Dubai Property Values Rise 27.5% in One Year

Dubai’s residential property market experienced remarkable growth in 2024, with capital gains averaging 27.5% year-on-year. This performance significantly exceeded initial forecasts, according to a study released on Monday.

December 2024: Key Metrics from the ValuStrat Price Index

The ValuStrat Price Index (VPI) closed December at 200.7 points, marking a 1.7% month-on-month increase. While this reflects a slight deceleration from November’s 1.8% growth, the VPI has doubled compared to its level during the pandemic. This growth highlights Dubai's resilience and the continued attractiveness of its property market.

Villa values surged to 259 points, while apartments reached 162.8 points. Both metrics are benchmarked to a base of 100 points set in January 2021. However, growth rates have softened for the fourth consecutive month since August 2024.

The VPI evaluates a sample of properties representing over 90% of Dubai’s residential and commercial markets, offering a comprehensive view of market trends.

Villas vs. Apartments: A Breakdown of Performance

Villas

Villa capital gains outpaced apartments, with a monthly increase of 2.1% and a staggering 31.6% annual growth. Top-performing villa communities included:

• Jumeirah Islands: 42.5%

• Palm Jumeirah: 42.3%

• Emirates Hills: 32.3%

• Dubai Hills Estate: 32.1%

In contrast, Mudon recorded the lowest annual gain at 13.5%, remaining stable for the fourth straight month.

Apartments

Apartment prices rose by 1.4% month-on-month, achieving a 23.6% annual growth. Communities with the highest yearly gains included:

• The Greens: 31%

• Palm Jumeirah: 28.3%

• The Views: 27.1%

• Town Square and Discovery Gardens: 26.4% each

Lower gains were observed in International City (16.9%) and Dubai Sports City (18.1%).

Off-Plan vs. Ready Homes

The off-plan market experienced a boom in December:

• Oqood registrations for off-plan homes surged by 26.3% month-on-month and a staggering 513.8% year-on-year.

• Off-plan homes accounted for 71.1% of all sales in December.

Meanwhile, ready secondary home transactions declined by 8.7% month-on-month and 3.4% year-on-year.

Prime Properties in High Demand

December recorded 29 transactions for ready properties priced above AED 30 million. These luxury homes were concentrated in areas like:

• Blue Waters Island

• Palm Jumeirah

• Emirates Hills

• Jumeirah Bay Island

• Downtown Dubai

• Business Bay

• District One

Top Developers and Hot Locations

Leading Developers:

• Emaar: 12.8% of total sales

• Damac: 8.1%

• Binghatti: 7.6%

• Azizi: 5.9%

• Sobha: 4.6%

Popular Off-Plan Locations:

• Jumeirah Village Circle: 13.1%

• Business Bay: 10.2%

• Dubailand Residence Complex: 5.7%

Most Sold Ready Homes:

• Jumeirah Village Circle: 9.1%

• Dubai Marina: 6.6%

• Business Bay: 6.1%

• Downtown Dubai: 4.8%

• Jumeirah Lake Towers: 2.9%

Notably, Business Bay and Dubailand Residence Complex achieved record-breaking off-plan transactions in December.

2024: A Record Year for Residential Transactions

Dubai witnessed over 168,000 residential transactions in 2024 across freehold markets, according to Emirates NBD data. A total of 114,480 units under construction were sold, marking a shift in market dynamics. The share of off-plan sales increased from 54% in 2023 to 68% in 2024.

In response to the surging demand, developers launched a record 142,000 units in 2024, further solidifying Dubai’s position as a global real estate hub.