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Dubai apartment costs rise highest in a decade

The best apartment performance was recorded in Discovery Gardens

Dubai apartment prices rose 15.4 per cent in 2023, the highest annual capital growth for apartments witnessed in a decade, a report showed on Tuesday.

The ValuStrat Price Index (VPI) for December reached 103.1 points, up 19.9 per cent annually, with a slower monthly increase of 2 per cent. This is compared to 100 points set in January 2014 and 112.9 points at the peak during the same year. Apartments were at 84.3 points, and villas at 133.1 points.

The residential market witnessed a slowing in overall price gains in December, the report showed. Capital values of Dubai’s apartments and villas increased at lower monthly rates during the final month of 2023. Secondary ready-home deals dominated transactions, as off-plan sales fell sharply in December.

The best apartment performance compared to the same period last year was recorded in Discovery Gardens (26.4 per cent), mainly driven by Route 2020 Metro extension. This is followed by Palm Jumeirah (25.4 per cent), The Greens (24.3 per cent), Motor City (20.7 per cent), and Town Square (19.5 per cent). Villa prices increased 2.3 per cent when compared with November, and 24.9 per cent since last year. The top annual performers were villas in highly desired Jumeirah Islands (32.2 per cent), Palm Jumeirah (31.9 per cent), Dubai Hills Estate (30.6 per cent), and Mudon (27.2 per cent).

Off-plan Oqood (contract) registrations fell sharply by 63.7 per cent monthly and 70.3 per cent annually, representing a minority share of 28.2 per cent of overall monthly residential unit sales. Ready homes transaction volume dipped 1.7 per cent monthly but was still 37.5 per cent higher than the previous year. December 2023 saw 15 transactions of ready properties priced over Dh30 million, located in Palm Jumeirah, District One, Jumeirah Bay, Emirates Hills, and Dubai Hills Estate.

Topping the sales charts overall this month were properties developed by Emaar (17.3 per cent), Damac (8.9 per cent), Falcon City of Wonders (6 per cent), and Nakheel (5.9 per cent). Top off-plan locations transacted this month included projects located in Dubai Maritime City (7.5 per cent), Business Bay (7 per cent), Jumeirah Village Circle (6.4 per cent), and Dubai Harbour (5.2 per cent). While the majority of ready homes sold were in Jumeirah Village Circle (8.9 per cent), Falcon City of Wonders (8.2 per cent), Business Bay (7.9 per cent), and Dubai Hills Estate (5.8 per cent).