Home prices surge over 27% compared to May 2023, with Palm Jumeirah apartment rates hitting new record highs

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Dubai’s residential market continued its strong performance in May, with capital values increasing at a faster rate compared to the previous month, according to recent data from ValuStrat.

The ValuStrat Price Index (VPI) rose by 2.1 percent in May, reaching 174.4 points, reflecting a 27.2 percent growth compared to May of the previous year.

Villas experienced the most significant monthly increase at 2.4 percent, with an annual surge of 32.5 percent, bringing the index to 221.2 points. Apartments grew at a slightly slower monthly rate of 1.8 percent but saw an impressive annual growth of 22.4 percent, reaching 144 points on the index.

Dubai home prices continue sharp rise in May

Analysts highlight that these figures indicate Dubai’s continued recovery from the pandemic’s impact.

Despite concerns raised by heavy rainfall in April, demand remained strong, preventing the expected price drops.

Several villa communities have regained or surpassed their pre-Covid peak prices from 2014. This month, Palm Jumeirah became the first apartment region to achieve the same milestone.

Discovery Gardens tops Dubai apartment capital gains with 34% growth

Capital gains in the top-performing apartment areas ranged from 21 percent to over 30 percent annually, with Discovery Gardens leading at 34 percent growth.

The Greens and Palm Jumeirah followed with increases of 32.6 percent and 30.9 percent, respectively. Al Quoz Fourth and The Views also saw significant returns, close to 29 percent.

There was also strong investor interest in high-end sales over AED30 million, with sixteen ready homes sold in prime locations such as Palm Jumeirah, Dubai Marina, and District One.

Sales volumes reflect a positive market outlook. Ready home transactions increased by 8.1 percent annually, reaching 4,619 in May.

Off-plan contract signings saw an even more dramatic rise, up 76.3 percent year-on-year, hitting a monthly record of over 10,000 units, accounting for 69.4 percent of residential deals.

Top developers dominated the market, with Emaar leading at 16.6 percent market share, followed by Azizi at 8.5 percent and Sobha at 8.2 percent.

Off-plan sales hotspots included projects in Jumeirah Village Circle, Ras Al Khor, and Dubai Hills Estate, while ready homes were predominantly traded in Jumeirah Village Circle, Business Bay, and Dubai Marina.

Source: Arabian Business

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