ValuStrats March 2024 real estate report had several key trends and insights, reflecting the dynamic nature of the real estate sector in Dubai. Here is a quick breakdown of our key takeaways from the report.

How Dubai’s Property Market Performed in March 2024

Annual and Monthly Changes in Residential, Villa, and Apartment Prices in Dubai:

• Apartment prices rose by 1.9% since February 2024 and a year on year growth of 20.1%.
• Villa prices rose by 2.4% since February 2024 and a year on year growth of 29.6%.

Change in Capital Values:

• The ValuStrat Price Index (VPI) for Dubai’s residential capital values reached 167.5 points in March, showing a 24.7% annual increase and a 2.1% monthly growth.
• Villas reached 211 points, while apartments stood at 139.2 points, compared to the baseline of 100 points set in January 2021.

Volume of Transactions in Ready and Off-Plan Property Sales:

• Off-plan Oqood registrations increased by 14% year on year, with a monthly growth of 18.2% since February 2024.
• Ready properties actually saw a – 0.5% volume of transactions since this time last year however there was an increase of 4.8% since February 2024, representing 34.2% of total monthly residential unit sales. This indicates that more capital is being deployed to off-plan, signalling long term investor sentiment in the Dubai real estate market.

Market Share of Property Developers in Dubai:

• In March 2024, Emaar, the citys blue chip developer, led developer sales with 14.9% market share, followed by Damac 10.9%, Azizi 6%, and Sobha 5.6%. It is good to see incumbents taking market share and companies like Azizi and Sobha making their mark.
• Top off-plan locations transacted included Jumeirah Village Circle, Zabeel First, Meydan One, and Business Bay. JVC represents a lower overall price point whereas Zaabeel first, Meydan One and Business Bay are attractive due to their location closer to the centre of the city.

Top Areas for Transactions:

• Ready homes were predominantly sold in Jumeirah Village Circle, Business Bay, Dubai Marina, Downtown Dubai, and International City. JVC, Business Bay and Dubai Marina have a huge plethora of options to choose from (Dubai Marina has over 180 towers alone) is why they take the top spots in terms of market share. Downtown Dubai is the most sought after square kilometer in Dubai because of Burj Khalifa (the tallest tower in the world) and Dubai Mall (the largest mall in the world with an annual traffic of 105 million visitors in 2023).
• Areas with the highest capital growth for apartments included Discovery Gardens, The Greens, Palm Jumeirah, The Views, and Town Square. Discovery Gardens is adjacent to Furjan where Dubai Metro has extended the red line, making it easier for passengers to commute to the main areas of Dubai. The Greens and The Views (which is the Greens) is a popular area with a vibrant expat community and an attractive price point for first time buyers. Palm Jumeirah is unique in that it is a fully established community and has 56 kilometers of coastline, adding huge value to properties and their residents. Town Square is further away from the centre of Dubai but it’s cohesive community, quaint community and low price point continues to attract first time buyers.

Capital Gains for Villas and Apartments in Specific Areas:

• Villas in Palm Jumeirah and Jumeirah Islands experienced a growth of 37.7%, along with Dubai Hills Estate 34.8%, Mudon 30.2%, and Arabian Ranches 29.2%.
• Apartments prices in Discovery Gardens increased by 32.6%, The Greens 29.8%, Palm Jumeirah 29%, The Views 24.8%, and Town Square 24.5% showing significant capital growth.

Is The Dubai Real Estate Market Rising?

The Dubai residential real estate market in March 2024 demonstrated robust growth in capital values, with apartments and villas both experiencing positive trends. The market dynamics were influenced by a mix of off-plan and ready home transactions, with key developers and prime locations driving sales and capital gains across the city. As always, stay tuned to Viewit for the latest in Dubai Real Estate news!

If you’d like to compare March with the February report, then head over here.

Source: ValuStrat March 2024 report