The value of villa properties in Dubai continues to increase on the back of strong demand, with the segment registering double-digit gains annually, according to data from ValuStrat.
Average capital values for villa and apartment communities tracked by the ValuStra Price Index (VPI) went up by 6.3 percent in August compared to July and 1.5 percent compared to a year ago.
Houses in Dubai now have a weighted average capital value of more than 1.6 million dirhams ($435,000), or 869 dirhams per square foot. Residential sales prices for the year are pegged at 1,020 dirhams per square foot on average, up from 894 dirhams last year.
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Residential capital values increased fastest in villa communities, with Arabian Ranches posting the highest annual gains of 22 percent compared to the previous month.
Properties in Jumeirah Islands also saw their values increase by 20.8 percent, while Dubai Hills Estate and The Lakes rose by 18.5 percent and 18.3 percent, respectively.
As for apartments, which represent 87 percent of Dubai’s residential market, a third of the residential units still posted negative annual growth, but a third were stable and a third had single-digit annual capital growth.
The winners in the apartment category were Palm Jumeirah properties, with an average of 6.8 percent annual increase in capital values, Jumeirah Beach Residence (6.1 percent), Al Furjan (4.6 percent) and Al Quoz Fourth – Al Khail Heights (4.1 percent).
Buyers have been snapping up residential units in Dubai since the lockdowns were lifted and mobility restrictions eased last year. The strong buyer interest has been partly driven by low prices and attractive mortgage interest rates.
Sales transaction volumes in August went up 49 percent when compared to July. Sales are still dominated by completed units, which posted a 57 percent increase.
Emaar emerged as the top performer for the month, accounting for 21.5 percent of the overall sales, followed by Nakheel (8.6 percent), Damac (6.1 percent) and Dubai Properties (6.1 percent).
(Reporting by Cleofe Maceda; editing by Daniel Luiz)
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