Dubai villa values have experienced a remarkable increase of 32.4% over the past year, with prices rising by 2.2% in October, according to data from the latest ValuStrat report on Dubai’s residential property market. The report highlights significant growth across prime villa areas, including Jumeirah Islands, where property values have tripled since 2021. Other high-performing villa communities include Palm Jumeirah, which saw a 42.5% annual increase in capital values, Dubai Hills Estate at 33.7%, and Emirates Hills at 33.1%. In contrast, areas such as Mudon and Jumeirah Village Triangle saw more moderate gains, with Mudon remaining stable for the second month in a row, showing a year-on-year increase of 17.1%.
The apartment sector also saw substantial growth, with prices rising by 1.7% monthly and 24.3% annually. Leading areas for apartment capital gains included The Greens at 32.4%, Discovery Gardens at 30.9%, Palm Jumeirah at 29.9%, and The Views at 28.4%. More modest annual gains were noted in International City at 16.8% and Dubai Sports City at 17.5%.
In October, the ValuStrat Price Index (VPI), which tracks capital and rental value changes across typical residential properties, increased by 1.9% to 193.8 points, reflecting a slight slowdown from September’s 2.1% growth. The index has risen by 28.3% year-on-year. Villa values reached a high of 248.5 points, while apartments recorded 158.1 points, based on a benchmark of 100 points from January 2021.
“The speed of capital growth has slowed for the second consecutive month, as more apartment communities approach previous price peaks,” the ValuStrat report noted, indicating a possible stabilization in some areas of Dubai’s fast-paced market.
Surge in Off-Plan Sales and High-Value Transactions
The market has also seen a notable increase in off-plan sales, with Oqood contract registrations for these properties rising 13.1% month-on-month and nearly doubling annually with a 99.7% increase. Off-plan sales represented almost three-quarters of all property transactions in October. Ready secondary-home sales volumes grew by 11.7% monthly and 30.1% on a yearly basis, illustrating broad investor interest in Dubai’s property market.
The demand for prime properties also remains strong. October recorded 21 transactions for ready homes valued over AED 30 million, with notable high-end sales in Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, Al Barari, Dubai Hills Estate, and District One.
Dubai Real Estate’s Appeal Continues Amid Global Uncertainty
Dubai’s real estate market has been on a robust upward trajectory since the pandemic, emerging as a safe haven for high-net-worth individuals seeking stability amid global uncertainty. Factors such as the emirate’s surging non-oil economy, the introduction of long-term residencies for property investors, and its attractiveness to top talent are contributing to sustained demand. Experts expect this trend to continue, with no immediate decline anticipated in the demand for Dubai’s real estate.
