Dubai Real Estate Valuation Maintains Its Upward Trajectory

Dubai Real Estate Valuation

In August 2023, the ValuStrat Price Index recorded a monthly growth of 1.9% and an annual increase of 13.8%, reaching a total of 94.6 points.

The August 2023 ValuStrat Price Index (VPI) increased 1.9% monthly and 13.8% annually to reach 94.6 points. In comparison to the 100 points set in January 2014, apartments scored 78.5 and villas 120.4. ValuStrat reports a surge in apartment sales within affordable and mid-market areas. The VPI is a valuation-based price index that was created to reflect the recurring changes in capital values and rental values that typical residential and commercial properties undergo.

The apartment submarket in Dubai experienced the highest capital growth for apartments in a decade. Along with monthly capital gains of 1.5% and yearly growth rates of 10%. The Greens (14.7%), Discovery Gardens (14.1%), Motor City (13%), and Jumeirah Beach Residence (11.3%) earned the greatest apartment annual performance. Palm Jumeirah (19.3%) came in second.

Villa prices rose 2.4% from July to August and 18.2% from year to year. Nevertheless, these increases pale in comparison to the annual capital gains of 33.9% experienced by villas in February 2022. The villas in the Jumeirah Islands (24.2%), Palm Jumeirah (22.1%), Dubai Hills Estate (22%), and Emirates Hills (20.6%) had the best annual returns. Jumeirah Park, Arabian Ranches, and Jumeirah Islands all saw price increases of up to 3.2% over their 2014 highs.

Dubai Residential Citywide Capital Values

Sales of homes increased 1.1% monthly and 5.8% annually. Off-plan Oqood (contract) registrations increased 13% monthly and 40.8% annually, amounting to a three-year high of 63.5% of total monthly sales. Transactions for ready homes decreased by 26.2% yearly and 14.6% monthly. This month, apartment sales accounted for 95% of total transactions, 100% of off-plan registrations, and 88% of ready home title documents.

A ready home sold in the last eight months had an average size of 1,624 square feet and cost Dh1341 per square foot. Properties built by Emaar (10.9%), DAMAC (10.5%), Sobha (8.7%), Danube (5.6%), Nakheel (5%), ORO24 (4.3%), and Azizi (3.4%) topped the sales lists overall this month.

Projects in Business Bay (15.1%), Jumeirah Village (15%), Arjan (10.4%), Sobha Hartland (9%), and Dubai Harbour (6.5%) were among the most popular off-plan areas traded this month.

The majority of ready homes sold were in Jumeirah Village (9.2%), Dubai Marina (8.3%), Business Bay (6.5%), International City (4.9%), and Downtown Dubai (4.8%). Those areas were not the only ones to sell ready homes.

increasingly mid-market and reasonably priced locations are becoming increasingly popular in the market. International City came in fourth place among cities with the most ready-to-sell homes in August. In terms of the greatest amount of off-plan registrations, Arjan came in third. Business Bay set a new record for the most off-plan properties traded in a single month, breaking its previous mark.

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