Pioneering Dubai’s only valuation-based real-time house price index over six years ago, the ValuStrat Price Index was a market innovator that offered improved intelligence and transparency to the city’s real estate cycle as an alternative to transactional and listings data. The VPI for Dubai residential capital values reported monthly statistics covering 34 most influential locations that represent 95% of the freehold market.
As the city grows, with some significant new developments handing-over in more recent years, Dubai has seen new locations become established and start to influence the overall citywide real estate performance.
For this reason, ValuStrat is excited to announce that the VPI for Dubai residential capital values has evolved to now capture 95% of the city’s freehold market. Three more villa areas and five more apartment locations have been added to the fixed basket of properties that our expert team of RICS Registered Valuers appraise each month.
As such, the index now covers more neighbourhoods and offers users improved statistical insight at both an overall city level and within each project monitored – including the newly added areas. Furthermore, ValuStrat’s Research Department can extract data at a granular level for many specific requirements such as price point, asset type, bedroom number, market segment, etc.
The original villa basket includes the Meadows, Arabian Ranches, Jumeirah Park, Al Furjan, The Lakes, Palm Jumeirah, Victory Heights, Jumeirah Village, Jumeirah Islands, and Emirates Hills. Added villa locations are Dubai Hills Estate, Mudon and Green Community (DIP).
The original apartment basket comprised of Dubai Marina, International City, Jumeirah Lake Towers, Downtown Dubai, Business Bay, Motor City, Palm Jumeirah, Jumeirah Village, Discovery Gardens, Dubai Sports City, Jumeirah Beach Residence, The Greens, The Views, Remraam, Dubai Production City, and the Burj Khalifa building. Additional apartment locations now added are Dubai Silicon Oasis, Al Furjan, Dubailand Residence Complex, Town Square and Al Quoz Fourth (Al Khail Heights).
The second quarter of 2021 saw the citywide VPI grow 3.8% when compared to the previous quarter, a result of which canceled almost all the capital losses of the previous year. June 2021 registered 69 points; this is compared to 69.4 points the same period last year. There is still a long way to reach 100 points registered as of January 2014, not to mention the peak of June 2014 which saw the citywide VPI achieve 112.9 points.
Villas which represent 13% of the residential market in Dubai, spearheaded this growth with a quarterly growth of 7% and an annual growth of 6.3%. All villas monitored by the basket saw improvements not seen since 2014. The highest annual capital gains were found in The Meadows, Arabian Ranches, The Lakes, Jumeirah Islands, Dubai Hills Estate and Mudon.
Quarterly, the apartments VPI grew 1.7%, but did not perform as well as villas on an annual basis, still declining 4.8% when compared to last year. Jumeirah Beach Residence, Palm Jumeirah, Downtown Dubai, and the Views where the best quarterly performers. This is contrasted with Jumeirah Village, Dubai Marina, The Greens and Dubai Production City. However, compared to last year, apartments in International City, Palm Jumeirah, Jumeirah Beach Residence, Al Furjan, and Al Quoz Forth, have written off their capital losses of last year.
The VPI covering Dubai’s residential market is only one of the market-leading stable of real estate market indices offered by ValuStrat. There’s the VPI specialising in Dubai’s office market, plus VPIs reporting on Abu Dhabi and other regional residential markets.
© Press Release 2021
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