Dubai’s residential villa market is showing signs of stability following “record” sales, but the downtrend continues in the apartment category, according to ValuStrat’s Price Index (VPI) report for November.

ValuStrat said most villa freehold locations in the emirate saw prices stabilized for the month, fuelled by high demand from investors looking to take advantage of record low prices per square foot. Some areas, including Arabian Ranches, The Lakes, Palm Jumeirah and Jumeirah Islands, even posted minor increases in capital values.

Within the apartment segment, capital values declined by 0.9 percent monthly. Among those posting declines were residential units in Dubai Sports City, Jumeirah Beach Residence and The Greens.

Overall, cash-based sales in November jumped by 14.4 percent compared to October, which saw the lowest rate of monthly decline in three years.

Existing ready homes saw an increase of 22.3 percent, while off-plan sales also went up, but at a lower monthly rate of 9.4 percent.

However, November’s transactions for off-plan properties were still 51.5 percent lower compared to last year, but ready homes improved by 18.1 percent.

Resilience

ValuStrat said the villa market has clearly demonstrated higher resilience when compared to apartments due to the high demand from price-conscious buyers.

 “With villa capital values in some communities showing signs of recovery, coupled with record registered home sales transactions, November saw [the price index] steady at 65.4 points,” ValuStrat said.

When compared to last year, however, the index is still 13.8 percent lower.

“On a citywide level, capital values of residential homes are yet to stabilise, as the broader downward trend continued, albeit, at a much slower pace. However, this month saw positive exceptions in some established villa segments,” said the report.

(Reporting by Cleofe Maceda; editing by Seban Scaria)

Cleofe.maceda@refinitiv.com 

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