6 In 10 Dubai Homes Hold Their Value As Market Cools Gently In August

(MENAFN- Khaleej Times) Dubai's residential property market showed broad stability in August, even as villa capital values recorded their first annual decline since 2021, according to the latest ValuStrat Price Index (VPI).

Villa values dipped 0.2 per cent month-on-month and 1.7 per cent year-on-year, marking the segment's first annual contraction in five years. Despite the softening, 73 per cent of freehold villa communities remained stable during the month.

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Apartment values also edged down 0.2 per cent month-on-month, leaving the segment 5.3 per cent lower than a year earlier. Sixty-one per cent of freehold apartment communities held steady.

The citywide VPI registered 218.8 points in August, a marginal 0.2 per cent monthly decline. However, capital values have fallen 10.2 per cent since February, contributing to a 3.1 per cent annual decline overall. Villa values eased to 292 points, while apartment values slipped to 168.3 points, against a Q1 2021 base of 100.

The weighted average capital value for residential property stood at Dh3.357 million, with a weighted average value per square foot of Dh1,513. For villas, the weighted average capital value was Dh12.969 million (Dh2,035 per square foot), while apartments averaged Dh1.782 million (Dh1,394 per square foot).

Villa performance

The strongest annual gains among villa communities were recorded in Jumeirah Islands (12.2 per cent), Emirates Hills (7.4 per cent), The Villa (5 per cent), The Meadows (4.8 per cent) and Mira (3.7 per cent).

On the other end, annual declines were sharpest in Mudon (-8.2 per cent), Dubai Hills Estate and Victory Heights (-6.8 per cent each), and Palm Jumeirah (-6.2 per cent).

Dubai's older freehold villa communities remain, on average, 187 per cent above post-pandemic levels and 75 per cent above the previous 2014 market peak.

Apartment performance

Among apartments, Dubai Silicon Oasis (4.3 per cent), Dubai Sports City (4.2 per cent) and Al Quoz Fourth (3.9 per cent) posted the strongest annual gains.

The steepest annual declines were recorded in Burj Khalifa (-20.4 per cent), Jumeirah Beach Residence (-16.9 per cent), Town Square (-9.7 per cent) and Palm Jumeirah (-8.6 per cent).

Older freehold apartment prices remain 68 per cent above post-pandemic levels but 9 per cent below the previous 2014 market peak.

Ready-home transactions declined 14.3 per cent month-on-month and were 20.6 per cent lower year-on-year, with 3,038 transactions recorded. Oqood registrations for off-plan properties fell 15.4 per cent month-on-month and 40.4 per cent year-on-year to 8,016 transactions, accounting for 73 per cent of all residential sales.

Fourteen ready-property transactions exceeded Dh30 million during the month, including 12 deals priced above Dh50 million. These ultra-prime sales were concentrated across Palm Jumeirah, Emirates Hills, District One, Jumeirah Bay Island, Al Barari and Dubai Marina.

Top developers, locations

Azizi led monthly developer sales with a 22.6 per cent share, followed by Emaar (10 per cent), Damac (7.6 per cent), Binghatti (5.6 per cent), Imtiaz (4.6 per cent) and Sobha (4.2 per cent).

Top off-plan locations included Azizi Venice (19.8 per cent), City of Arabia (10 per cent), Jebel Ali Downtown (7.7 per cent), Jumeirah Village Circle (4.7 per cent), Dubailand Residence Complex (4.1 per cent), Emaar South (3.7 per cent), Majan and Damac Lagoons (2.7 per cent each).

Ready home sales were concentrated in Jumeirah Village Circle (12.1 per cent), Business Bay (6.1 per cent), Dubai Marina (5.9 per cent), and Downtown Dubai and Dubai Hills Estate (3.8 per cent each).

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