According to a recent research, Dubai’s real estate continued to rise in February as investors and end-users looked for the finest purchase possibilities for residential properties on long-term lease.
The ValuStrat Price Index (VPI), which reached 78.1 points in February – 21.9 percent lower than the 100-point index base of January 2014 – saw a consistent price increase of just over 1% due to strong demand for residential properties in Dubai. It also highlighted a 2.1% increase in villa values and a 0.5% increase in apartment prices in the previous month.
According to Haider Tuaima, director and head of ValuStrat’s Real Estate Research, Dubai home sales for the first two months of 2022 have already topped the complete first quarter of 2021 in terms of both total volume and total value, indicating strong market demand.
Apartments are once again in demand
All apartment locations evaluated by the valuation-based index showed positive annual capital gains, according to the ValuStrat report, with the exception of Jumeirah Village, which had a 1% fall in value.
“The Palm Jumeirah (21.2%), as well as established areas such as Jumeirah Beach Residence (16.3%), Burj Khalifa (13.7%), The Views (11.2%), and The Greens (11.2%), had the best yearly apartment performance with double-digit growth” (10.3 per cent).
The demand for villas gets higher
According to the ValuStrat analysis, villa capital values increased at a consistent monthly rate, with some locations, such as Mudon (0.5%) and Green Community West (0.5%), seeing price stability (0.7 per cent).
“The best achievers on an annual basis were Jumeirah Islands (40.7%), Arabian Ranches (39.4%), The Lakes (36.7%), and Palm Jumeirah (34.4%),” according to the survey.
“Villas on the Palm Jumeirah increased by 3% in February 2022, to 123.8 VPI points, surpassing their 2014 highs. According to the research, “February residential sales transaction volumes surged 18.9% over the previous month and 105.4 percent over the same period last year.”
Cash and mortgage sales of ready residences increased 48.1 percent month over month, but off-plan Oqood (contract) registrations fell 5.8 percent, accounting for 42.9 percent of total home transactions.
“February witnessed 17 deals worth more than Dh30 million, with one off-plan 5-bedroom flat in Business Bay selling for Dh68.9 million,” according to the study. Emaar (19.1 percent), Damac (14.3 percent), Nakheel (11.3 percent), Azizi (6.7 percent), and Dubai Properties properties topped the overall sales statistics (4.9 per cent).
Off Plan Properties
According to the survey, the top off-plan locations sold this month were projects in Meydan One (14.8%), Business Bay (11.4%), Dubai Creek Harbour (7.2%), and Jumeirah Village (6.9%).
Damac Lagoons (10.5%), Al Furjan (9.3%), Jumeirah Village (8.5%), Business Bay (7.3%), and Dubai Marina (7.3%) had the most transacted ready residences (4.9 per cent). According to the ValuStrat analysis, Jumeirah Village and Al Furjan each set new marks for the most properties sold in a single month since 2010.
Source: Khaleej Times