Capital values of Dubai villas surge over 20% after relaxing COVID-19 curbs

Some properties post capital gains of nearly $246,000

Image used for illustrative purpose. Newly constructed villas are seen from the air, in Dubai, United Arab Emirates.

Image used for illustrative purpose. Newly constructed villas are seen from the air, in Dubai, United Arab Emirates.

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Capital values for Dubai’s villa properties surged by more than 20 percent in September compared to a year earlier, as buyers continue to invest in large, high-value residential units, ValuStrat’s latest price index showed. 

The biggest gainers for the month are properties in older gated communities such as Arabian Ranches, up 26.8 percent), Jumeirah Islands (26.4 percent), The Lakes (23.6 percent) and the Meadows (22.6 percent). 

As of September, the most expensive villa in the emirate can be found in Emirates Hills, where properties command a capital value of 35 million dirhams ($9.5 million), up by 21.5 percent compared to the same month last year and 2.3 percent from August. 

In Arabian Ranches, which has been popular among buyers, capital values averaged 3.37 million dirhams in September, up by nearly a million dirhams compared to a year ago. 


The apartment segment of the market, however, continues to lag behind, with popular developments posting capital gains of less than 12 percent. Apartments in Palm Jumeirah led the market, recording an 11.2 percent increase in capital gains, followed by Jumeirah Beach Residence at 9.4 percent. 

Several communities, such as Discovery Gardens, Downtown Dubai, Jumeirah Village, Dubai Sports City and Dubai Production City, saw their capital values fall between 1.4 percent and 7.1 percent. 

“The apartment submarket continues to improve, but at a much slower pace,” ValuStrat said in its report. 

Properties in Dubai have been attracting a lot of buyer interest since the easing of COVID-19 restrictions last year. This has led to price increases in several properties, particular within the villa segment. 

Expensive properties

During the month of September, 22 properties worth more than 30 million dirhams ($8.2 million) each were snapped up, surpassing the previous month’s 12 huge-ticket purchases.  

The sold properties included 18 villas and four apartments in Dubai Hills Estate, Emirates Hills and Palm Jumeirah. 

Overall, properties developed by Emaar emerged as the most popular, accounting for 24.7 percent of the sales, followed by DAMAC (8.7 percent), Dubai Properties (6.8 percent) and Nakheel (4.6 percent). 

As for off-plan properties, the most sought-after locations were Business Bay, which accounted for 9.1 percent of the sales, followed by Jumeirah Lakes Towers (7.7 percent), Sobha Hartland (7.6 percent) and Villanova (7 percent). 

Topping the sales for ready homes were properties in Business Bay (9.9 percent), Jumeirah Village (9.2 percent), Dubai Marina (6.6 percent), Akoya Oxygen (5.6 percent) and Dubai Hills Estate (4.4 percent). 

(Reporting by Cleofe Maceda; editing by Daniel Luiz) 

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