Dubai’s residential property prices continued to strengthen in October, with some villa communities posting capital gains of as much as 31 percent when compared to a year earlier, real estate consultancy ValuStrat said in its latest report.
However, sales activity has dropped, especially in the off-plan market, with overall transaction volumes falling by 4.3 percent in the same month, compared with September. Some properties outside the city centre are also still unable to recover from the capital losses last year.
The ValuStrat Price Index (VPI) for Dubai jumped 12.6 percent during the month, compared with the same period in 2020, while monthly gains accelerated from just 0.7 percent in January to 1.8 percent in the latest review.
Spearheading the growth in capital values are villa properties in popular neighbourhoods such as Arabian Ranches, which posted capital gains of 31 percent, Jumeirah Islands (30.9 percent), The Lakes (27.9 percent) and The Meadows (26.7 percent).
Within the apartment segment of the market, the top annual performers are properties in established beachfront communities in Palm Jumeirah, up by 14.6 percent, and Jumeirah Beach Residence (12.1 percent).
Areas showing negative annual performance include Jumeirah Village apartments, where capital values fell 6.3 percent, Dubai Sports city (-2.8 percent) and Dubai Production City (-2.6 percent)
While total transaction volumes have dropped, demand for ready units are still strong, registering a 6.6 percent month-on-month rise in sales. Off-plan property deals, representing nearly half (42.6 percent) of overall transactions, dropped by 15.8 percent.
Dubai’s property market also continued to attract high-net-worth individuals, with at least 19 properties worth more than 30 million dirhams ($8.1 million) snapped up in October alone. These units are concentrated in Dubai Hills Estate, Downtown Dubai, Business Bay, District One, Jumeirah Golf Estates, Emirates Hills and Palm Jumeirah.
Topping the sales charts overall are properties developed by Emaar, accounting for 30.2 percent of the transactions, followed by Damac (11.5 npercent), Nakheel (5.4 percent) and Dubai Properties (4.3 percent).
(Writing by Cleofe Maceda; editing by Seban Scaria)
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