Tuesday, 02 January 2024 12:17 GMT

Dubai: Silicon Oasis Drives Property Valuation Growth In August


(MENAFN- Khaleej Times)

Dubai Silicon Oasis drove apartment valuation growth in the emirate last month, fuelled by affordability, major road access, and future metro connectivity. However, villas still outpace apartments in capital appreciation across the city, a recent report showed.

The ValuStrat Price Index rose to 227.3 points in August 2025, marking a slower 1.4 per cent monthly increase, and a 22.1 per cent annual rise since August last year. Villa values climbed to 302.1 points, while apartments reached 178.5 points, all benchmarked to a base of 100 in January 2021.

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Villa capital values grew 1.8 per cent monthly, with an annual gain of 27.1 per cent. The strongest annual performers included villas in Jumeirah Islands (39.8 per cent), Palm Jumeirah (39.3 per cent), Green Community West (25.7 per cent), and The Meadows (25.5 per cent). Meanwhile, the lowest annual gains were recorded in Mudon (8.8 per cent).

Dubai's freehold villas are, on average, valued at 190 per cent above post-pandemic levels and 76 per cent higher than the previous market peak in 2014. Apartment prices rose by 1.1 per cent monthly, recording an annual growth of 17 per cent. The highest yearly capital rises were seen in Dubai Silicon Oasis (22.7 per cent), The Greens (22.6 per cent), Remraam (22 per cent), Dubailand Residence Complex (21.9 per cent), Dubai Production City (21.1 per cent), and Town Square (21 per cent).

In contrast, the lowest annual capital gains were recorded in International City (10.2 per cent), Discovery Gardens (13.5 per cent) and Business Bay (14 per cent). Apartment valuations in Dubai are, on average, 77 per cent higher than post-pandemic levels, yet remain 2.5 per cent below the market peak recorded in 2014.

Oqood registrations for off-plan homes declined 22.4 per cent monthly but were 22.5 per cent higher annually, accounting for 77.8 per cent of total residential sales. Meanwhile, ready secondary-home transactions fell 20.6 per cent since July and 2.5 per cent as compared to August last year.

Top off-plan locations transacted included projects in Business Bay (10 per cent), Jumeirah Village Circle (8.3 per cent), Dubai Investment Park Second (7.8 per cent), Dubai Science Park (5.1 per cent), Dubai South (4.1 per cent), and Dubailand Residence complex (3.9 per cent). Off-plan home sales in Business Bay reached their highest monthly level on record. Meanwhile, the majority of ready home sales were concentrated in Jumeirah Village Circle (10.1 per cent), Business Bay (5.4 per cent), Dubai Marina (4 per cent), Downtown Dubai (3.7 per cent), International City (3.4 per cent), Dubai Creek Harbour (3.1 per cent), and Dubai Sports City (3.1 per cent).

“Dubai's housing market maintained its upward trajectory in August, with capital values reaching fresh highs despite a slower monthly pace of growth. Villas remain the key driver, though select apartment communities are emerging as standout performers,” said Saadain Lari, director and head of marketing, ValuStrat.

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