Analysts at ValuStrat highlighted stable monthly growth in villa capital values, with apartment valuations accelerating slightly from April. The VPI for May recorded 174.4 points, reflecting a year-on-year growth rate of 27.2% and a monthly increase of 2.1%. The index stood at 221.2 points for villas and 144 points for apartments, with a baseline set at 100 points in January 2021.

According to data from CBRE MENA, the UAE residential sector showed strong growth in the first quarter of 2024. In Dubai, housing sales prices and rental rates increased by approximately 21%. CBRE's first-quarter assessment report indicated that Abu Dhabi saw average sales prices rise by 7.0% and rental rates by 4.0% during the same period.

Knight Frank data indicated that as of 2024, the average property price in Dubai is 3.3 million dirhams. Property costs vary significantly based on type, size, location, and amenities. Older apartments in remote areas sell for around 400,000 dirhams, mid-range villas in suburban communities average between 2 to 3 million dirhams, while prices for luxury top-floor apartments or beachfront mansions can easily exceed 50 million dirhams.

khaleejtimes.com

The ValuStrat Price Index report highlighted that most mature villa communities in Dubai have exceeded peak capital values since 2024. This month, Jumeirah Palm Island became the first apartment area to achieve this level. Apartment prices rose by 1.8% month-on-month, up 0.2 percentage points from April, marking a 22.4% annual increase.

Compared to last year, the highest-performing areas in apartment capital gains included Discovery Gardens (34%), Greens (32.6%), Jumeirah Palm Island (30.9%), Al Quoz Fourth (29.1%), and The Views (28.1%). Villa capital gains were at 2.4%, down from 32.5% year-on-year. The best-performing villa communities this year included Jumeirah Palm Island (41.7%), Jumeirah Islands (41.1%), Dubai Hills Estate (37.5%), Al Barari (32.5%), and Lakes (32.1%), among others.

Contracts registered for off-plan residences saw a year-on-year increase of 76.3% and a month-on-month increase of 41.6%, reaching a record monthly high with transactions exceeding 10,000, constituting 69.4% of all residential sales. Meanwhile, transactions for ready-to-move-in homes increased by 8.1% since last year and by 45.9% since April.

In the luxury residential sector, 16 transactions exceeded 30 million dirhams, located in Jumeirah Palm Island, Dubai Harbour, Jumeirah Bay Island, Al Barari, and District One. In May, Emaar (16.6%), Azizi (8.5%), Sobha (8.2%), Damac (7.9%), and Nakheel (3.6%) topped the developer sales ranking.

Top-performing off-plan projects included Jumeirah Village Circle (10%), Ras Al Khor (9.5%), Meydan One (9.4%), and Dubai Hills Estate (7.7%). Meanwhile, most ready-to-move-in homes were sold in Jumeirah Village Circle (8.3%), Business Bay (6.6%), Dubai Harbour (5.9%), Downtown Dubai (5.3%), and Jumeirah Lake Towers (3.9%). Discovery Gardens and Dubai Hills Estate saw record off-plan transaction volumes within a month.