According to a ValuStrat study, the apartment in Dubai’s Discovery Gardens experienced the highest annual capital growth at 32.6%, with The Greens following closely behind at 29.8%.
A report on Dubai residential capital values, published by the international consulting firm ValuStrat, indicates that the rate of capital growth in the apartment market is gradually catching up with that of villas.
This information was part of the company’s findings published in its March 2024 report, ‘ValuStrat Price Index (VPI) – Dubai Residential Capital Values’.
In total, the VPI reached 167.5 points for the month, indicating a 24.7 percent annual increase and a 2.1 percent monthly increase. Villas reached 211 points, while apartments reached 139.2 points, compared to the baseline of 100 points set in January 2021.
Apartment prices saw a monthly increase of 1.9 percent, marking a record annual growth of 20.1 percent. In comparison, villa capital gains were at 2.4 percent compared to February and 29.6 percent compared to the previous year.
Over the past year, Discovery Gardens experienced the highest apartment capital growth, rising by 32.6 percent. This was followed by The Greens (29.8 percent), Palm Jumeirah (29 percent), The Views (24.8 percent), and Town Square (24.5 percent).
Using a VPI base price of 100 in January 2021, Palm Jumeirah apartments have seen the highest growth rate, increasing by 83.6 percent, followed by The Greens (55.2 percent) and Jumeirah Beach Residence (52 percent).
Villas in highly sought-after areas such as Palm Jumeirah and Jumeirah Islands continue to exhibit a high rate of growth, with both showing an increase of 37.7 percent compared to last year. They were trailed by Dubai Hills Estate (34.8 percent), Mudon (30.2 percent), and Arabian Ranches (29.2 percent).
The highest growth rate for villas since January 2021 was observed in Jumeirah Islands (143.5 percent), followed by Palm Jumeirah (125.7 percent).
There were 15 transactions for ready properties priced over AED30 million ($8.17 million). These villas are located in Palm Jumeirah, Dubai Hills Estate, Jumeirah Golf Estates, Emirates Hills, and Jumeirah Bay Island.
On an annual basis, there was a 14 percent increase in off-plan Oqood (contract) registrations, accompanied by a monthly growth of 18.2 percent. Emaar held the largest share of Oqood transactions in March 2024 at 14.9 percent, followed by Damac at 10.9 percent, Azizi at 6 percent, and Sobha at 5.6 percent, leading the developer sales charts overall.
Key off-plan locations transacted included projects in Jumeirah Village Circle (10.9 percent), Zabeel First (6 percent), Meydan One (5.7 percent), and Business Bay (5.6 percent). Jumeirah Village Circle (9.3 percent) led in the sales of ready homes, followed by Business Bay (7.4 percent), Dubai Marina (6 percent), and Downtown Dubai (5.3 percent).
Dubai’s residential capital values are tracked by the ValuStrat Price Index, a valuation-based index representing periodic changes in capital and rental values for typical residential units in the city. The index is updated monthly for capital values and quarterly for rental values, using weighted averages derived from data samples covering up to 95 percent of the market and compiled by registered valuers.
Supply data encompasses 38 defined areas in Dubai, including non-freehold areas, and includes only completed and under-construction projects, excluding announced and projects in the design phase.
