Dubai’s Residential Market Records Highest Quarterly Capital Gains in a Decade
Dubai’s residential market has achieved its highest quarterly capital gains in ten years, driven by increased property demand in the emirate, according to a report by property consultancy ValuStrat.
In the third quarter, the ValuStrat Price Index (VPI) for Dubai’s residential market rose by 6.1% on a quarterly basis. Villa prices increased by 7.6%, and apartment prices by 4.8% during this period.
On an annual basis, the VPI showed a 15.1% increase, with villa and apartment prices rising by 19.8% and 11% respectively.
In the villa segment, The Palm Jumeirah, Jumeirah Islands, Dubai Hills Estate, and Mudon recorded the highest capital gains. In the apartment category, Discovery Gardens, The Greens, The Palm, and Dubailand Residence Complex were the top performers.
Prime properties also recorded capital gains in the third quarter, with prime property valuations rising by 16.5% annually and 6.6% quarterly.
The VPI for prime villas reached a new 10-year high, with capital gains of 20.2% year on year and 8.5% quarterly. Valuations of prime apartments rose 13.6% annually and 5.2% quarterly.
Dubai’s property market has rebounded strongly from the pandemic-induced slowdown, supported by government initiatives and the economic gains generated by Expo 2020 Dubai and higher oil prices.
During the third quarter, Dubai’s non-oil private sector economy saw robust business activity, with sales growth hitting its highest in more than four years.
The emirate’s economy expanded by an annual 3.2% in the first half of 2023 to Dh223.8 billion ($60.9 billion).
The emirate recorded 11,308 ready or secondary home sales transactions during the third quarter, with an average ticket size of Dh2.3 million.
Residential asking rents in the emirate rose by 27.2% in the third quarter compared to the same period last year, with villa and apartment rents increasing by 38.7% and 19.1% on an annual basis.
Based on developer completion schedules, the number of new build units entering the market this year was estimated at 53,715 homes.
Total project completions in the first nine months of this year stood at 21,507 apartments and 2,068 villas.
During the third quarter, office sales transactions grew by 9% year on year to 631, with Business Bay retaining its position as the most popular choice for office sales.
Publish Date: October 24, 2023
Source: https://www.thenationalnews.com/business/property/2023/10/24/dubai-residential-market-records-highest-quarterly-capital-gains-in-a-decade/
Discover Your Dream Luxury Property in Dubai with Smart Zones Luxury Properties: hidubai@smartzonesproperties.com
+971 529604444 / +971 43614555