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Villa prices in Dubai have reached pre-pandemic levels and are inching towards their 2014 peak, but capital gains are slowing down, according to ValuStrat.
In its November 2021 Dubai Residential Capital Values report, the real estate consultancy said the cost of purchasing a house in Palm Jumeirah is now just 3.9 percent below its 2014 peak.
Capital values for villas also registered annual increases of as much as 34.1 percent, but the monthly change ranged from 2 percent to 2.9 percent.
“The Valustrat Price Index shows villa capital gains slowing to sustainable levels,” ValuStrat said.
As for villa prices, the highest were recorded in older communities, such as Arabian Ranches, where prices were up 34.1 percent, annually and 2.7 percent on a monthly basis, and in Jumeirah Islands, where prices rose by 33.9 percent annually and 2.9 percent monthly.
In the Lakes, prices were up 31.2 percent annually and 2.9 percent monthly, while in the Meadows, the numbers jumped by 29.9 percent on an annual basis and 2.5 percent on a monthly basis.
The smallest villa price increases were in Mudon, which recorded jumps averaging 19.4 percent on an annual basis and 1.5 percent on a monthly basis.
Apartment prices
Premium apartments saw some of the biggest price increases, with the Palm Jumeirah seeing the highest at 17.3 percent annually and 2 percent monthly.
Prices in Jumeirah Beach Residence rose annually by 14.6 percent and monthly by 1.1 percent.
Areas where apartment prices have decreased on an annual basis are Dubai Production City, where they fell 1.6 percent annually with no monthly change, and Dubai Sports City, where they fell by 1.9 percent annually and remained unchanged month-on-month.
ValuStrat’s overall residential price index for Dubai is now 75.1, compared to the base of 100 from the peak of January 2014, an annual increase from November 2020 of 14.7 percent and a 1.6 percent increase on a monthly basis.
November was, however, the busiest month since 2010 for apartment title deed registrations in high demand areas, such as Business Bay, Jumeirah Village and Dubai Hills Estate, the consultant said.
Overall transaction volumes for the month of November 2021 were up by 40.6 percent from October 2021 and 126.7 percent from November 2020.
There were 16 transactions worth more than 30 million dirhams ($8.17 million), including a villa in Emirates Hills which sold for 92 million dirhams.
(Reporting by Imogen Lillywhite; editing by Cleofe Maceda)
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© ZAWYA 2021
