ValuStrat study shows Dubai’s Discovery Gardens apartment had the highest annual capital growth of 32.6%, followed by The Greens (29.8%)
A report published by international consultant firm ValuStrat on Dubai residential capital values has revealed that the rate of capital growth in the apartment market is steadily approaching that of the villas.
This was part of the company’s finding published in its March 2024 report, ‘ValuStrat Price Index (VPI) – Dubai Residential Capital Values’.
Overall, the VPI reached 167.5 points during the month, marking an increase of 24.7 percent annually and 2.1 percent monthly. Villas reached 211 points, while apartments stood at 139.2 points, compared to the baseline of 100 points set in January 2021.
Apartment prices rose by 1.9 percent month on month, marking a record annual growth of 20.1 percent. Comparatively, villa capital gains were at 2.4 percent compared to February and 29.6 percent since the previous year.
Discovery Gardens showed the highest apartment capital growth in the last year, rising 32.6 per cent. This was followed by The Greens (29.8 percent), Palm Jumeirah (29 percent), The Views (24.8 percent), and Town Square (24.5 percent).
With a VPI base price of 100 in January 2021, the highest rate of growth has been in Palm Jumeirah apartments, which have increased 83.6 percent, followed by The Greens (55.2 percent) and Jumeirah Beach Residence (52 percent).
Villas in highly sought-after areas like Palm Jumeirah and Jumeirah Islands continue to show high rate of growth, both up 37.7 percent compared to last year. They were followed by Dubai Hills Estate (34.8 percent), Mudon (30.2 percent), and Arabian Ranches (29.2 percent).
The highest rate of growth in villas since January 2021 was in Jumeirah Islands (143.5 percent), followed by Palm Jumeirah (125.7 percent).
There were 15 transactions for ready properties priced over AED30 million ($8.17 million). These villas are situated in Palm Jumeirah, Dubai Hills Estate, Jumeirah Golf Estates, Emirates Hills, and Jumeirah Bay Island.
Annually, off-plan Oqood (contract) registrations increased by 14 percent, with a monthly growth of 18.2 percent. Emaar (14.9 percent) had the highest share of Oqood transactions during March 2024. It was followed by Damac (10.9 percent), Azizi (6 percent), and Sobha (5.6 percent) led the developer sales charts overall.
Top off-plan locations transacted included projects in Jumeirah Village Circle (10.9 percent), Zabeel First (6 percent), Meydan One (5.7 percent), and Business Bay (5.6 percent). Jumeirah Village Circle (9.3 percent) led in the sales of ready homes, followed by Business Bay (7.4 percent), Dubai Marina (6 percent) and Downtown Dubai (5.3 percent).
The ValuStrat Price Index for Dubai’s residential capital values is a valuation-based index constructed to represent periodic change in capital and rental values experienced by typical residential units within the city. The VPI for Dubai’s residential capital values is updated every month, while the VPI for Dubai’s residential rental values is updated every quarter.
The VPI applies weighted averages using data samples representing up to 95 percent of the market across the city and is built by expert registered valuers.
Supply data covers 38 defined areas in Dubai including non-freehold areas. Only completed and under-construction projects are included and do not include announced projects, and projects in design phase.