Villas and apartments in Dubai recorded strong annual capital gains in the first quarter of 2023 as the emirate’s property sector continues to rebound from the coronavirus pandemic.
Villas, which represent 13 per cent of residential homes in Dubai, grew by 17.1 per cent annually while apartment values rose by 6.6 per cent, according to a report from property consultancy ValuStrat.
Jumeirah Islands, with a growth of 5 per cent, The Palm Jumeirah (4.6 per cent), Dubai Hills Estate (4.5 per cent) and Jumeirah Park (3.8 per cent) were the best-performing areas during the quarter.
The ValuStrat Price Index (VPI) covering Dubai’s residential market grew by 11.4 per cent annually to 88 points.
The VPI for villas rose 2.4 per cent on a quarterly basis, 3 per cent shy of 2014 price peaks, the report said.
The apartment VPI grew by only 1.5 per cent quarterly, 34.2 per cent below the peaks of 2014.
The top districts with the highest quarterly capital gains for apartments were The Palm, Jumeirah Beach Residence, The Greens and Discovery Gardens.
“The month of March observed capital gains of typical villas stabilise, whilst apartments witnessed marginal acceleration for the first time since the pandemic,” ValuStrat said.
The latest report comes after Dubai and Abu Dhabi property sales surged in the first quarter amid a broader recovery in UAE’s economy on the back of higher oil prices and new initiatives by the government.
Abu Dhabi’s total sales transaction value for the three months to the end of March jumped more than three times to Dh11.6 billion ($3.15 billion), from Dh3.6 billion during the same period last year, according to real estate listings website Property Finder.
Meanwhile, Dubai’s total transaction value in the first quarter stood at Dh157 billion, marking an 80 per cent annual increase, the emirate's media office said last month.
Prime villa prices surpassed the price peaks of 2014 by 1.2 per cent in the first quarter, according to ValuStrat.
The valuation-based price index for luxury villas grew 16.8 per cent annually and 3.2 per cent on a quarterly basis.
Prime apartments recorded capital gains of 10.2 per cent annually and 1.7 per cent on a quarterly basis.
An estimated 55,863 new-build units have been put on the market so far this year while the number of total estimated completions by the end of the first quarter was 6,564 for apartments and 1,178 for villas, the ValuStrat report said.
Notable apartment completions included the Summer at Creek Beach development with 298 units, the Sunset at Creek Beach project (536), Waves Tower in Sobha Hartland (414), Binghatti Creek at Al Jaddaf development (400) and Azizi Berton in Al Furjan (245).
Based on developer schedules for 2023 handovers, preliminary estimates suggest 48,209 apartments remain under construction, with 54 per cent located in Mohammed bin Rashid (MBR) City, Dubailand, Jumeirah Village Circle and Business Bay.
An 81 per cent share of the city’s coming 7,654 villas will be concentrated in MBR City, Dubailand and Dubai South, the report said.
With higher borrowing costs, a shortage of good quality homes in some areas and attractive payment plans offered by developers, Dubai's off-plan sales volume jumped 103.5 per cent annually to 16,209 transactions worth more than Dh37 billion, representing 57.9 per cent of all residential homes sales, ValueStrat said.
The average ticket size of off-plan homes rose 22.2 per cent annually to Dh2.33 million. The citywide average transacted price for off-plan property was Dh17,783 a square metre (Dh1,652 a square foot).
The average ticket size of ready-to-move-in homes fell 5 per cent annually to Dh2.52 million during the quarter.
The sales volume of ready homes rose 13.9 per cent to 10,889 deals, equal to a total investment of Dh27 billion.
The citywide average transacted price for ready units during the first quarter was Dh14,170 a square metre (Dh1,316 a square foot).
Residential market strength also expanded to the affordable segment, according to ValuStrat.
"This quarter, Dubai Silicon Oasis, Jumeirah Village and Dubailand Residence Complex broke their individual records, with the highest number of homes traded during March, highlighting a possible shift in buyer demand towards the mid to affordable segment of Dubai’s real estate market, particularly homes priced under Dh1 million,” the report said.
Meanwhile, asking rents for new residential contracts in the first quarter jumped 33 per cent from the same period last year and 4.1 per cent from the previous quarter.
Villas led the rental increase, up 51.5 per cent annually and 4.2 per cent quarterly, to record an average asking rent of Dh380,500 a annum, the highest in 10 years, the report said.
Apartment asking rents grew by 20.7 per cent annually and 4 per cent quarterly.
THE SPECS
Engine: 3-litre V6
Transmission: eight-speed automatic
Power: 424hp
Torque: 580 Nm
Price: From Dh399,000
On sale: Now
MORE FROM CON COUGHLIN
Who has lived at The Bishops Avenue?
- George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
- Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
- Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
- Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills.
Hunting park to luxury living
- Land was originally the Bishop of London's hunting park, hence the name
- The road was laid out in the mid 19th Century, meandering through woodland and farmland
- Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds
The specs
Engine: 4-litre twin-turbo V8
Transmission: nine-speed
Power: 542bhp
Torque: 700Nm
Price: Dh848,000
On sale: now
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
What went into the film
25 visual effects (VFX) studios
2,150 VFX shots in a film with 2,500 shots
1,000 VFX artists
3,000 technicians
10 Concept artists, 25 3D designers
New sound technology, named 4D SRL
The biog
Hometown: Cairo
Age: 37
Favourite TV series: The Handmaid’s Tale, Black Mirror
Favourite anime series: Death Note, One Piece and Hellsing
Favourite book: Designing Brand Identity, Fifth Edition
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
Q&A with Dash Berlin
Welcome back. What was it like to return to RAK and to play for fans out here again?
It’s an amazing feeling to be back in the passionate UAE again. Seeing the fans having a great time that is what it’s all about.
You're currently touring the globe as part of your Legends of the Feels Tour. How important is it to you to include the Middle East in the schedule?
The tour is doing really well and is extensive and intensive at the same time travelling all over the globe. My Middle Eastern fans are very dear to me, it’s good to be back.
You mix tracks that people know and love, but you also have a visually impressive set too (graphics etc). Is that the secret recipe to Dash Berlin's live gigs?
People enjoying the combination of the music and visuals are the key factor in the success of the Legends Of The Feel tour 2018.
Have you had some time to explore Ras al Khaimah too? If so, what have you been up to?
Coming fresh out of Las Vegas where I continue my 7th annual year DJ residency at Marquee, I decided it was a perfect moment to catch some sun rays and enjoy the warm hospitality of Bab Al Bahr.
