Villas continue to drive Dubai’s property market in 2022

The ValuStrat Price Index, which measures Dubai’s residential capital value performance, grew 18.8% annually and 1.2% monthly. Villas spearheaded this trend as prices jumped 34.1% annually but saw a stable growth rate of 2.1%. Apartments witnessed single digit growth of 8.4% annually with marginal monthly growth of 0.4%.

The ValuStrat Price Index for Dubai’s residential capital values is a valuation-based index constructed to represent the monthly price change experienced by typical residential units within Dubai. The ValuStrat Price Index for Dubai’s residential rental values represents the quarterly rental change experienced by typical residential units within Dubai.

Topping the sales charts overall were properties developed by Emaar (24.3 per cent), Damac (17.7 per cent), Nakheel (6.9 per cent), Select Group (4.1%), and Dubai Properties (3.2%). Top off-plan locations transacted this month included projects located in Business Bay (15.7%), Dubai Creek Harbour (9.2%), and Downtown Dubai (8.8%). Most transacted ready homes were in Damac Lagoons (16%), Jumeirah Village (5.8%), Dubai Marina (5.6%) and Business Bay (5.3%). Apartments in Dubai Hills Estate and villas in Jumeirah Islands broke their individual records with the greatest number of homes sold in one month since 2010.

Topping the sales charts overall were properties developed by Emaar (24.3 per cent), Damac (17.7 per cent), Nakheel (6.9 per cent), Select Group (4.1%), and Dubai Properties (3.2%). Top off-plan locations transacted this month included projects located in Business Bay (15.7%), Dubai Creek Harbour (9.2%), and Downtown Dubai (8.8%). Most transacted ready homes were in Damac Lagoons (16%), Jumeirah Village (5.8%), Dubai Marina (5.6%) and Business Bay (5.3%). Apartments in Dubai Hills Estate and villas in Jumeirah Islands broke their individual records with the greatest number of homes sold in one month since 2010.

In its report, Dubai-based global consulting firm ValuStrat, said that the overall residential VPI reached 79 index points in March 2022. While this was 21% lower than the 100-point index base of January 2014, Dubai typical apartment’s VPI reached 69.5 points, however, typical villas almost touched the index base at 94.1 points.

Villa’s capital values grew at a constant monthly rate of 2.1%, some areas saw prices marginally increase such as Mudon (0.5%) and Green Community West (0.8%). On an annual basis, average villa prices jumped 34.1%.

The top performers were Jumeirah Islands (40.3%), Arabian Ranches (40.3%), The Lakes (37.1%), and Jumeirah Village (35.5%). March 2022 saw villas located in Palm Jumeirah cross their peaks of 2014 by 5.3% with 126.6 index points.

All apartment locations monitored by the valuation-based index had positive annual capital gains averaging 8.4%. Best annual apartment performance with double-digit growth was recorded in highly demanded Palm Jumeirah (21.9%), as well as established locations such as Jumeirah Beach Residence (16%), the Burj Khalifa tower (15.3%), The Views (10.9%), and The Greens (9.7%).

Home Sales Up

Dubai’s volume of home sales increased 26.1% when compared to the previous month and 146.6% higher than the same period last year. The month-on-month performance saw cash and mortgage sales of ready properties as well as off-plan Oqood (contract) registrations grow 26%, the latter representing 43% of overall transactions.

March saw 15 transactions valued over $8.17 million and one such transaction of a 6-bedroom villa located in Emirates Hills was sold for $20.41 million.

Topping the sales charts overall were properties developed by Emaar (24.3%), Damac (17.7%), Nakheel (6.9%), Select Group (4.1%), and Dubai Properties (3.2%). Top off-plan locations transacted this month included projects located in Business Bay (15.7%), Dubai Creek Harbour (9.2%), and Downtown Dubai (8.8%).

Most transacted ready homes were in Damac Lagoons (16%), Jumeirah Village (5.8%), Dubai Marina (5.6%) and Business Bay (5.3%).

Apartments in Dubai Hills Estate and villas in Jumeirah Islands broke their individual records with the greatest number of homes sold in one month since 2010. ValuStrat is a leading international consulting firm headquartered in Dubai providing Advisory, Valuations, Research, Transaction Advisory, Industrial Consulting and Due Diligence services across a diverse range of industry sectors since 1977. Offices in the UAE, UK, Saudi Arabia, Pakistan and Qatar serve over 1,000 corporate clients in the Middle East.