As investors kept pouring in, Dubai’s real estate market resumed its unheard-of growth trajectory in September, according to new figures released on Monday.
According to data from Valustrat, the apartment submarket experienced capital gains of 1.6% monthly and a new record 11% yearly in September, the biggest capital growth for flats seen in a decade. The September 2023 ValuStrat Price Index, or VPI, increased by 2.1% monthly and 15.1% annually to reach 96.6 points. In comparison to the 100 points set in January 2014, apartments scored 79.7 and villas 123.6.
The VPI is a valuation-based price index that was created to reflect the recurring changes in capital values and rental values that typical residential and commercial properties undergo.
Capital gains on homes and apartments generally pick up speed in September. Along with premier residences, the mid-affordable segment’s less expensive homes also saw increases in valuation. The survey revealed a reduction in off-the-plan transactions and a strong increase in the market for ready (secondary) homes.
The Greens (17.8%), Discovery Gardens (17.1%), Motor City (15.2%), and Jumeirah Beach Residence (11.6%) all earned the greatest apartment annual performance. Palm Jumeirah (20%) came in second. Apartment prices were, on average, 29.2% below mid-2014 market peaks.
In comparison to August, villa prices rose 2.6%, and they have risen 19.8% since last year. The villas in the Jumeirah Islands (26.3%), Dubai Hills Estate (24.4%), Palm Jumeirah (24.2%), and Emirates Hills (21.8%) had the best yearly returns. All villas and townhouses under the VPI’s watch have increased in value beyond their 2014 price peaks, with the exception of Al Furjan and Jumeirah Village Triangle.
However, monthly and yearly declines in home sales were 29.7% and 10%, respectively. Off-plan Oqood (contract) registrations decreased by 55.7% monthly and 37.5% annually, accounting for 40% of monthly sales overall. Transactions for ready homes grew by 14.5% a month and 24.4% a year.
25 ready residences costing over Dh30 million were sold in September 2023, and they were located in Palm Jumeirah, Emirates Hills, Jumeirah Bay, Al Barari, Dubai Marina, and Dubai Hills Estate. Properties built by Emaar (17.2%), Damac (13.1%), Nakheel (8.1%), and Dubai Properties (4.3%) topped the sales statistics overall last month.
The most popular off-plan transactions during the month were for projects in Arjan (13.9%), Jumeirah Village (13.7%), Business Bay (8.9%), and Damac Lagoons (8.8%). While the majority of ready residences were sold in Business Bay (5.3%), Downtown Dubai (6.4%), Emaar South (5.7%), and Jumeirah Village (10.4%). Mudon broke its own record for the first time in September when the most off-plan properties were traded in a single month.
Due to its stability, transparency, and long-term property-linked visa alternatives, Dubai continues to be a safe haven for investors as long as uncertainty is a concern for global investors. Analysts predict that the trend will likely persist.
