Residential capital values in Dubai have continued to strengthen, rising by an average of 1.2 percent in April 2021, the highest monthly increase in seven years, according to ValuStrat Price Index (VPI).
The latest price movement could be an indication that the city’s property market has reached its bottom, the research firm said in a report released on Sunday.
“On a citywide level, capital values of residential homes commenced a growth trend, a promising signal that the property market has indeed bottomed out. Clear improvements in capital values were observed in 96 percent of locations monitored by the VPI,” the report said.
Still behind annually
However, compared to last year, last month’s capital values were still 6.5 percent lower.
Dubai’s property market had been subdued prior to the coronavirus pandemic, owing mainly to a huge supply glut. Property prices and rents fell further last year after the global lockdown, but industry sources claimed that there have been signs of improvement on the back of rising demand from homebuyers.
The market has recently seen a surge in sales of villas, townhouses and flats, as the stay-at-home and social distancing trend has prompted many to own a piece of private property in the UAE.
Sales, capital values
Last month, residential sales volumes went up by 16.9 percent from March, with off-plan units posting a 30.1 percent increase and ready homes seeing an 8.7 percent increase in sales.
Among the locations monitored by ValuStrat, freehold communities saw capital values rise monthly by 1.1 percent on average.
In the apartment category, units in Jumeirah Beach Residence, Palm Jumeirah and Jumeirah Lakes Towers posted an average monthly growth of 1.5 percent, while villas in freehold locations saw values rise by 2.1 percent.
In Jumeirah Islands, units posted higher monthly gains, at 3 percent.
(Reporting by Cleofe Maceda; editing by Seban Scaria)
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