According to a research released on Monday, Dubai’s capital gains from residential real estate amounted to an average of 27.5% annually, significantly above early projections.
The ValuStrat Price Index (VPI) grew 1.7% month over month in December 2024, hitting 200.7 points. This was the fourth consecutive weakening since August 2024 and a little slowdown from November’s 1.8% rise. When compared to a base of 100 points in January 2021, villa values increased to 259 points and apartment values to 162.8 points.
As of right moment, the VPI has formally doubled from its peak during the epidemic. According to ValuStrat statistics, growth is still slowing down.
The sample of properties that the VPI periodically marks to market represents over 90% of Dubai’s residential and commercial markets.
Villas versus Apartments Monthly capital gains for villas were 2.1%, up 31.6% from the previous year. Villas in popular neighborhoods including Jumeirah Islands (42.5%), Palm Jumeirah (42.3%), Emirates Hills (32.3%), and Dubai Hills Estate (32.1%) are noteworthy top performers each year. Mudon (13.5%) and Jumeirah Village Triangle (21.5%) saw the lowest improvements, with Mudon staying largely unchanged for the fourth consecutive month. The monthly increase in apartment prices was 1.4%, resulting in a 23.6% yearly growth.
The areas with the highest yearly capital gains included The Greens (31 per cent), Palm Jumeirah (28.3 per cent), The Views (27.1 per cent), as well as Town Square and Discovery Gardens, both at 26.4 per cent. In contrast, the lowest capital value increases were observed in International City (16.9 per cent) and Dubai Sports City (18.1 per cent).
Off-plan vs ready homes
Off-plan home Oqood (contract) registrations rose 26.3% per month and 513.8% per year, accounting for 71.1% of all home sales in December. There was a monthly drop of 8.7% and an annual loss of 3.4% in the volume of ready secondary home transactions. Sales of Prime Homes There were 29 deals for ready-to-move-in properties in Downtown Dubai, Business Bay, Jumeirah Bay Island, Palm Jumeirah, Emirates Hills, Blue Waters Island, and District One that cost more than Dh30 million.
Top developers and locations
The top developers in terms of sales in December 2024 were Emaar (12.8 percent), Damac (8.1 percent), Binghatti (7.6 percent), Azizi (5.9 percent), and Sobha (4.6%).
The most off-plan transactions were in projects in Jumeirah Village Circle (13.1%), Business Bay (10.2%), and Dubailand Residence Complex (5.7%).
Meanwhile, most ready homes sold were located in Jumeirah Village Circle (9.1 per cent), Dubai Marina (6.6 per cent), Business Bay (6.1 per cent), Downtown Dubai (4.8 per cent), and Jumeirah Lake Towers (2.9 per cent).
December saw Business Bay and Dubailand Residence Complex break their individual records for the most off-plan residences traded in one month.
According to Emirates NBD data, the city had over 168,000 residential transactions in freehold markets during the year. In 2024, 114,480 units that were still under construction were sold. Their portion of total transactions has grown from 54% in 2023 to 68% in 2024.
In tandem with the remarkable surge in demand, a record number of apartments have been launched throughout the city. In 2024, 142,000 units were introduced in Dubai.
