Dubai villa prices post double-digit growth in August

Dubai property market continued its strong upward trend in terms of price valuation as both villa and apartment rates showed marked improvements in August.

The real estate consultancy ValuStrat's value price index (VPI) revealed that all 13 villa locations and 21 apartment areas monitored by them have seen their capital values either stabilised or improved last month when compared to July (for only the second time in six years).

For villas, the highest annual capital gains were found in Arabian Ranches (22 per cent), Jumeirah Islands (20.8 per cent), Dubai Hills Estate (18.5 per cent) and The Lakes (18.3 per cent).

Annual capital value performances of Dubai’s apartments, which represent 87 per cent of the residential market, were a mixed bag as compared to villas. A third of all apartments witnessed negative annual growth, a third stable, and a third had single-digit annual capital growth.

Sales transaction volumes up 49 per cent last month compared to July. Month-on-month performance saw ready sales rose 57 per cent and off-plan Oqood (contract) registrations expanded 42 per cent, the report said.

Declan King Mrics, managing director and group head for Real Estate at ValuStrat, said Dubai property sector has stages a strong recovery this year.

“Excluding any unexpected economic or global shock we expect the current positive trends in the Dubai property market to continue in the short to medium term and to broaden out into some areas currently not seeing an uplift in values. This is predicated upon a sustained move into a post-Covid environment and continued recovery in the business sector, return of strong inbound international tourist flows (Expo) and continued low interest mortgage rates,” Mrics said.