Capital values for ready homes in Dubai continued to grow despite ready home transactions taking a hit in June 2024, property consultancy ValuStrat said in a new report.

All established freehold villa communities surpassed their previous capital value peaks from 2014, with the average freehold villa valuation crossing the 10 million UAE dirhams ($2.72 million) mark.

Month on month, apartment prices rose by 1.9%, rising 23.4% year-on-year (YoY) in June. The highest yearly apartment capital gains were recorded in Discovery Gardens (34.5%), The Greens (33.7%), Palm Jumeirah (31.1%), and The Views (29.7%). 

Villa capital gains were up 2.4% in June month-on-month (MoM) and 33.4% YoY.

Villas on Palm Jumeirah registered the highest gains of 43.1%, followed by Jumeirah Islands (42.5%), Dubai Hills Estate (38.5%) and Emirates Hills (33.6%), ValuStrat said. 

Meanwhile, off-plan (Oqood) residential property registrations increased by 33% YoY last month, but fell 31.9% MoM. 

The number of ready home transactions reported annual declines, unseen since the onset of the pandemic, falling 19.4% from May and 2.6% YoY, the report noted.

(Editing by Seban Scaria