobha Group (1,131 transactions), Danube (481 transactions), and Samana Developers (507 transactions) round out the top 5.
