Dubai Apartment Costs Increase Highest in a Decade

In 2023, there was an increase in apartment prices in Dubai by almost 15.4%, which is the highest annual capital growth seen for apartments in nearly a decade.

For the month of December, the ValuStrat Price Index (VPI) had climbed to 103.1 points, which is an annual increase of 19.9% and a slower monthly increase of about 2%.

In January 2014, it had stood at 100 points and had also reached its peak in the same year at 112.9 points. Apartments and villas were at 84.3 points and 133.1 points, respectively.

Overall price gains

According to the report, December had seen the residential market record a slowdown in overall price gains.

The apartments and villas in Dubai saw their capital values rise at lower monthly rates in the last month of 2023.

The transactions were mostly secondary ready-home deals, as there had been a sharp decline in off-plan sales in December.

In the same period last year, the best apartment performance had been recorded in Discovery Gardens by 26.4%, mostly due to the Route 2020 Metro extension.

Next came Palm Jumeriah, The Greens, Motor City and Town Square, which rose 25.4%, 24.3%, 20.7% and 19.5%, respectively.

The numbers

There was a 2.3% and 24.9% increase in villa prices when compared to November and when compared to the previous year.

Villas in highly desired locations had the top annual performers, which include Jumeirah Islands, Palm Jumeirah, Dubai Hills Estate and Mudon by 32.2%, 31.9%, 30.6% and 27.2%, respectively.

There was a sharp decline in off-plan Oqood registrations by 63.7% and 70.3%, monthly and annually. This is a minority share of the overall monthly residential unit sales of 28.2%.

There was also a 1.7% dip in ready home transaction volumes, but it was still higher than the year earlier by 37.5%.

A total of 15 transactions of ready properties were recorded in December 2023, which were priced over AED 30 million.

These were located in Dubai Hills Estate, Emirates Hills, Jumeirah Bay, District One and Palm Jumeirah.

The top names

The sales chart were topped by properties that were developed by Emaar, Damac, Falcon City of Wonders and Nakheel by 17.3%, 8.9%, 6% and 5.9%, respectively.

The top off-plan locations that recorded transactions include projects in Dubai Maritime City, Business Bay, Jumeirah Village Circle (JVC) and Dubai Harbour.

These were 7.5%, 7%, 6.4% and 5.2%, respectively. As far as ready homes are concerned, they were sold in Jumeirah Village Circle (JVC), Falcon City of Wonders, Business Bay and Dubai Hills Estate.

The numbers were 8.9%, 8.2%, 7.9% and 5.8%. While demand for property is growing in most of Dubai, the inventory is not enough to keep up with it.

Therefore, prices are expected to rise in the near future, even though developers are scrambling to keep up with the demand.

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