According to the most recent data from real estate company ValuStrat, Dubai’s residential market continued to perform well in May, with capital values rising faster than the previous month.
The ValuStrat Price Index (VPI) rose 2.1 percent this month to 174.4 points, representing a 27.2 percent increase from May last year.
Villas experienced the largest monthly increase of 2.4 percent, with values rising 32.5 percent annually to 221.2 points on the index. Apartments increased at a slightly slower rate of 1.8 percent for the month but outperformed the year by 22.4 percent, reaching 144 points.
Dubai home prices continue sharp rise in May
Analysts believe the figures highlight the emirate’s ongoing recovery from the effects of the pandemic.
While heavy April rains raised short-term concerns, demand remained strong to offset expected price drops.
Several villa communities regained or exceeded their pre-Covid peak prices from 2014. Palm Jumeirah became the first apartment community to do so this month.
Discovery Gardens tops Dubai apartment capital gains with 34% growth
Capital gains in top-performing apartment communities range from 21% to more than 30% annually. Discovery Gardens led with a 34% increase.
The Greens and Palm Jumeirah followed with 32.6 percent and 30.9 percent, respectively. Al Quoz Fourth and The Views achieved high returns of around 29 percent.
Meanwhile, villa areas such as Palm Jumeirah, Jumeirah Islands, and Dubai Hills Estate have seen astonishing annual increases of 35-40 percent.
Strong investor interest was also evident in prime-end sales exceeding AED30 million. Sixteen ready homes were sold in highly desirable locations such as Palm Jumeirah, Dubai Marina, and District One.
Sales figures show an upbeat market landscape. Ready home transactions increased by 8.1 percent year on year in May, reaching 4,619 units.
Off-plan contract signings or good registrations increased even more dramatically, up 76.3 percent year on year to a monthly record high of over 10,000 units, accounting for 69.4 percent of residential deals.
Leading developers dominated transactions. Emaar held the largest market share (16.6%), followed by Azizi (8.5%) and Sobha (8.2%).
Off-plan sales hotspots included Jumeirah Village Circle, Ras Al Khor, and Dubai Hills Estate developments. Ready homes are primarily traded in Jumeirah Village Circle, Business Bay, and Dubai Marina.