by Nbsrealestate
A May ValuStrat Price Index (VPI) analysis of Dubai property values revealed that strong demand lessened the effects of flooding brought on by April’s record rainfall.
Analysts at ValuStrat found that while apartment valuations grew quicker than in April, villa capital values grew at similar monthly rates.
The VPI increased by 2.1% monthly and by 27.2% annually in May, hitting 174.4 points. Against a baseline of 100 points set in January 2021, villas scored 221.2 points and apartments 144 points.
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As per JLL Mena, Q1 2024 saw robust growth in the residential sector of the United Arab Emirates. Annual increases in Dubai’s rental and sale prices typically amounted to 21%. According to JLL’s Q1 review, sales prices in Abu Dhabi jumped by an average of 7.0 percent, while rental rates increased by an average of 4.0 percent during the same period.
Data from Knight Frank indicates that in 2024, the average cost of a property in Dubai was Dh3.3 million. Depending on the kind, size, location, and amenities of the property, real estate prices in Dubai can vary significantly. Mid-range villas in suburban communities typically Dh2–3 million, while luxury penthouses or seaside mansions can easily cost more over Dh50 million. Older apartments in rural locations start at Dh400,000.
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The first apartment complex to achieve so this month is Palm Jumeirah. The ValuStrat Price Index analysis states that most established villa communities in Dubai have surpassed their prior capital value peaks starting in 2024. Apartment prices increased by 1.8% per month in May, 0.2% more than in April, for a record 22.4% annual gain.
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In April, villa capital gains were 2.4%, while year-over-year gains were 32.5%. Villas in coveted communities including Palm Jumeirah (41.7%) and Jumeirah Islands (41.1%), Dubai Hills Estate (37.5%), Emirates Hills (32.5%), and The Lakes (32.1%) are noteworthy top achievers each year.
Off-plan home contract registrations rose by 76.3 percent annually and 41.6 percent monthly, peaking at almost 10,000 transactions per month and accounting for 69.4 percent of total residential sales. In the meantime, there have been 45.9% more ready-to-move-in transactions since April, up 8.1% from the year before.
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Marina, Jumeirah Bay Island, Emirates Hills, and District One that were valued at more than Dh30 million in the premium house market.
The developer sales rankings for May were headed by Emaar (16.6%), Azizi (8.5%), Sobha (8.2%), Damac (7.9%), and Nakheel (3.6%).
Projects in Jumeirah Village Circle (10%), Ras Al Khor (9.5%), Meydan One (9.4%), and Dubai Hills Estate (7.7%) were the most popular off-plan locations transacted. In the meantime, Jumeirah Village Circle (8.3%), Business Bay (6.6%), Dubai Marina (5.9%), Downtown Dubai (5.3%), and Jumeirah Lake Towers (3.9%), saw the highest percentage of ready residences sold. The records held by Dubai Hills Estate and Discovery Gardens for the most off-plan homes traded in a single month were surpassed.
