The Price of Dubai Apartments – A September Surge

The Price of Dubai Apartments - A September Surge

Good news from the heart of Dubai’s real estate market! In September, the price of Dubai apartments saw a remarkable 1.5% increase, reflecting the market’s enduring strength.

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Investors continued to flock to Dubai’s real estate, bringing forth impressive growth figures in the emirate. Recent data from Valustrat unveiled that the apartment submarket experienced significant gains, with a monthly rise of 1.6% and a whopping annual increase of 11% for September. These figures mark the most significant annual capital growth for apartments in the last ten years. The September 2023 ValuStrat Price Index, or VPI, tells the story even better, with a monthly boost of 2.1% and an impressive yearly surge of 15.1%, reaching a total of 96.6 points. For context, when we look back at January 2014 when the index started at 100 points, apartments now stand at 79.7, and villas at 123.6.

The VPI plays a vital role as a valuation-based price index, reflecting the recurring changes in capital values and rental values that residential and commercial properties typically undergo.

While capital gains in homes and apartments typically accelerate in September, this year also saw an uptick in valuation for more affordable homes in addition to premier residences. Interestingly, the market saw a decline in off-the-plan transactions but a significant uptick in the market for ready (secondary) homes.

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The Greens (17.8%), Discovery Gardens (17.1%), Motor City (15.2%), and Jumeirah Beach Residence (11.6%) took the top spots for apartment performance, with Palm Jumeirah (20%) coming in second. It’s worth noting that apartment prices are, on average, still 29.2% below the market’s mid-2014 peaks.

Villa prices also saw positive changes, rising by 2.6% compared to August and experiencing a remarkable 19.8% yearly increase. Among the top performers, we have Jumeirah Islands (26.3%), Dubai Hills Estate (24.4%), Palm Jumeirah (24.2%), and Emirates Hills (21.8%). Impressively, all villas and townhouses under the VPI’s watch have exceeded their 2014 price peaks, with the exception of Al Furjan and Jumeirah Village Triangle.

However, home sales faced a dip of 29.7% monthly and 10% yearly. Off-plan Oqood (contract) registrations declined by 55.7% monthly and 37.5% annually, making up 40% of total monthly sales. On the other hand, transactions for ready homes experienced a significant boost of 14.5% monthly and an impressive 24.4% annual increase.

What’s noteworthy is that September 2023 saw a total of 25 ready residences sold for over Dh30 million. These luxury properties were spread across Palm Jumeirah, Emirates Hills, Jumeirah Bay, Al Barari, Dubai Marina, and Dubai Hills Estate. Emaar (17.2%), Damac (13.1%), Nakheel (8.1%), and Dubai Properties (4.3%) took the top spots in sales statistics for the month.

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When it comes to off-plan transactions, projects in Arjan (13.9%), Jumeirah Village (13.7%), Business Bay (8.9%), and Damac Lagoons (8.8%) were the most popular. As for ready residences, the majority were sold in Business Bay (5.3%), Downtown Dubai (6.4%), Emaar South (5.7%), and Jumeirah Village (10.4%). Mudon set a record in September, becoming the first to trade the most off-plan properties in a single month.

The stability, transparency, and long-term property-linked visa options continue to make Dubai a safe haven for investors, particularly during uncertain times. Analysts believe that this trend is likely to persist, offering plenty of opportunities for investors in the ever-vibrant Dubai real estate market.

Dubai’s real estate market is on the rise, providing ample opportunities for both investors and end-users alike. If you’re looking to make a move in the property market, now might be the ideal time to explore your options in this dynamic environment.

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By the way, if you’re curious about the ins and outs of Dubai’s real estate market, don’t hesitate to reach out. We’re here to help you navigate the exciting world of Dubai property!

Let me know if you need any more information or have questions about this exciting market update.

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