fbpx Video
Image

News

Dubai real estate: Off-plan villa sales skyrocket 209% MoM in May, apartments up 38.55%

Dubai real estate: Off-plan villa sales skyrocket 209% MoM in May, apartments up 38.55%

Dubai property sales transactions in May rose 47 percent from April

The areas with the biggest rises in villa purchases were Haven (pictured), Tilal Al Ghaf, Dubai South, Reportage Village and MBR City

The property market in Dubai  witnessed substantial growth in residential transactions during May 2024 compared to the previous month.

According to new figures released, transactions for off-plan villas increased sharply by 209 percent in May versus April.

For all the latest business news from the UAE and Gulf countries, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our Youtube page, which is updated daily.

 

New pricing dynamics will come into play in Dubai property market

New pricing dynamics will come into play in Dubai property market

Whether off plan or ready property, there is a gradual shift in pricing dynamic

In red-hot real estate markets, it becomes hard to value properties as many factors come into the equation: location, size, layouts, proximity to the sea, renovations, in addition to comparable launches taking place at hyperkinetic speeds.

Typically, during this time, there are a number of buyers who go for older properties, as the gap rises between prices of older and newer builds. Built into this decision is the factor that there are a number of renovations needed for older builds.

Dubai property market soars in 2024: Villas lead record-breaking price surge

Dubai property market soars in 2024: Villas lead record-breaking price surge

Market analysts predict a banner year for Dubai's residential property market in 2024, with villa prices poised for exceptional capital gains

Dubai’s residential property market is forecast to scale new heights in 2024, with analysts predicting record-breaking home prices. This growth is expected to be particularly pronounced in the villa segment, which is projected to witness significant capital gains.

According to ValuStrat’s April Price Index (VPI) for Dubai, apartment prices are steadily rising, although at a more moderate pace than villas. Villas were the standout performers, with the average valuation per square foot surpassing AED 2,000 for the first time in a decade. This milestone marks a doubling of villa prices since the pandemic, surpassing previous market peaks and even 2014 highs.

Capital gains in the villa segment are also expected to continue. While not quite surpassing the record set in 2022, which saw a 34. 1% price increase – the highest in a decade–analysts predict gains exceeding that mark. The April VPI data bolsters this prediction, revealing a 2.4% month-on-month rise and a staggering 31. 2% year-on-year increase in villa capital gains.

The strong performance of the Dubai real estate market can be attributed to the increase in high-net-worth individuals moving to the city, supported by government initiatives and a growing business environment. This has led to a higher demand for luxury properties, which impacts the overall market trends. Additionally, low interest rates are expected to continue, making borrowing costs favourable and encouraging more investors to enter the real estate market.

The VPI reached 170.8 points in April, marking a 26.1% annual increase, with a monthly rise of 2%. Villas reached 216 points, while apartments stood at 141.4 points, compared to the baseline of 100 points set in January 2021.

Apartment prices rose by 1.6%, marking a record annual growth of 21.3%. Among the areas with the highest apartment capital gains compared to the previous year are Discovery Gardens (33.4%), The Greens (31.4%), Palm Jumeirah (29.9%), The Views (27.1%), and Al Quoz.

Villa capital gains were at 2.4% compared to March and 31.2% since the previous year. Notably, top annual performers were villas in highly sought-after areas like Palm Jumeirah (40.1%), Jumeirah Islands (39.5%), Dubai Hills Estate (36.2%), Green Community West (31.4%), and Emirates Hills (31.1%).

Off-plan Oqood registrations saw a significant increase of 76.4% annually but experienced a monthly decline of 9.4%. Ready home transactions also rose by 9.5% since last year, although they dropped by 24.2% since March, making up only 30% of monthly residential unit sales. Notably, there were 27 transactions for ready properties priced over AED 30 million, with prime locations including Palm Jumeirah, Arabian Ranches, Jumeirah Bay Island, Emirates Hills, and Downtown Dubai.

Dubai’s property market is thriving, in line with the emirate’s economic objectives. The government is working to strengthen Dubai’s status as a global business and tourism hub, and a successful real estate sector is essential for attracting foreign investment and skilled individuals. As Dubai advances, the focus remains on the residential property market, with experts forecasting continued growth until 2024.

Dubai: New office spaces being pre-leased as demand outstrips supply

Dubai: New office spaces being pre-leased as demand outstrips supply

Many landlords and free zones are upgrading older office stocks to meet the growing demand

Demand for office spaces is outstripping supply in Dubai and the emirate could well run out of Grade A office space next year.

With the inflow of foreign companies that are setting up regional headquarters in Dubai, many landlords and free zones are upgrading older office stocks to meet the growing demand and capitalise on higher rents

Prathyusha Gurrapu, director and head of research and consultancy at Cushman & Wakefield Core, said developers and free zones are expected to initiate the next phase of office projects, however, no relief is expected until 2026 due to a minimum of a two-to three years' time for construction.

“As most of the upcoming Grade A supply is highly likely to be pre-leased, limited substantial new supply is expected to be brought to market in the foreseeable future, deepening the supply shortage,” she added.

Gurrapu revealed that with office demand continuing to outstrip supply and most handovers being pre-leased, occupancy levels are to see sustained upward pressures with Grade A office occupancy expected to be near 95 per cent by the end of 2024 and hovering at near full by 2025 – albeit, contrary to other global markets which are at much lower office occupancy levels.

She expects city-wide occupancy levels of Grade A, B and C Stock to breach 90 to 92 per cent over the next year as the demand trickles down to Grade B and Grade C spaces.

Behnam Bargh, managing director at CRC, said one particularly significant trend within the office segment was the 15 per cent increase in the secondary sales price, indicating heightened demand and value appreciation in this sector. This upward trend in secondary sales prices underscores the attractiveness of Dubai's office market to investors and businesses alike, potentially fueled by factors such as economic stability, infrastructure development and favourable regulatory frameworks.

According to Betterhomes, the average sale price of the secondary office market stood at Dh1,062 per sqft, up from Dh927 for the same period last year. the prices have risen above the Q1 2019 level of Dh933 per sqft, but still below the previous years.

No new supply in Q1

Prathyusha Gurrapu revealed that no new office supply was handed over in the first quarter of this year.

“We foresee over 1.85 million sqft of gross leasable area to be handed over in 2024, including the next phases of Expo City Dubai, Wasl Tower, Millennium Downtown, and the next phases of Innovation Hub and Dubai CommerCity,” she said.

She added that many major landlords and free zones are activating projects now to address the growing demand.

“Immersive Tower in DIFC is the first of multiple developments within DIFC expected to begin construction along with DMCC and Tecom set to launch their next phases. We are also witnessing a rising number of landlords upgrading older office stock to address rising demand and capitalise on higher rents. A small section of secondary stock is expected to be brought to market as some technology and services sector tenants consolidate – albeit marginally easing the supply crunch,” she added.

Dubai’s residential segment thrives with 24.7 percent annual growth in Q1 2024: Report

Dubai’s residential segment thrives with 24.7 percent annual growth in Q1 2024: Report

The office sector soars with 29.9 percent annual increase during the quarter

The Dubai real estate market experienced during the first quarter of 2024 significant expansion in both its residential and commercial sectors, as evidenced by the most recent data from the Valustrat Price Index (VPI)

In the residential segment, the VPI for capital values demonstrated a substantial increase of 6.4 percent on a quarterly basis and 24.7 percent annually, reaching 167.5 points, compared to the base of 100 points in Q1 2021.

This growth was primarily driven by a 5.7 percent quarterly and 20.1 percent annual surge in apartment valuations, particularly in mid-affordable communities.

Villas remained resilient and reached 211 points, marking a 29.6 percent annual increase and achieving the highest values in ten years for prime villas.

Additionally, the office sector witnessed remarkable growth, with office unit valuations surging by 29.9 percent annually, reflecting sustained demand for high-quality office spaces.

The VPI for office capital values reached a record high of 194.2 points, indicating a robust market.

Prominent business districts such as DIFC, Jumeirah Lake Towers, and Business Bay experienced significant annual growth, further solidifying Dubai’s position as a regional business hub.

In the industrial market, the VPI for Dubai Industrial capital values reached 135 points, demonstrating a 15 percent annual increase and a 3.5 percent quarterly increase in logistical warehouses.

This growth underscores the resilience and adaptability of Dubai’s industrial sector, which continues to attract investments and expand its presence.

Furthermore, strong rental growth was observed across all segments, further emphasizing the robust performance of the real estate market.

Residential asking rents

Residential asking rents experienced an annual surge of 11.7 percent, with villa rentals increasing by 6.1 percent annually and apartment rents growing by 16.4 percent on a yearly basis.

Moreover, the latest data from the ValuStrat Price Index highlights the strength and dynamism of Dubai’s real estate market.

The report emphasizes that with consistent growth in the residential, office, and industrial sectors, Dubai remains an attractive destination for investors and businesses, positioning itself as a premier choice for real estate investment in the region.

Dubai real estate market achieves record-breaking 73% surge in off-plan buyers

Dubai real estate market achieves record-breaking 73% surge in off-plan buyers

Dubai recorded a substantial 35% quarter-on-quarter increase in transaction volumes during Q1 2024

Dubai’s residential real estate market witnessed record-breaking growth in the first quarter of 2024, driven by a substantial surge in off-plan property sales, according to a new report by Savills.

Off-plan sales skyrocketed 73 percent quarter-on-quarter, accounting for 63 percent of total transactions in Q1, the property consultancy said in its Dubai Residential Market report for the first quarter of 2024. The jump came amid strong demand for high-quality properties from reputable developers coupled with attractive incentives offered during project launches.

“Dubai’s residential real estate market has continued an upward trajectory fueled by factors such as population growth, economic resilience, business confidence, and a thriving tourism and hospitality sector,” said Andrew Cummings, head of residential agency at Savills Middle East.

 

Overall transaction volumes climbed 35 percent from the previous quarter to an all-time high of 35,100 units in Q1. Apartments dominated, making up 83 percent of all deals, with villas accounting for the remainder.

Market gravitates to southeast Dubai micro-markets

Dubai
Dubai apartment deals worth at least that much jumped 51 percent quarter-on-quarter, according to Savills. Image: Shutterstock

Market activity was concentrated in southeast Dubai submarkets like Jumeirah Village Circle, Arjan, Dubai Hills Estate, Meydan One, and Damac Hills 2. Demand also remained robust in areas such as Business Bay, Downtown Dubai, Dubai Marina, and Jumeirah Lake Towers.

“In the first quarter of 2024, approximately 5,000 units were introduced to the market,” said Alec James Smith, Savills’ director of sales and leasing for the Middle East.

 

“Notable launches included Mercedes-Benz Places, Claydon house by Ellington, Franck Muller Aeternitas Tower in Dubai Marina, and Vida Dubai Hills by Emaar, with apartments making up 84 percent of these launches, signaling the confidence in this market segment going ahead.”

Dubai property transactions exceeded $2.7 million

While affordable options attracted many buyers, luxury properties remained in demand. Over 1,000 transactions exceeded 10 million dirhams ($2.7 million) in Q1, up 41 percent from a year earlier. Apartment deals worth at least that much jumped 51 percent quarter-on-quarter.

 

The Palm Jumeirah, Business Bay, and Bluewaters Island led upscale locations for apartment prices per square foot, while Dubai Hills, Palm Deira, District One, and Tilal Al Ghaf saw the highest rates for villas and townhouses.

 

Dubai rents rose 7% on average

Rental rates increased by an average of 7 percent across the emirate, with apartments up 8 percent and villas rising 6 percent quarter-on-quarter.

A revised rental index may push some area rents up 10 percent to 20 percent in the period ahead, potentially prompting tenants to consider relocating, downsizing, or buying a home, Cummings said.

“Dubai’s residential real estate market is expected to perform well in the near future, given the upward trend in both rentals and capital value appreciation,” he said.

 
Dubai real estate: Property market shatters records with over 30,000 transactions in Q1 2024

Dubai real estate: Property market shatters records with over 30,000 transactions in Q1 2024

Dubai’s real estate market shattered records in Q1 2024 with over 34,000 transactions, driven by robust demand amidst supply constraints, a thriving luxury segment, and rising rental prices across communities

The Dubai real estate market witnessed an unprecedented surge in the first quarter of 2024, shattering previous records with over 34,000 transactions recorded at the Dubai Land Department (DLD), according to a new report.

 

This staggering figure marks a 20 percent increase compared to the same period in 2023, cementing Q1 2024 as the most active quarter on record for the emirate’s property sector.

The removal of the UAE from the FATF Grey List has played a pivotal role in fueling the current bull market, which shows no signs of slowing down, the Betterhomes Q1 2024 Residential Market Report said.

 

“With over 34,000 transactions recorded at the DLD, Q1 2024 was officially the biggest quarter on record for the Dubai real estate market. With the removal of the UAE from the FATF Grey List, the current bull market looks set to be with us for some time to come. Sales agreed at Betterhomes went up in March by 34 percent year on year, and those newly signed deals will be reflected in the next quarter’s numbers, so we can expect the market to remain hot, despite the recent rains,” Richard Waind, Chief Executive Officer of Betterhomes, said.

Dubai price trends to persist throughout 2024 and into 2025

While the population grew by 26,000 in the first three months of 2024, only approximately 6,500 new homes were handed over, exacerbating the supply-demand imbalance.

This shortage of ready homes has had a ripple effect on rental stock, resulting in a 22 percent year-on-year increase in rental prices.

 

The villa segment has been particularly impacted by the lack of supply in the secondary market, according to Waind.

Although secondary sales fell in Q1, the off-plan market more than compensated, with over one project launched every single day between January and March. Off-plan sales now account for a staggering 58 percent of all transactions in the emirate.

Looking ahead, as Dubai continues to attract talent at its current rate, Waind anticipates current price trends to persist throughout 2024 and into 2025.

 

Relief from the supply crunch is not expected until 2026 and 2027, when a substantial volume of supply is projected to enter the market, potentially easing pressure on prices, Waind said.

The much-expected fall in interest rates, however, appears unlikely to materialise until later in the year, as US employment numbers continue to outperform expectations, and US inflation remains stubbornly high, he added.

Surging demand and buyer profiles

The influx of new residents has fueled a 31 percent increase in buyer leads at Betterhomes, with average selling prices for apartments and villas rising by 3 percent and 13 percent, respectively.

Notably, the percentage of mortgage buyers has climbed to 37 percent, compared to 35 percent in the same period last year, driven by the rising number of end-users, which now stands at 63 percent.

Indians and British nationals continue to dominate as top buyers at Betterhomes, alongside prominent buyer nationalities from France, Italy, and the UAE, underscoring Dubai’s enduring appeal to investors worldwide.

Luxury market thrives

Dubai’s luxury market, defined as transactions over AED15 million, has experienced a 30 percent increase, solidifying the city’s status as a global hotspot for high-end branded residences, the report said.

Secondary transactions have surged by 46 percent, while off-plan transactions have seen a modest 4 percent increase.

The secondary market is led by 82 transactions in Palm Jebel Ali, followed by Palm Jumeirah with 48 and Sobha Hartland II (MBR) with 33.

In the off-plan market, Palm Jumeirah recorded 51 transactions, with Dubai Water Canal and Dubai Healthcare City II trailing with 28 and 18 transactions, respectively.

Tenant leads at Betterhomes rose by 8 percent, fueled by a 7 percent increase in apartment leads and a notable 19 percent surge in villa leads, while townhouse leads declined by 19 percent.

However, leasing transactions saw a substantial 21 percent decrease, aligned with the rising rental prices, encouraging tenants to renew existing contracts rather than seek new properties.

The recent revision of the RERA Calculator index in March could potentially lower rents over the long term, as the previous iteration caused a significant gap between renewal and open market prices, leading to stagnant market conditions and limited property supply.

Rental price trends in Dubai

Rental prices across all communities witnessed consistent increases compared to Q1 2023.

Dubai Creek Harbour saw the most significant surge in apartment rentals, soaring by 28 percent year-on-year, while Jumeirah Park experienced a substantial 24 percent year-on-year increase in villa rentals.

Palm Jumeirah, Dubai’s most exclusive residential area, reinforced its prominence, with average apartment rentals reaching AED 261,500 and villa rentals at AED 855,878.

Dubai Hills Estate boasts an average apartment rental of AED 190,649, followed by Jumeirah Beach Residences at AED 158,928. Among villa communities, Jumeirah Golf Estates stands out with an average rental of AED 617,486, followed by Emirates Living at AED 373,722.

The surge in rental prices can be attributed to factors like the growing presence of high-net-worth individuals (HNWIs) in the city and the UAE’s removal from the Financial Action Task Force (FATF) grey list, enhancing Dubai’s attractiveness as a destination for investment and residency.

New Real Estate Project in Dubai Every 18 Hours

New Real Estate Project in Dubai Every 18 Hours

Property Monitor, a real estate research and data platform, revealed that the Dubai property market has witnessed an increase in new project launches on the map. On average, more than one project is launched daily in 2024, with a rate of a new project every 18 hours.

According to the March report from Dubai's real estate market, issued by the institution and obtained by Al Bayan, the initial figures for new projects on the map showed the launch of nearly 10,000 units for sale during March. These projects contributed to an unprecedented total of 34,000 units distributed across 120 projects in the first quarter of this year, with a new launch occurring approximately every 18 hours.

The report highlights that this significant level of activity in the market does not indicate any signs of decline in the near future. With the recent announcement of three new major developments, along with the upcoming launch of the "Ghaf Gardens" project designed by Majid Al Futtaim, the available options for eager investors and end-users are expected to grow further.

The diverse mix of projects and options presents an increasing challenge for developers. Intense competition, high buyer expectations, and greater scrutiny in choosing the best investments are all factors to consider.

The report also notes that established and larger developers will be better positioned to benefit from the comprehensive market due to their pricing flexibility. Specialized developers focusing on luxury and ultra-luxury segments will also have a strong presence, even with fewer project launches, as they target specific markets.

New entrants to the market, competing face-to-face with the mentioned developer groups, may find it challenging to differentiate themselves. They might need to revert to traditional commercial offerings that appeal to buyers, such as gifts, post-delivery payment plans, and developers covering land and property fees.

March Performance

After several months of slight price increases, property prices in Dubai saw a significant rise in March. Monthly gains reached 2.37%, marking the largest monthly increase since May 2023.

According to the Property Monitor's Dynamic Price Index (DPI), current property prices in Dubai stand at AED 1,325 per square foot, representing a 7.4% increase compared to the previous peak in September 2014.

This substantial increase can largely be attributed to the significant differences in trading prices between existing homes and newly planned properties, deviating from the trend that began in late 2023.

Luxury Properties

The report also highlights the market share of properties priced above AED 10 million, which increased to 2.7% in March. Additionally, properties priced between AED 5 million and AED 10 million accounted for 6.3% of sales, while those in the AED 3 million to AED 5 million range saw their share rise to 13.8% of market sales during March.

UAE floods: Dubai developers offer free repairs, vow action after record rainfall

UAE floods: Dubai developers offer free repairs, vow action after record rainfall

Residential communities and villas in Dubai have suffered the brunt of the record-breaking downpours in the UAE this week, with many properties being submerged in floodwater.

Many families across the emirate have seen their belongings destroyed, while some have been forced to evacuate their homes after the highest ever-recorded rainfall in over 75 years brought country to a standstill.

For all the latest headlines follow our Google News channel online or via the app.

As the country works overtime to clear water-clogged streets, felled trees, and abandoned cars, property developers have said they also are doing their bit to help residents in affected homes and neighborhoods.

A person stands surrounded by flood water caused by heavy rains, in Dubai, United Arab Emirates, April 17, 2024. (Reuters)
A person stands surrounded by flood water caused by heavy rains, in Dubai, United Arab Emirates, April 17, 2024. (Reuters)

Free home repairs

Emaar properties said it will repair homes damaged in the Dubai rains and floods at no cost to the residents.

The Dubai-based company said on Friday that it would repair all old and new homes within Emaar communities if damaged by the unprecedented downpour that brought the country to a near standstill.

“…I am pleased to announce that Emaar will undertake the repair of all properties within our communities that have been damaged by the recent rains at its own cost to ensure that our residents can return to their daily lives as swiftly and smoothly as possible,” Emaar founder Mohamed Alabbar said in the statement.

“…as a responsible company, we undertake to provide all possible support in such situations including complete repair of our customers’ homes,” the founder said.

 

The Emirati owned company also said dedicated teams are coordinating with local authorities to assess and restore damaged properties and communities. This includes clearing water logging.

Residents with damaged properties can contact the call center to file their claim.

Emaar operates the world’s largest mall, Dubai Mall, and built the world’s tallest building, the Burj Khalifa. It also built and operates a range of residential communities and shopping centers across the city, and accounts for 30 percent of Dubai’s property market.

It is a Public Joint Stock Company (PJSC) listed on the Dubai Financial Market.

 

A person walks in flood water caused by heavy rains, with the Burj Khalifa tower visible in the background, in Dubai, United Arab Emirates, April 17, 2024. (Reuters)
A person walks in flood water caused by heavy rains, with the Burj Khalifa tower visible in the background, in Dubai, United Arab Emirates, April 17, 2024. (Reuters)

Prompt action

DAMAC, another popular Dubai-based real estate developer, told Al Arabiya English that it worked round the clock with the local government authorities and private firms to safeguard its residents.

“To ensure the safety and safe-guarding of our residents and their properties, we have been working round the clock by liaising with all governmental and private bodies,” a DAMAC spokesperson said Friday.

They reportedly deployed several tankers to collect floodwaters and maintained direct lines to hear from residents.

The day after the storm, the DAMAC spokesperson said that major accumulation of flood water was drained from the roads and sand removal trucks were deployed. “This helped us ensure that residents were not stuck on the roads due to the flooding. Our landscaping team were also active to clear the aftereffects of the winds and storm,” the spokesperson added.

“Our ground staff, with strong support from the local authorities worked tirelessly to ensure that the communities were up and running in a matter of hours after the storm hit, to ensure that there was no disruption to the communities and its members.”

The teams on the ground will carry fogging treatment and routine pest control in the water features to “contain infestation of any kind,” the spokesperson said.

The DAMAC official added that their upcoming projects and developments have not been affected by the flooding and that the safety of their workers were ensured.

Cars drive through a flooded street during a rain storm in Dubai, United Arab Emirates, April 16, 2024. (Reuters)
Cars drive through a flooded street during a rain storm in Dubai, United Arab Emirates, April 16, 2024. (Reuters)

Temporary accomodation

Hotels across Dubai reported a surge in guests looking to escape flooded homes, low on supplies and some without water and electricity access.

Near Mudon, one of the worst affected areas of Tuesday’s record rainfall, Sid Sattanathan, general manager of the Radisson Hotel in Damac Hills, told Al Arabiya English that the hotel has been “very, very busy.”

“We are almost full because of the flooding,” he said. “People who have issues at home – especially in Mudon – have come to stay.”

“Also, restaurant sales have doubled as there are no food deliveries (because of the weather). People are turning to hotels.”

But, Sattanathan said the hotel has, in turn, seen food supplies dwindle because of the demand and the struggle of getting supplies through flood-stricken roads to the hotel.

“We almost ran out of food because we had so many guests,” he said. “We are in a strategic location, so we have seen a lot of demand. Our team had to be really creative and went to the local supermarket to get supplies.”

The record rainfall meant many members of staff had to sleep in the hotel as they could not venture on the roads to head home.

“We turned our meeting rooms into bedrooms to house our team members as they could not travel,” said Sattanathan.

People look out at floodwater covering a major road in Dubai, United Arab Emirates, Wednesday, April 17, 2024. (AP)
People look out at floodwater covering a major road in Dubai, United Arab Emirates, Wednesday, April 17, 2024. (AP)

Financial assistance, discounts

Emirati businessman Khalaf Ahmad al-Habtoor said he would donate more than $4 million to assist UAE nationals in repairing damaged homes.

The Habtoor Group, which owns several hotels in Dubai, reportedly provided free hotel stays for affected Emirati families.

Other hotels have offered discounted rates to Dubai residents.

Vehicles drive on a flooded road during torrential rain in the Gulf Emirate of Dubai on April 16, 2024. (AFP)
Vehicles drive on a flooded road during torrential rain in the Gulf Emirate of Dubai on April 16, 2024. (AFP)

Country-wide impact

UAE financial capital Dubai and neighboring Sharjah were most affected by the rain-storm that was the highest ever in a 24-hour period since climate data recording began in 1949.

Although remote working and learning, and weather warnings, were put in place by the government ahead of time, the downpour affected everything from homes to public spaces and parking lots.

Low-lying areas saw high levels of stagnant water, while many of the country’s world-class highway systems were gridlocked. Motorists were trapped in vehicles submerged under water or stranded on the roadside due to the rising water levels around them.

On Friday, Filipino officials confirmed to the media that three UAE residents had died from the weather. Two women suffocated inside their vehicle during the flooding while one man died when his vehicle fell into a sinkhole. The latest reported death brings the death toll to at least four after a 70-year-old man was swept away in his vehicle in Ras al-Khaimah.

Public transportation networks also came to a halt, with water levels and damage to metro station infrastructure impacting travel.

Flights were also disrupted by the weather, with some of the country’s international airports slowly restarting service on Friday for select travelers.

The UAE President has ordered a review of the country’s infrastructure, directed support be provided to families impacted by the severe weather, and ordered the transfer of affected families to safe locations.

A view of aeroplanes parked on a flooded tarmac seen through a plane's window at Dubai International Airport, United Arab Emirates, April 16, 2024, is seen in this screen grab obtained from social media. (Reuters)
A view of aeroplanes parked on a flooded tarmac seen through a plane's window at Dubai International Airport, United Arab Emirates, April 16, 2024, is seen in this screen grab obtained from social media. (Reuters)
Dubai real estate: Rate of capital growth for apartments is nearing that of villas

Dubai real estate: Rate of capital growth for apartments is nearing that of villas

 

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.

YOUR TRUSTED COMPANY

Source Properties Real Estate consultants are RERA (Real Estate Regulatory Agency) registered.

ORN 342