(MENAFN- Khaleej Times)
Dubai's residential property capital gains amounted to an average of 27.5 per cent year-on-year, greatly exceeding initial forecasts, a study showed on Monday.
In December 2024, the ValuStrat Price index (VPI) increased by 1.7 per cent month-on-month, reaching 200.7 points, marking a slight deceleration from November's 1.8 per cent growth and the fourth consecutive softening since August 2024. Villa values climbed to 259 points, while apartments reached 162.8 points, all benchmarked to a base of 100 points in January 2021.
The VPI has now officially doubled compared to its level during the pandemic. Growth continues to decelerate, ValuStrat data showed.
The VPI regularly marks to market a sample of properties that represent more than 90 per cent of the Dubai residential and commercial markets.
Apartments vs Villas Villa monthly capital gains were at 2.1 per cent, and 31.6 per cent since last year. Notably, top annual performers include villas in highly sought after areas like Jumeirah Islands (42.5 per cent), Palm Jumeirah (42.3 per cent), Emirates Hills (32.3 per cent), and Dubai Hills Estate (32.1 per cent). The lowest gains were seen in Mudon (13.5 per cent) and Jumeirah Village Triangle (21.5 per cent), with Mudon remaining relatively stable for the fourth consecutive month. Apartment prices increased by 1.4 per cent month-on-month, achieving an annual growth of 23.6 per cent. The areas with the highest yearly capital gains included The Greens (31 per cent), Palm Jumeirah (28.3 per cent), The Views (27.1 per cent), as well as Town Square and Discovery Gardens, both at 26.4 per cent. In contrast, the lowest capital value increases were observed in International City (16.9 per cent) and Dubai Sports City (18.1 per cent).
Off-plan vs ready homes
Oqood (contract) registrations for off-plan homes increased 26.3 per cent monthly and 513.8 per cent annually, representing 71.1 per cent of all home sales in December. The volume of ready secondary home transactions declined by 8.7 per cent monthly and down 3.4 per cent annually. Prime Home Sales There were 29 transactions for ready properties priced over Dh30 million, situated in Blue Waters Island, Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, Downtown Dubai, Business Bay, and District One.
Top developers and locations
December 2024 saw Emaar (12.8 per cent), Damac (8.1 per cent), Binghatti (7.6 per cent), Azizi (5.9 per cent) and Sobha (4.6 per cent) lead the developer sales charts overall.
Top off-plan locations transacted included projects in Jumeirah Village Circle (13.1 per cent), Business Bay (10.2 per cent), and Dubailand Residence Complex (5.7 per cent).
Meanwhile, most ready homes sold were located in Jumeirah Village Circle (9.1 per cent), Dubai Marina (6.6 per cent), Business Bay (6.1 per cent), Downtown Dubai (4.8 per cent), and Jumeirah Lake Towers (2.9 per cent).
December saw Business Bay and Dubailand Residence Complex break their individual record with the highest number of off-plan homes traded in one month.
Throughout the year, the city witnessed more than 168,000 residential transactions across freehold markets, Emirates NBD data showed. A total of 114,480 under construction units were sold in 2024. Their share in overall transactions has increased from 54 per cent in 2023 to 68 per cent in 2024.
In line with the spectacular growth in demand, the number of units launched across the city has also reached an all-time-high. A total of 142,000 units were launched across Dubai in 2024.
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