Dubai's Residential Values Rise Almost A Fifth In Past 12 Months

(MENAFN- Khaleej Times)

Dubai's residential values have risen almost a fifth in the past 12 months, cementing the city's status as a safe haven and major global real estate hub, data showed on Wednesday.

According to research from ValuStrat, the surge was driven primarily by villas, which continued to outperform apartments. Villa values soared 25.1 per cent year-on-year, reaching 323.9 points, while apartments posted a more modest 14.2 per cent annual rise, standing at 185.9 points. Both segments are indexed to a January 2021 base of 100.

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The ValuStrat Price Index (VPI) for Dubai's residential market climbed to 240.4 points in December 2025, marking an annual increase of 19.8 per cent and a monthly gain of 1.3 per cent. This growth exceeded earlier forecasts of 18 per cent, underscoring sustained investor confidence and robust demand across the emirate.

ValuStrat noted that Dubai's freehold villas are now valued 211 per cent above post-pandemic levels and 89 per cent higher than the 2014 market peak, reflecting unprecedented appreciation in prime communities. Among villas, Jumeirah Islands led the pack with a staggering 37.2 per cent annual growth, followed by Palm Jumeirah (35.9 per cent), Green Community West (23.6 per cent), and The Meadows (23.4 per cent). Even traditionally stable areas such as Victory Heights and Mudon recorded gains of 19.5 per cent and 10.7 per cent, respectively.

Apartments, while trailing villas, also showed resilience. The strongest performers included Remraam (21.8 per cent), Dubai Silicon Oasis (20.7 per cent), The Greens (20 per cent), Dubailand Residence Complex (19.5 per cent), and Town Square (18.9 per cent). On the other end, International City (9.7 per cent), Discovery Gardens (11.2 per cent), and Business Bay (12.4 per cent) saw more modest increases. Overall, apartment prices are now 85 per cent above post-pandemic levels and have edged past their 2014 peak by 2 per cent.

Transaction activity mirrored this bullish sentiment. Off-plan sales dominated the market, accounting for 76 per cent of all residential deals in December, with registrations up 30.8 per cent year-on-year. Ready-home transactions dipped 9.7 per cent from November, but still posted a 3 per cent annual increase. Among off-plan hotspots, Majan (11.3 per cent), Dubai Investment Park Second (9.9 per cent), and Jumeirah Village Circle (7.6 per cent) topped the charts. For ready homes, Jumeirah Village Circle led with 10.9 per cent of sales, followed by Business Bay (6.3 per cent), Dubai Marina (4.6 per cent), and Downtown Dubai (3.5 per cent). Mudon set a record for its highest monthly ready-home trades.

Ultra-prime transactions continued to make headlines, with 27 ready properties selling for over Dh30 million, including 10 deals above Dh50 million. These were concentrated in elite enclaves such as Palm Jumeirah, Dubai Hills Estate, Al Barari, Jumeirah Islands, District One, and Emirates Hills, reinforcing Dubai's appeal to global high-net-worth buyers.

Weighted average capital values citywide stood at Dh3.69 million, with villas averaging Dh14.38 million and apartments at Dh1.97 million. Villas commanded an average of Dh3,048 per sq ft, while apartments averaged Dh1,477 per sq ft.

Developer activity remained robust, led by Binghatti (19.5 per cent), Emaar (13.2 per cent), Damac (5.6 per cent), Danube (3.7 per cent), Azizi (2.5 per cent), and Nakheel (2.4 per cent), reflecting strong competition in both luxury and mid-market segments.

ValuStrat analysts attribute the sustained growth to Dubai's strategic positioning as a global hub, investor-friendly regulations, and a steady influx of international buyers seeking stability amid global economic uncertainty. With villas continuing to command premium valuations and off-plan sales dominating the market, the outlook for 2026 remains optimistic, albeit with expectations of more moderate price appreciation.

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