Dubai’s luxury real estate market sees 34% surge in value

Arabian Ranches, Jumeirah Islands lead annual villa prices
Dubai’s luxury real estate market sees 34% surge in value

The capital value of Dubai’s villas and townhouses surged 34.1 percent annually and 6.3 percent quarterly to 94.1 points,  according to a new report on Dubai’s real estate market commissioned by international consulting group Valustrat.

According to the report, apartments improved just 8.4 percent YoY, 1.4 percent QoQ reaching 69.5 points.

The study shows that the highest annual villa price gains were registered in Arabian Ranches (40.3 percent), Jumeirah Islands (40.3 percent), The Lakes (37.1 percent), and Jumeirah Village Triangle (35.5 percent), and Palm Jumeirah (35 percent).

In addition, the research highlights that villas in Palm Jumeirah have exceeded their price peaks of 2014 by 5.3 percent, achieving 126.6 points according to VPI, a valuation-based index that represents the monthly price change experienced by residential units within Dubai.

Moreover, data reveals that the highest performing apartment areas in terms of annual capital gains were Palm Jumeirah apartments (21.9 percent), Jumeirah Beach Residence (16 percent), and the Burj Khalifa tower (15.3 percent).

The report also tracked prime residential properties around Dubai, where the ValuStrat Price Index (VPI) registered 84.9 points after a 19.2 percent annual leap.

On a quarterly basis, performance was lower than in the second half of last year. Highly desired villas and apartments within prime locations saw capital values increase 31.5 percent and 10.5 percent respectively.

The findings show that the demand for high-end properties located in established prime areas has more than doubled since pre-pandemic times, as the share of sold homes worth more than 7 million dirhams, jumped to 5 percent in Q1 2022, up from 2 percent the same period in 2019.

Furthermore, demand for larger homes also increased, the average transacted unit size grew from 1,524 sq ft in 2019 to 2,014 sq ft this year, this suggests that villas and large apartments are equally in high demand.

The stories on our website are intended for informational purposes only. Those with finance, investment, tax or legal content are not to be taken as financial advice or recommendation. Refer to our full disclaimer policy here.