Dubai Career Diary

Dubai’s residential market maintained its strong performance in May, with capital values rising 27.2% compared to May 2023, according to the latest figures from ValuStrat. The ValuStrat Price Index (VPI) recorded an increase of 2.1% over the month to stand at 174.4 points.

Villas saw the largest monthly rise of 2.4%, with values surging 32.5% annually to reach 221.2 points on the index. Apartments grew at a slightly slower pace of 1.8% for the month but outperformed over the year at 22.4%, reaching 144 points.

Several villa communities regained or exceeded pre-Covid peak prices seen in 2014. Palm Jumeirah became the first apartment region to do likewise this month.

Top Performing Localities

Capital gains in top performing apartment localities rate from 21% to over 30% yearly. Discovery Gardens led with 34% growth, followed by The Greens and Palm Jumeirah at 32.6% and 30.9%, respectively. Al Quoz Fourth and The Views registered high returns near 29%.

Villa Areas with Astonishing Growth

Villa areas like Palm Jumeirah, Jumeirah Islands, and Dubai Hills Estate clocked astonishing yearly rises exceeding 35-40%.

Strong Investor Appetite

Strong investor appetite was also seen in prime end sales over AED30 million. Sixteen ready homes traded in sought-after locations comprising Palm Jumeirah, Dubai Marina, and District One.

Sales Volumes Paint an Upbeat Market Landscape

Sales volumes paint an upbeat market landscape. Ready home transactions grew 8.1% annually to reach 4,619 for May. Off-plan contract signings or good registrations jumped even more dramatically – up 76.3% year-on-year at a monthly record high over 10,000 units, representing 69.4% of residential deals.

Leading Developers Dominate Transactions

Leading developers dominated transactions. Emaar topped with 16.6% market share, followed by Azizi at 8.5% and Sobha at 8.2%.

Hotspots for Off-Plan Sales

Hotspots for off-plan sales centred on projects within Jumeirah Village Circle, Ras Al Khor, and Dubai Hills Estate. Ready homes are predominantly traded in Jumeirah Village Circle, Business Bay, and Dubai Marina.