In 2023, Dubai witnessed a remarkable 15.4% increase in apartment prices, marking the most significant annual capital growth in the sector over the past decade, as indicated by a recent report. The ValuStrat Price Index (VPI) for December reached 103.1 points, reflecting a 19.9% annual increase, with a more moderate monthly rise of 2%. This is in comparison to the baseline of 100 points established in January 2014, with the peak set at 112.9 points during the same year. Apartments registered at 84.3 points, while villas were at 133.1 points.
The report highlights a deceleration in overall price gains in the residential market in December. Capital values for Dubai's apartments and villas experienced lower monthly growth rates during the final month of 2023. Notably, secondary ready-home deals dominated transactions, while off-plan sales saw a sharp decline.
In terms of specific areas, Discovery Gardens exhibited the best apartment performance, recording a 26.4% increase compared to the same period the previous year, primarily driven by the Route 2020 Metro extension. Following closely were Palm Jumeirah (25.4%), The Greens (24.3%), Motor City (20.7%), and Town Square (19.5%). Villa prices increased by 2.3% compared to November and by 24.9% since the previous year. The top annual performers in villas were Jumeirah Islands (32.2%), Palm Jumeirah (31.9%), Dubai Hills Estate (30.6%), and Mudon (27.2%).
The report notes a significant decline of 63.7% monthly and 70.3% annually in off-plan Oqood (contract) registrations, constituting a minority share of 28.2% of overall monthly residential unit sales. Ready homes transaction volume decreased by 1.7% monthly but remained 37.5% higher than the previous year. Notably, December 2023 saw 15 transactions involving ready properties priced over Dh30 million, located in Palm Jumeirah, District One, Jumeirah Bay, Emirates Hills, and Dubai Hills Estate.
Leading the sales charts overall were properties developed by Emaar (17.3%), Damac (8.9%), Falcon City of Wonders (6%), and Nakheel (5.9%). Top off-plan locations transacted included projects in Dubai Maritime City (7.5%), Business Bay (7%), Jumeirah Village Circle (6.4%), and Dubai Harbour (5.2%). The majority of ready homes sold were in Jumeirah Village Circle (8.9%), Falcon City of Wonders (8.2%), Business Bay (7.9%), and Dubai Hills Estate (5.8%).
Source: ZAWYA