Villas lead a rise in Dubai’s residential property value in Q2 with an increase of 7.0% when compared to the Q1 and an annual gain of 6.3%.
The ValuStrat Price Index for residential capital values rise by 3.8% in the Q2 of 2021 when compared to Q1, as an outcome which most areas recovered their capital losses of the previous year, the latest Dubai Real Estate Market Report said.
All villas monitored by the basket saw improvements not seen since 2014. The highest annual capital gains were registered in Arabian Ranches at 10.3%, Jumeirah Islands with 9.1%, Dubai Hills Estate at 9.0%, The Lakes with 8.2%, Mudon at 7.7% and, The Meadows with 7.2%.
The sharp rise in value shows Dubai’s real estate sector’s increasing pace of performance, reflecting the vitality, flexibility, and attractiveness as the sector registered 6,388 sales transactions worth Dh14.79 in June 2021, which is the highest in value in 8 years, mainly since December 2013, as per the Dubai Land Department data.
The sales transactions in June 2021 are 44.33% higher regarding the volume and 33.2% regarding value when compared to May 2021.
The quarterly ValuStrat Price Index for apartments rose 1.7% but declined 4.8% compared to last year. Jumeirah Beach Residence, Palm Jumeirah, Downtown Dubai, and The Views where the best quarterly performs.
The Dubai VPI for residential rental values stood at 60.8 points, a rise of 6.5% quarterly, writing off all losses from the previous year. On a quarterly basis, villa rents increased by 9.5%, and apartment rents increased by 4.6%. Dubai’s citywide residential net yields averaged 4.8%, provided by the report.
Total calculated completions as of the Q2 stood at 11,329 apartments and 2,320 villas, equivalent to 28.6% of preliminary estimates for this year.
Notable apartment completions were Amna Tower Al Habtoor City (450 units), Bellevue Towers (360 units), UNA Apartments (956 units), Bloom Towers JVC (946 units). For villas, Albizia, Janusia, Aster, and Sycamore in Akoya Oxygen (1,644 units), Villanova Amaranta 2 (352 units), and Jumeirah Luxury in Jumeirah Golf Estates (290 units).
Almost 26,318 apartments are under construction with the majority located in Mohammed Bin Rashid (MBR) City (16%), Downtown Dubai (15%), and Dubailand (12%). More than 80% of the 7,811 new build villas will be in Dubailand and MBR City.
Key off-plan projects reported during the second quarter included Sobha Waves at The Waterfront District (592 units), Palace Beach Residence Emaar Beachfront (541 units), Murooj Al Furjan (418 units), and Bliss Townhouses (335 units) at Arabian Ranches 3.
Sales volumes of residential units in the Q2 broke the previous quarter record, and every other quarter since 2010, as per the report. Yearly, non-mortgage sales volumes of ready homes increased 395.6%, while comparing to 196.3% off-plan sales, this not surprising given that the city last year was on lockdown due to the Covid-19 pandemic.
While comparing to the previous quarter, ready homes deals increased by 22.3% and off-plan sales were up 56.3%.
Ready homes ticket sizes increased by 11.9% QoQ, and off-plan homes leaped 12.4% quarterly to Dh2.4 million and 1.5 million, respectively. The citywide average dealt price per square foot has crossed Dh1,000 for the first time in the last three years.
All over citywide residential asking rents stayed static when compared to the previous year, however, a rise in asking rentals was seen due to the rise in villa demand.
On a quarterly basis, residential asking rents increased by 6.5%, the first substantial gain since 2014.
While compared to the same period last year, listed rent decreased by 7.8% for apartments but increased 15.2% for villas, the highest record rise since our base year.
Average yearly rents for 2-bed villas stood at Dh105,000, 3-bed units at Dh151,000, and 4-bedroom villas at Dh 215,000. Average rents per annum for studio apartments were Dh34,000, 1-bed at Dh51,000, 2-beds at Dh74,000, and 3-bedroom apartments were Dh113,000. Residential occupancy in Dubai was calculated at 83% this quarter.