Dubai Housing Market Witnesses Remarkable Price Surge in 10-Year High

25 Oct, 2023

Dubai Housing Market Witnesses Remarkable Price Surge in 10-Year High

Dubai's residential property market has witnessed a remarkable surge in prices, reaching its highest quarterly increase in a decade due to heightened demand, as reported by property consultancy ValuStrat.

In the third quarter, the ValuStrat Price Index (VPI) for Dubai's residential market rose by 6.1 percent on a quarterly basis, with villa and apartment prices surging by 7.6 percent and 4.8 percent, respectively.

On an annual basis, the VPI exhibited a significant rise of 15.1 percent, with villa and apartment prices soaring by 19.8 percent and 11 percent, respectively.Prominent areas in the villa segment that recorded substantial capital gains during the quarter include The Palm Jumeirah, Jumeirah Islands, Dubai Hills Estate, and Mudon. In the apartment category, Discovery Gardens, The Greens, The Palm, and Dubailand Residence Complex stood out as the top performers.

Furthermore, prime properties in Dubai also experienced capital gains during the third quarter. Prime property valuations saw an annual increase of 16.5 percent and a quarterly rise of 6.6 percent.

The VPI for prime villas reached a new high for the past decade, with capital gains of 20.2 percent year-on-year and 8.5 percent quarterly. Valuations of prime apartments increased by 13.6 percent annually and 5.2 percent on a quarterly basis.

Data from the Dubai government indicated that the emirate's economy expanded by 3.2 percent annually in the first half of 2023, reaching AED 223.8 billion (USD 60.9 billion). The growth was driven by the robust performance of the transport and storage sector.

The report also estimated that approximately 53,715 new build units would enter the market in 2023, based on developer completion schedules. During the first nine months of the year, there were a total of 21,507 completed apartments and 2,068 villas, equivalent to 44 percent of the preliminary estimates for the entire year.

In the third quarter, office sales transactions increased by 9 percent year-on-year, totaling 631 transactions, with a median transacted price of AED 11,140 per square meter, marking a 28.4 percent annual increase.