According to a recent industry report, demand for off-plan homes in Dubai soared to unprecedented levels in May, with the Emirate witnessing a 41.6% increase month-on-month in new contract registrations, totaling over 10,000 transactions and constituting 69.4% of total residential sales.
Dubai experienced a 76.3% year-on-year surge in off-plan registrations for residential properties last month, driven by communities like Jumeriah Village Circle and Meydan One.
May saw record-breaking sales of off-plan homes in Discovery Gardens and Dubai Hills Estate.
The volume of transactions for ready homes increased by 8.1% year-on-year and by 45.9% since April, with significant sales in Jumeirah Village Circle (8.3%), Business Bay (6.6%), Dubai Marina (5.9%), Downtown Dubai (5.3%), and Jumeirah Lake Towers (3.9%).
In total, 16 transactions were completed for ready properties priced over 30 million UAE dirhams in Palm Jumeirah, Dubai Marina, Jumeirah Bay Island, Emirates Hills, and District One.
Capital Values
Despite the record rainfall in April that affected several communities, strong demand for residential properties in Dubai prevented any significant impact on home valuations, according to ValuStrat.
Villa capital values increased at similar monthly rates in May, with Palm Jumeirah properties seeing an annual capital value increase of 41.7%. Other notable annual gains were observed at Jumeirah Islands (41.1%), Dubai Hills Estate (37.5%), Emirates Hills (32.5%), and The Lakes (32.1%).
Most established villa communities in Dubai have surpassed their previous capital value peaks from 2014, with the Palm Jumeirah becoming the first apartment area to achieve this milestone this month.
Monthly apartment prices rose by 1.8% in May, surpassing April’s 0.2% increase, resulting in a 22.4% annual growth rate. Discovery Gardens (34%), The Greens (32.6%), Palm Jumeirah (30.9%), Al Quoz Fourth (29.1%), and The Views (28.1%) saw the highest apartment capital gains compared to the previous year.
The VPI report also highlighted a trend of increasing average prices per square foot alongside shrinking average home sizes in Dubai, raising concerns about property valuations.
