Robust Demand Mitigates Flood Impact on Dubai Housing Prices

Saturday, 15 June 2024

Despite record rainfall and flooding in April, Dubai’s housing market demonstrated remarkable resilience and continued its upward trajectory in May. This robust performance is underscored by the ValuStrat Price Index (VPI) for residential capital values.

Market Performance Overview

• VPI Growth: The VPI recorded a notable 27.2% year-on-year increase, reaching 174.4 points in May.
• Villa Values: Remained stable with consistent monthly gains.
• Apartment Values: Accelerated significantly compared to April.

Current Values:

• Villas: 221.2 points
• Apartments: 144 points
• Baseline: 100 points (January 2021)

UAE Residential Market Expansion

• Dubai’s Growth: JLL MENA highlighted a 21% annual increase in both sale prices and rentals during Q1 2024.
• Abu Dhabi Trends: Rental rates rose by 4%, while sales prices saw a 7% increase.

Average House Prices:

• Dubai: Dh3.3 million
• Price Range: From Dh400,000 for older suburban apartments to over Dh50 million for luxury beachfront properties.

Top-Performing Communities

Several established villa communities surpassed expected 2024 capital value peaks:

• Palm Jumeirah: Leading with a 22.4% annual growth in apartment values.
• Top Apartment Areas:
  • Palm Jumeirah: 30.9%
  • Al Quoz Fourth: 29.1%
  • The Views: 28.1%
  • Discovery Gardens: 34%
  • The Greens: 32.6%

Villa Capital Values

In May, villa capital values showed:

• Monthly Increase: 2.4%
• Year-on-Year Increase: 32.5%

Leading Gains:

• Palm Jumeirah: 41.7%
• Jumeirah Islands: 41.1%
• Dubai Hills Estate: 37.5%
• Emirates Hills: 32.5%
• The Lakes: 32.1%

High-End Market Activity

• Prime Residential Sales: 16 properties sold over Dh30 million in elite neighborhoods including Palm Jumeirah, Dubai Marina, Jumeirah Bay Island, Emirates Hills, and District One.

Off-Plan Home Market Surge

• Monthly Increase: 41.6%
• Annual Increase: 76.3%
• Transactions: Surpassed 10,000 per month (69.4% of all residential sales)

Leading Developers in May:

• Emaar: 16.6%
• Azizi: 8.5%
• Sobha: 8.2%
• Damac: 7.9%
• Nakheel: 3.6%

Key Transaction Areas

• Off-Plan Transactions:
  • Jumeirah Village Circle: 10%
  • Ras Al Khor: 9.5%
  • Meydan One: 9.4%
  • Dubai Hills Estate: 7.7%
• Ready-to-Move Homes:
  • Downtown Dubai: 5.3%
  • Jumeirah Lake Towers: 3.9%
  • Dubai Marina: 5.9%
  • Business Bay: 6.6%
  • Jumeirah Village Circle: 8.3%

New Records:

• Dubai Hills Estate and Discovery Gardens set new records for off-plan home transactions in a single month.