According to a key index released on Wednesday, apartment prices in Dubai saw the largest annual capital growth in a decade.
Due primarily to affordability issues, apartment capital gains are now matching those of villas, according to the ValuStrat Price Index (VPI), even though residential property valuations in Dubai saw growth in January.
The VPI is a valuation-based price index designed to show how capital values and rental values of typical residential and commercial properties fluctuate over time.
In established communities, high off-plan sales account for the majority of home sales in January 2024. The VPI increased by 2 percent per month on average, or 21.5% annually, to reach 160.6 points. In comparison to the 100 points set in January 2021 and the 172.5 points at the peak of 2014, apartments were at 134 points and villas were at 201.4 points.
The report indicated that capital gains in the apartment submarket increased by 1.8% every month and by 17% on an annual basis.
In comparison to the same period the previous year, the apartments in Discovery Gardens (28.5%), Palm Jumeirah (26.5%), The Greens (26.2%), Al Quoz Fourth (20.9%), Dubailand Residence Complex (20.6%), and Dubai Production City (20.5%) had the best performance. The capital gains for the villa were 2.4% as of December of last year, and 26.4% since then.
Villas in the Jumeirah Islands (34.2%), Palm Jumeirah (33.8%), Dubai Hills Estate (31.9%), and Mudon (28.4%) were the highest-performing properties annually. After a weaker December, off-plan Oqood (contract) registrations increased by 10.4% yearly and 284.9% monthly. Although the volume of transactions involving ready homes decreased by 14.3% every month, they were still 22.4% higher than in the prior year and accounted for a minor portion of 36.2 percent of all monthly sales of residential units.
In January 2024, 22 ready-to-move-in properties valued at more than Dh30 million were sold. These can be found in Dubai Hills Estate, Bluewaters Island, Palm Jumeirah, Jumeirah Bay Island, Emirates Hills, and Jumeirah Golf Estates.
The properties developed by Emaar (14.9%), Damac (10.8%), Nakheel (5.2%), and Select Group (3.5%) topped the sales charts overall last month.
The most popular off-plan locations last month were projects in Dubai Hills Estate (5.5%), Business Bay (8.8%), Dubai Maritime City (9%) and Jumeirah Village Circle (13.5%). The preponderance of completed residences that were sold were situated in Jumeirah Village Circle (10.3%), Business Bay (10%), International City (6.5%), Dubai Marina (5.6%), and Downtown Dubai (5%).