Prices for apartments in Dubai increased along with those of villas and townhouses last month, according to real estate consultancy ValuStrat.
Apartments in Palm Jumeirah recorded the highest capital gains annually at 19.3 per cent, followed by The Greens at 14.7 per cent, Discovery Gardens at 14.1 per cent, Motor City at 13 per cent, and Jumeirah Beach Residence at 11.3 per cent, the research showed.
“Increased sales of apartments within affordable and mid-market communities were observed,” said Haider Tuaima, head of research at ValuStrat.
“August saw International City ranking fourth within locations with highest number of ready home sales. Arjan ranked third within the highest number of off-plan registrations, while Business Bay broke its individual record for the first time with the highest number of off-plan properties traded in one month.”
Dubai’s property boom is not going to slow down any time soon, according to real estate experts, as a rising population, minimal taxes and the global economic climate continue to drive optimism.
Dubai's property market has bounced back strongly from the coronavirus-induced slowdown, helped by government initiatives such as residency permits for the retired and remote workers.
The emirate's move to expand the 10-year golden visa programme, the economic gains generated by Expo 2020 Dubai and higher oil prices also supported property market growth momentum.
Dubai’s residential real estate prices rose 17 per cent in the second quarter on an annual basis, marking the 10th consecutive quarter of expansion, amid strong demand and robust economic growth, according to a report by consultancy Knight Frank last month.
Property prices in the April to June period rose 4.8 per cent from the previous quarter, the agency said.
Meanwhile, villa prices in Dubai increased 2.4 per cent when compared with July, and 18.2 per cent since last year, according to the ValuStrat report.
“This is far below the 33.9 per cent villa annual capital gains seen during February 2022,” Mr Tuaima said.
Villas in Jumeirah Islands recorded the highest capital gains annually at 24.2 per cent, followed by the Palm Jumeirah at 22.1 per cent, Dubai Hills Estate at 22 per cent, and Emirates Hills at 20.6 per cent, the report showed.
Jumeirah Park, Arabian Ranches and Jumeirah Islands surpassed their 2014 price peaks by up to 3.2 per cent.
Off-plan Oqood (contract) registrations rose 13 per cent monthly and 40.8 per cent annually, representing a three-year record share of 63.5 per cent of overall monthly sales, ValuStrat said.
However, ready homes transactions fell 14.6 per cent monthly and 26.2 per cent annually.
Apartment sales dominated last month, representing 95 per cent of all deals, 99 per cent of off-plan registrations and 88 per cent of ready home title deeds, the research showed.
Top off-plan locations transacted last month included projects in Business Bay, Jumeirah Village, Arjan, Sobha Hartland and Dubai Harbour.
The majority of ready homes sold in August were in Jumeirah Village, Dubai Marina, Business Bay, International City and Downtown Dubai, ValuStrat said.
Properties developed by Emaar (10.9 per cent), Damac (10.5 per cent), Sobha (8.7 per cent), Danube (5.6 per cent) and Nakheel (5 per cent) topped the sales charts.
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Separately, global real estate consultancy CBRE said in a recent report that total volume of transactions in Dubai’s residential market stood at 11,328 in August, the second-highest monthly figure registered yet and up by 22 per cent compared with the previous year.
In the year to date to August, a total of 79,605 transactions were registered, the highest on record over this period, the consultancy added.
In the 12 months to August, average prices rose by 19.6 per cent. Over this period, average apartment prices rose by 20 per cent and average villa prices rose by 17.3 per cent.
Average apartment sales rates sit 9.6 per cent below their 2014 comparable peak, while average villa sales rates are at 8.7 per cent above their 2014 level, according to CBRE’s findings.
In the apartment segment, Downtown Dubai registered the highest sales rate per square foot at Dh2,460, whereas in villas, Palm Jumeirah reported the highest sales rate per square foot at Dh4,915.
“In the rental market, we continue to witness a slight moderation in the rate of growth,” Taimur Khan, head of research for Middle East and North Africa at CBRE in Dubai, said.
“Average rents in Dubai rose by 21.7 per cent in the year to August. Over this period, average apartment rents increased by 21.5 per cent, and average villa rents rose by 22.6 per cent.”