Dubai’s real estate sector continued to position itself as a premier hub for investors last month with prices of residential units, villas and apartments, witnessing major annual increases. The ValuStrat Price Index saw its slowest capital growth in 20 months, with monthly villa valuations up 2 percent, down from a peak of 2.7 percent, and apartments rising 1.2 percent, down from a high of 2 percent.
Despite the slower growth in February, the price index reached 207.5 points, marking a 1.6 percent monthly increase and a 26.5 percent rise year-on-year. Villa values climbed to 269.6 points, while apartments reached 167 points, all benchmarked to a base of 100 points in January 2021.
Villa capital values grow 30.8 percent annually
The latest ValuStrat report reveals that villa capital values across Dubai’s real estate sector grew 2 percent monthly and 30.8 percent annually. The strongest annual performers included villas in Jumeirah Islands, which saw their values rise 42.3 percent, Emirates Hills which rose 31.2 percent and The Meadows which recorded a 29.9 percent uptick last month.
Meanwhile, the lowest gains were recorded in Mudon at 10.5 percent, which has remained relatively stable for the sixth consecutive month. The report also revealed that Dubai’s freehold villas are, on average, valued 57 percent above the previous market peak and 160 percent higher than post-pandemic levels.
Apartment prices rise 22.2 percent
Apartment prices in Dubai’s real estate sector rose by 1.2 percent monthly, down from 1.4 percent in January, recording an annual growth of 22.2 percent.
The highest yearly capital gains were seen in The Greens at 28.9 percent, Palm Jumeirah at 26.3 percent, Dubailand Residence Complex at 25.7 percent, The Views at 25.4 percent, and Town Square at 25.1 percent. In contrast, the lowest capital value increases were in International City at 15.4 percent and Dubai Sports City at 17.9 percent.
Last month, apartment valuations were, on average, 9 percent below the previous market peak but 65 percent above post-pandemic levels.
Off-plan registrations surge
Dubai’s real estate sector has witnessed a notable rise in demand for off-plan properties in recent years. In February, Oqood (contract) registrations for off-plan homes grew 22.2 percent monthly and 59.5 percent annually, representing 70.8 percent of all home sales in February. The volume of ready secondary-home transactions also increased by 12.8 percent monthly and 9.8 percent annually.
Dubai recorded 31 transactions for ready properties worth over AED30 million last month, situated in Dubai Hills Estate, Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, Business Bay, Bluewaters Island, District One and Jumeirah Golf Estates.
The ValuStrat also noted that the top off-plan locations in February included projects in Jumeirah Village Circle, The Vally, Damac Island City, Emaar South and Dubailand Residence Complex. Dubai Silicon Oasis broke its individual record with the highest number of off-plan homes traded in one month.
Meanwhile, most ready homes sold were in Jumeirah Village Circle, Business Bay, International City, Dubai Marina, Downtown Dubai and Jumeirah Lake towers. Emirates Hills also broke its individual record with the highest number of ready homes traded in one month.
Property sales hit $13.91 billion in February
The constant rise in prices of real estate in Dubai comes as demand grows from both local and international buyers. Property sales in February reached $13.91 billion, a 39.91 percent increase in value on the same month last year.
A recent report from fäm Properties reveals that last month’s total of 16,099 transactions also represented a 35.5 percent increase in volume over February 2024, making it one of the best-ever months on record.
Over the last five years, Dubai’s real estate market witnessed a remarkable 449 percent increase in the value of sales, rising from AED9.3 billion in 2020 to AED7.3 billion in 2021, AED15.4 billion in 2022, AED27.1 billion in 2023 and AED36.5 billion in 2024.
