August was an impressive testament to the thriving real estate sector in Dubai, with notable price increases across the city’s real estate landscape. According to the latest report by ValuStrat, the Dubai real estate market is experiencing a remarkable upswing, with annual capital appreciation of 10%, the highest growth rate in a decade.
As the real estate consultancy ValuStrat reports, both apartments and villas recorded considerable price increases last month. Apartments in particular recorded impressive monthly value gains of 1.5% and an astonishing annual growth rate of 10%, underscoring the city’s robust real estate market. Palm Jumeirah (19.3 % annual increase), The Greens (14.7 %), Discovery Gardens (14.1 %), Motor City (13 %) and Jumeirah Beach Residence (11.3 %) contributed to this growth.
Haider Tuaima, head of research at ValuStrat, noted the increase in sales of apartments in affordable and mid-rise developments. In August, International City ranked fourth in the number of apartments ready for sale, while Arjan secured third place in the number of off-plan registrations. Business Bay also broke its own record, setting the bar for the highest number of off-plan properties traded in a single month.
Dubai’s real estate market shows no signs of slowing down and real estate experts expect growth to continue. A growing population, favorable tax policies and a positive global economic climate continue to be key factors driving optimism in this sector.
Dubai’s real estate market has shown remarkable resilience, recovering strongly from the slowdown caused by the COVID-19 pandemic. Government initiatives such as residence permits for pensioners and remote workers have contributed to this recovery. In addition, the expansion of the 10-year golden visa program, the economic benefits of Expo 2020 in Dubai and rising oil prices have contributed significantly to the dynamism of the real estate market.
According to a report by Knight Frank, residential real estate prices in Dubai recorded a remarkable 17% annual increase in the second quarter, marking the tenth consecutive quarter of growth. quarter in a row. Property prices also rose by 4.8% in this period compared to the previous quarter.
According to the ValuStrat report, villa prices in Dubai rose by 2.4% in August compared to July and by an impressive 18.2% year-on-year. Although this growth is considerable, it is below the annual capital growth of 33.9 % recorded in February 2022. Leading the way in terms of price increases for villas were Jumeirah Islands (24.2%), Palm Jumeirah (22.1%), Dubai Hills Estate (22%) and Emirates Hills (20.6%).
Jumeirah Park, Arabian Ranches and Jumeirah Islands in particular exceeded their 2014 price peaks by up to 3.2%.
In real estate registrations, off-plan Oqood (contract) registrations increased 13% monthly and a remarkable 40.8% annually, accounting for a three-year record 63.5% of total monthly sales, according to ValuStrat. However, sales of prefabricated houses fell by 14.6% per month and 26.2% per year.
Apartments continued to dominate the market, accounting for 95% of all transactions, 99% of off-plan registrations and 88% of title deeds for completed apartments.
Among the top performers in August were projects in Business Bay, Jumeirah Village, Arjan, Sobha Hartland and Dubai Harbour. According to ValuStrat, most of the completed homes in Jumeirah Village, Dubai Marina, Business Bay, International City and Downtown Dubai were sold in August.
Emaar (10.9 %), Damac (10.5 %), Sobha (8.7 %), Danube (5.6 %) and Nakheel (5 %) were the leading developers and topped the sales charts.
Separately, global real estate consultancy CBRE reported that the total volume of transactions in Dubai’s residential market reached 11,328 in August, the second highest monthly figure and a 22% increase year-on-year. In the year to date, 79,605 transactions have been recorded, which represents a new record.
In the 12 months to August, average property prices rose by 19.6%, with apartments increasing by 20% and villas by 17.3%. While sales rates for apartments are still 9.6% below the 2014 peak, sales rates for villas have exceeded the 2014 level by 8.7%, according to CBRE’s findings.
Downtown Dubai proved to be the top performer in the residential segment, recording the highest sales rate per square foot at Dh2,460, while in the villas category, Palm Jumeirah recorded the highest sales rate per square foot at Dh4,915.
In the rental market, Taimur Khan, Head of Research for the Middle East and North Africa at CBRE in Dubai, noted a slight slowdown in the growth rate. Average rents in Dubai rose by 21.7% in the year to August, with apartment rents increasing by 21.5% and villa rents by 22.6% in the same period.
Source: www.thenational.ae
