Dubai’s apartment prices continued to surge in August

Dubai’s apartment prices continued to move up in August due to persistent demand, resulting in higher valuations, a report showed on Tuesday.

Increased sales of apartments within affordable and mid-market communities were observed, according to ValuStrat.

The ValuStrat Price Index (VPI) for August 2023 grew 1.9 per cent monthly and 13.8 per cent annually to reach 94.6 points. Apartments were at 78.5 points, and villas at 120.4 points, this is compared to 100 points set in January 2014.

The VPI is a valuation-based price index constructed to represent periodic change in capital values and rental values experienced by typical residential and commercial properties.

Villa prices increased 2.4 per cent when compared with July, and 18.2 per cent since last year, this is far below the 33.9 per cent villa annual capital gains seen during February 2022. The top annual performers were villas in Jumeirah Islands (24.2 per cent), Palm Jumeirah (22.1 per cent), Dubai Hills Estate (22 per cent), and Emirates Hills (20.6 per cent). Jumeirah Park, Arabian Ranches, and Jumeirah Islands, surpassed their 2014 price peaks by up to 3.2 per cent.

Dubai’s apartment sub-market saw capital gains of 1.5 per cent monthly and expanded at a record 10 per cent annually, the highest capital growth for apartments witnessed in a decade. The best apartment annual performance was recorded in Palm Jumeirah (19.3 per cent), The Greens (14.7 per cent), Discovery Gardens (14.1 per cent), Motor City (13 per cent), and Jumeirah Beach Residence (11.3 per cent).

Home sales grew 1.1 per cent monthly and 5.8 per cent annually. Off-plan Oqood (contract) registrations rose 13 per cent monthly 40.8 per cent annually, representing a three-year record share of 63.5 per cent of overall monthly sales. Ready homes transactions fell 14.6 per cent monthly and 26.2 per cent annually. Apartment sales dominated this month, representing 95 per cent of all deals, 99 per cent in off-plan registrations and 88 per cent in ready home title deeds.

The average size of a ready home sold during the past 8 months was 1,624 square feet, priced at Dh1,341 per square foot. Topping the sales charts overall this month were properties developed by Emaar (10.9 per cent), Damac (10.5 per cent), Sobha (8.7 per cent), Danube (5.6 per cent), Nakheel (5 per cent), ORO24 (4.3 per cent), and Azizi (3.4 per cent).

Top off-plan locations transacted this month included projects located in Business Bay (15.1 per cent), Jumeirah Village (15 per cent), Arjan (10.4 per cent), Sobha Hartland (9 per cent) and Dubai Harbour (6.5 per cent).

While the majority of ready homes sold were in Jumeirah Village (9.2 per cent), Dubai Marina (8.3 per cent), Business Bay (6.5 per cent), International City (4.9 per cent), and Downtown Dubai (4.8 per cent).

The market trend continues to move towards more mid-market and affordable areas. August saw International City ranking fourth within locations with highest number of ready home sales. Arjan ranked 3rd within the highest number of off-plan registrations. Business Bay broke its individual record for the first time with the highest number of off-plan properties traded in one month.