How some Dubai villa prices are back on the rise after years of decline
Villa prices in some parts of Dubai showed signs of recovery, coupled with record registered home sales transactions in November, according to new research.
Arabian Ranches, The Lakes, Palm Jumeirah, and Jumeirah Islands were among the communities that registered small increases in prices last month.
Real estate consultants ValuStrat said the overall Dubai property market displayed monthly stability, with an average fall in values of just 0.2 percent compared to October, the lowest rate of decline in three years.
Annually, the valuation-based index is 13.8 percent lower than last year, ValuStrat said, adding that on a citywide level, capital values of residential homes are yet to stabilise, as the broader downward trend continued, albeit, at a much slower pace. However, this month saw positive exceptions in some established villa developments. November registered a 14.4 percent monthly gain in transactions of cash-based sales, as existing ready homes saw an increase of 22.3 percent.
Off-plan sales also grew, but at a lower monthly rate of 9.4 percent, ValuStrat said.
It added that, annually, transactions for off-plan homes dropped 51.5 percent, but ready homes improved 18.1 percent.
Some locations monitored by the VPI saw capital values decline by 0.9 percent monthly, examples of which were apartments in Dubai Sports City, Jumeirah Beach Residence and The Greens.
However, given the high demand due to record low prices per square foot, villas demonstrated higher resilience when compared to apartments.
Most villa freehold locations saw prices stabilise this month, and, in some areas, registered minor increases in capital values. Examples included Arabian Ranches, The Lakes, Palm Jumeirah, and Jumeirah Islands.
ValuStrat's research also showed that 59 percent of November cash-based sales transactions volume was towards ready homes, as off-plan sales have slowed due to limited project launches.
Properties developed by Emaar, Nakheel, Damac, Nshama and MAF topped the sales charts overall.
Top off-plan locations transacted during November were in Jumeirah Village, Tilal Al Ghaf, Business Bay and Downtown Dubai.
Most transacted ready homes were located in Dubai Marina, Jumeirah Village, Business Bay, Palm Jumeirah and Town Square.