Dubai villa capital values gain 32.4% since last year

Capital values of Dubai villas have gained 32. 4 per cent since last year, gaining 2.2 per cent in October, data showed on Monday.

According to a ValuStrat report for the Dubai residential property market for October, villas in Jumeirah Islands are now three times more expensive than they were in 2021. Other top performing areas include Palm Jumeirah (42.5 per cent), Dubai Hills Estate (33.7 per cent), and Emirates Hills (33.1 per cent). The lowest gains were seen in Mudon (17.1 per cent) and Jumeirah Village Triangle, with Mudon remaining stable for the second consecutive month.

Apartment prices rose by 1.7 per cent monthly, with an annual growth of 24.3 per cent. Among the areas with the highest apartment capital gains compared to last year were The Greens (32.4 per cent), Discovery Gardens (30.9 per cent), Palm Jumeirah (29.9 per cent), and The Views (28.4 per cent). Least capital value gains were found in International City (16.8 per cent) and Dubai Sports City (17.5 per cent).

In October 2024, the ValuStrat Price Index rose by 1.9 per cent monthly to 193.8 points, a slight slowdown from September's 2.1 per cent growth. Annually, the index increased by 28.3 per cent. Villa values reached 248.5 points, while apartments recorded 158.1 points, both benchmarked to a base of 100 points from January 2021.

The ValuStrat Price Index or the VPI, is a valuation-based price index constructed to represent periodic change in capital values and rental values experienced by typical residential and commercial properties.

The Speed of capital growth slowed for the second consecutive month. “More apartment communities have reached previous price peaks,” the ValuStrat report said.