Luxury and residential properties in Dubai continue to grow in value. According to ValuStrat Price Index (VPI), a valuation-based index constructed to represent the monthly price change experienced by residential units within Dubai, capital value growth slows to a sustainable monthly pace for villas, whilst apartments see no significant change.
The analysis shows that the valuation-based residential price index saw monthly growth of just 1 percent to reach 79.8 points in April 2022. Dubai’s typical villa VPI reached 95.7 points. However, most typical apartments saw little or no monthly difference in price, now at 69.7 points. The VPI base is 100 points as of January 2014.
Villas which represent 13 percent of the market, saw capital values grow at a slower monthly rate of 1.8 percent, some areas saw prices marginally increase such as Mudon (0.9 percent) and Green Community West (0.8 percent).
On an annual basis, average villa prices are 33.8 percent higher. Top performers were Arabian Ranches (40.6 percent), Jumeirah Islands (38.8 percent), The Lakes (36.6 percent), Jumeirah Village (34.9 percent), and Palm Jumeirah (34.6 percent).
All apartment locations monitored by the VPI had positive annual capital gains averaging 8.1 percent. Best annual apartment performance with double-digit growth was recorded in highly demanded Palm Jumeirah (20.8 percent), the Burj Khalifa tower (16.4 percent), and Jumeirah Beach Residence (15.6 percent), and The Views (10.3 percent). The lowest annual price growth was seen in Dubai Production City (0.5 percent), Jumeirah Village (1 percent), and Dubai Sports City (1 percent).
Dubai’s volume of home sales decreased 17.4 percent when compared to the previous month but was 55.9 percent higher than the same period last year.
The month-on-month performance saw cash and mortgage sales of ready properties decline 13 percent and off-plan Oqood (contract) registrations down 23.3 percent, the latter representing 40 percent of overall transactions.
Additionally, April saw 19 transactions valued at over 30 million dirhams, one such transaction of a 6-bedroom villa located in Dubai Hills sold for 96 million dirhams.
Also, topping the sales charts overall were properties developed by Emaar (24.2 percent), Damac (15.1 percent), Nakheel (6.3 percent), Select Group (3.7 percent), and Dubai Properties (3.7 percent).
Moreover, top off-plan locations transacted this month included projects located in Business Bay (12.7 percent), Dubai Creek Harbour (8.8 percent), and Downtown Dubai (8.8 percent).
Most transacted ready homes were in Damac Lagoons (13.4 percent), Jumeirah Village (8.4 percent), Dubai Marina (7 percent), and Business Bay (4.7 percent).
Furthermore, apartments in Jumeirah Village broke their individual records with the greatest number of homes sold in one month since 2010.
