Dubai villa prices double in four years
In the past decade, there are rates that have reached levels which were previously unattained.
According to the new Novus report published in September 2019, eighty five agrees on the notion that the bought villas today are at least two times higher than four years ago.
In the last available data from ValuStrat, one of the realtors, said that Palm Jumeirah was among the many villas that experienced a resurgence in value in the last ten years, where prices have also reached new highs since the most recent, other than the previous $3,000,000.00, was US$ 1.7million in 2014.
The records indicate that the Dubai real estate market has been, even more, busy with the pricing of each square foot of land going for an average rate of 1431 dhs, which is an 18% rise, for the previous year, according to data from Better Homes.
The ValuStrat Price Index (VPI) which is based on ValuStrat’s databased ValuStrat December 2013 grew month on month by 2.2% to 186.1 points and represented an annual change of 28.8%. There were 237.7 points achieved by the villas and the apartments were at 152.5 points where 100 points is the across engineering baseline that was set in January 2021.
This index is computed as the valued-price index, and it is used as a measure of a periodic development of capital and rental value of typical residential and commercial properties.
According to the ValuStart report for August, Dubai’s residential capital gains continue to perform better than the market’s expectations. More than 15,000 sales worth Dh 38.55 billion were recorded in the month of August despite the weak supply and less than April 44,386 transactions level than expected above average demand, the betterhomes data showed.
Although falling back to historically low average sizes, off-plan registration spearheaded the market while ready property sales suffered further downtrends.
Monthly villa capital gain was seen at 2.4 percent and up 33.5 percent from the previous year. Riches accrued in Palm Jumeirah (42.9 percent) villas, Jumeirah Islands (42.4 percent), Dubai Hills Estate (36.9 percent), and Emirates Hills (34.3 percent) dominate ranks over a periodic report.
Apartment prices increased 2 percent month on month with 24.4 percent annual growth records staying intact. On the list of places which posted the highest capital gains in apartments compared to last year, the top four included Discovery Gardens (34.2 per cent), The Greens (33.6 per cent), Palm Jumeirah (30.3 per cent) and The Views (30 percent).
Off-plan vs ready homes
Monthly and year-on-year increases of new Oqood registrations in respect of sold off-plan homes remain within the limits of 3.4 percent and 46.4 percent respectively-this indicates that three out of every four homes sold this month belong to this category. The value of ready secondary-home transactions shrank to fifteen point eight percent in a month, but was ten point two above the corresponding period of last year.
The off-plan segment still holds a dominant share by making up 68 percent of the total volume and number of transactions with 10,285 deals amounting to Dh 22.9 billion which is the highest so far in terms of value, Betterhomes data said. “Developers are experiencing excessive interest from the buyers who are wishing to take the newly upcoming supply on the market,” a spokesperson for Better Homes said.
Borrowers continued to dominate the picture in August, as they made up for 58 per cent of all transactions, a slight increase from 51 per cent registered the previous month in the mortgage market, data from Better Homes indicates. Actual purchase of properties by investors accounted for the larger share of 60% of the buyers. “The figures of this month reflect what we have always reported, which is the continuing strength of the Dubai real estate market where off-plans are still active driving sales growth and other areas are performing well on sales,” explained the spokesperson for Better Homes.
Prime home sales
There were 13 deals for ready properties worth more than Dh30 million in Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, Dubai Hills Estate, Bluewaters Island, Jumeirah Golf Estates and District One.
Top developers and locations
In the giving month of August 2024, ValuStrat data highlighted that Emaar (22.5 per cent), Sobha (8.7 per cent), Azizi (5.8 per cent), Damac (5.5 per cent) and Danube (5.2 per cent) held the sales records among developers. Concerning the off-plan sales transactions, most deep inside the contract locations included these rate projects in Jumeirah Village Circle (9.6 per cent), Dubai South (8.3 percent), and The Valley (7.7 percent). As for the majority of other ready homes, the areas which had the highest number in sales were Jumeirah Village Circle (7.2 percent), Business Bay (5.7 percent), Dubai Marina (5.3 percent) and Downtown Dubai (5.3 percent).
Emaar remains the highest scheming developers as per the assessment of Betterhomes with DH 7.49bn off-plan sales followed by Sobha Group (a DH 2.40bn Meraas 1.66bn, or Ellington Properties 1.13 bn and East & West International Group 0.93 bn respectively. In the total and transaction of completed sales, Emaar again occupied the first direction followed by Sobha Group with 1131 transactions, Azizi with 650 transactions, Samana Developers with 507 and Danube with 481 transactions.
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