Dubai's real estate market continues its remarkable ascent, with new data highlighting significant gains across established freehold villa communities.
A recent report from ValuStrat reveals that 85% of these communities have seen their values more than double over the past four years. Notably, villas in Palm Jumeirah have nearly doubled in value since 2014.
The latest figures from Betterhomes show an unprecedented surge in property prices, with prices per square foot reaching an all-time high of Dh1,431—an 18% increase year-on-year. The ValuStrat Price Index (VPI) has also seen a substantial rise, growing 2.2% monthly to hit 186.1 points, marking a 28.8% annual increase. Villas and apartments have achieved respective scores of 237.7 and 152.5 points against a baseline of 100 points set in January 2021.
August's real estate activity was robust, with over 15,000 transactions valued at Dh38.55 billion. Despite a decline in ready property sales, off-plan registrations surged, constituting 68% of transactions and representing a record high in transaction value. Villa prices have seen a monthly gain of 2.4% and a yearly rise of 33.5%, with notable increases in Palm Jumeirah (42.9%) and Jumeirah Islands (42.4%).
In the off-plan segment, Oqood registrations rose 3.4% monthly and 46.4% annually. The volume of ready home transactions fell by 15.8% monthly but increased by 10.2% compared to last year. The dominance of mortgage buyers, accounting for 58% of transactions, alongside a 60% share of investors, underscores the ongoing strength of the market.
Prime property sales also saw significant activity, with 13 transactions for properties over Dh30 million in prestigious locations like Palm Jumeirah and Emirates Hills. Leading developers for off-plan sales include Emaar, Sobha, and Azizi, while Jumeirah Village Circle and Business Bay were among the top locations for ready home sales.
News Source: Khaleej Times
