The residential real estate market in Dubai has demonstrated growth and resilience; the most recent data from ValuStrat shows notable increases in capital values in several different segments.
The Dubai Residential Capital Values Price Index (VPI) saw a strong annual increase of 23.1 percent, reaching 164.1 points, with a monthly uptick of 2.1 percent, according to the February 2024 report from ValuStrat.
According to the report, this increase in value is a reflection of the ongoing demand and investor confidence in the real estate market in the Emirate.
Jumeirah Islands, Palm Jumeirah lead growth in Dubai villas
The report also identified a noteworthy trend: compared to the prior year, capital gains for highly sought-after villas increased by an astounding 28%, with growth rates even higher in some areas like the Jumeirah Islands and Palm Jumeirah.
The capital gains on villas increased by 2.4% from January to the same month last year. Villas in the highly sought-after Jumeirah Islands (36.1 percent), Palm Jumeirah (35.1 percent), Dubai Hills Estate (33.6 percent), and Mudon (29.6 percent) were the top annual performers.
Discovery Gardens, The Greens peak over 27 percent
In a similar vein, the apartment submarket has experienced exceptional growth, with average annual price increases of 18.6%.
According to the report, this surge is especially noticeable in neighborhoods like Discovery Gardens and The Greens, where year-over-year capital growth rates surpass 27 percent.
Prices in the apartment submarket increased at a record 18.6% annually and at a rate of 1.9 percent per month.
The apartment complexes with the largest year-over-year capital growth were Dubai Production City (22.9 percent), Town Square (23.1 percent), Palm Jumeirah (27.3 percent), The Greens (27.3 percent), and Discovery Gardens (30.7 percent).
20 deals over AED30 million recorded in February
The report also provides insight into market transactional activity, with 20 ready property transactions valued at more than AED 30 million recorded in February alone.
Developers like Emaar, Damac, Danube, and Sobha are involved in these transactions.
Though Jumeirah Village Circle accounted for 9 percent of the ready homes sold, Business Bay accounted for 7.2 percent, Dubai Marina for 5.9 percent, Downtown Dubai for 5.8 percent, and Dubai Hills Estate for 5.1 percent.
With a notable increase in Oqood (contract) registrations, which jumped 32.6 percent annually and 5.7 percent monthly, the off-plan segment also showed resilience.
According to the report, investor confidence in the city’s long-term growth prospects is reflected in Dubai’s real estate market’s positive performance.