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Villa Prices in Dubai’s Premier Neighborhoods Skyrocket, Doubling in Just Three Years

Posted by GPG Staff on March 23, 2024

In February, the ValuStrat Price Index (VPI) recorded 164.1 points, marking a significant annual increase of 23.1%.

New data released on Wednesday reveals that coveted villas in Dubai have seen their value more than double over the past three years, while apartment prices have risen by just over a third on average.

According to the latest figures from the ValuStrat Price Index (VPI) for February, there has been a significant annual increase of 23.1%, with the index registering at 164.1 points. Villas recorded a score of 206.1 points, while apartments reached 136.6 points. This compares to a base set of 100 points in January 2021.

The VPI is designed as a valuation-based index to reflect changes in capital and rental values experienced by typical residential and commercial properties. Updates to the VPI for Dubai’s residential capital values are provided monthly, while updates for residential rental values are provided quarterly.

In the emirate, the apartment submarket witnessed a rapid monthly price increase of 1.9%, marking a significant annual growth of 18.6%. The highest year-on-year capital appreciation in apartments was observed in Discovery Gardens (30.7%), The Greens (27.9%), Palm Jumeirah (27.4%), Town Square (23%), and Dubai Production City (22.9%).

Meanwhile, villa capital gains for the month rose by 2.4% compared to January and surged by 28% since the previous year. Leading the annual growth charts were villas in sought-after areas like Jumeirah Islands (36.1%), Palm Jumeirah (35.1%), Dubai Hills Estate (33.6%), and Mudon (29.6%).

Off-plan Oqood (contract) registrations experienced a remarkable annual surge of 32.6% and a monthly increase of 5.7%. Meanwhile, transactions for ready homes witnessed robust growth, up by 30.5% annually and 9% monthly. However, despite this growth, ready home transactions represented a relatively small share of overall residential sales for the month, accounting for only 36.9%.

In February, there were 20 transactions of ready properties priced over Dh30 million. These transactions took place in prestigious areas such as Emirates Hills, Palm Jumeirah, District One, Jumeirah Bay Island, and Dubai Hills Estate.

Leading the sales charts this month were properties developed by prominent developers such as Emaar (13.3%), Damac (9.9%), Danube (7.6%), and Sobha (5.7%). Notable off-plan locations included projects situated in Jumeirah Village Circle (11.8%), Dubai Maritime City (11.4%), Business Bay (6.4%), and Bu Kadra (4.5%).

The majority of ready homes sold were concentrated in Jumeirah Village Circle (9%), Business Bay (7.2%), Dubai Marina (5.9%), Downtown Dubai (5.8%), and Dubai Hills Estate (5.1%).

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