Dubai’s property prices rose for the 15th consecutive quarter in the January-March 2024 period, owing primarily to affordable and mid-market communities.
According to analysts, Discovery Gardens, Sports City, and Dubailand apartments experienced the greatest price increases as demand from residents and foreign investors remained strong.
To meet demand, villa owners in the city are renovating older units and reselling them at significantly higher prices.
“There are no signs of capital values slowing down yet, with city-wide sales prices rising for the 15th consecutive quarter. City-wide sales prices are up by 20 percent year-on-year and 66 percent higher than the first quarter of 2020 (pre-COVID-19),” said Prathyusha Gurrapu, director and head of research and consultancy at Cushman & Wakefield Core.
Gurrapu also stated that the price increase for apartments is moderate, particularly in prime sub-markets such as Palm Jumeirah, City Walk, Downtown Dubai, and Dubai Marina, where sales price increases have been limited to less than 20% year on year.
Property rallies that began after the COVID-19 pandemic continued in 2024, as prices remain significantly lower than in most cities worldwide, attracting many investors.
Tenants are gradually becoming property owners as rent prices rise due to an increase in the number of foreign workers entering the country.
“Affordable and mid-market apartment communities, owing to a lower base, have seen a sharper increase of 30 per cent and above in Discovery Gardens (37 percent), Dubai Sports City (34 percent) and Dubailand (32 percent),” Gurrapu stated.
Haider Tuaima, director and head of real estate research at ValuStrat, said capital value increased by 24.7% year on year in the first quarter, driven by mid-affordable communities.
Tuaima cited Discovery Gardens, The Greens, Palm Jumeirah, The Views, Town Square, Al Quoz Fourth, and Dubai Production City as the top performers.
According to ValuStrat data, 46,558 newly built homes are expected to enter the market this year. Total estimated completions as of the first quarter are 5,770 apartments and 1,038 villas, accounting for 15% of preliminary estimates for 2024.
There are approximately 86,000 apartments currently under construction, with handovers scheduled for 2028.
Renovating older villas to sell at higher rates
According to Cushman & Wakefield Core data, the majority of villa districts saw a year-on-year increase in sale prices of more than 20%, with the highest increases occurring in Jumeirah Village Circle, The Lakes, and Jumeirah Park.
“One contributing factor to this surge in villa sales prices, especially in older areas like The Lakes and Jumeirah Park, is the trend of renovating and reselling units at notably higher prices, thereby elevating the average price in the area. These villa districts boast central locations with well-established schools and amenities as well as spacious layouts, therefore, after upgrades, they can command and achieve substantial premiums,” said Gurrapu.
Haider Tuaima added that villas remained resilient, with a year-on-year increase of 29.6 percent, reaching a 10-year high in prime villa prices.
According to ValuStrat, there are approximately 21,230 villas under construction in Dubai, with completion scheduled for 2024.
