Dubai’s luxury real estate market maintains growth in May
Dubai’s luxury real estate market maintained growth of 1.1 percent to reach 80.6 points in May 2022 with apartment prices remaining without significant change, according to real estate consultancy firm ValuStrat.
According to the Valustrat Price Index (VPI), Dubai villas’ capital values grew at a moderate monthly rate of 1.8 percent.
Mudon and Dubai Hills Estate witnessed the lowest price increments of 0.9 percent and 1.1 percent respectively.
On an annual basis, average villa prices are 33.4 percent higher. The top performers were Arabian Ranches (40 percent), Jumeirah Islands (38.3 percent), The Lakes (35.7 percent), and Jumeirah Village (33.9 percent). Annual capital gains for citywide apartments in Dubai averaged 8.2 percent.
Best apartment performance with double-digit annual growth was registered in Palm Jumeirah (20 percent), the Burj Khalifa tower (18 percent), and Jumeirah Beach Residence (15.9 percent).
The index also highlighted the lowest annual price growth, which was seen in Dubai Production City (0.5 percent), Dubai Sports City (1 percent), and Remraam (1.7 percent).
Meanwhile, Dubai’s volume of home sales decreased 8.3 percent when compared to the previous month but was 64.4 percent higher than the same period last year.
The monthly performance saw sales of ready properties decline 16.4 percent and off-plan Oqood (contract) registrations increase 4 percent, the latter representing 45 percent of overall transactions.
Data further revealed that May saw 17 transactions valued at over 30 million dirhams, one such transaction of a 6-bedroom villa located in Emirates Hills sold for 103 million dirhams.
In addition, the report noted that properties developed by Emaar topped the sales charts by 20.3 percent. Meanwhile, Damac registered sales of 12.8 percent, Nakheel (7 percent), Select Group (5.1 percent), and Dubai Properties (3.2 percent).
Projects located in Downtown Dubai topped off-plan locations transacted in May with 18.9 percent. Meanwhile, Business Bay ranked second with 16.8 percent.
Moreover, the study suggested that Downtown Dubai broke its individual records with the greatest number of off-plan homes sold in one month since 2010. The majority of ready homes sold were in Dubai Marina (7.7 percent), Business Bay (6.6 percent), Jumeirah village (6 percent), and Damac Lagoons (5.9 percent).