Property prices rise fastest in April since 2014
Dubai real estate prices registered their biggest growth rate in April for seven years, according to new research by consultants ValuStrat.
Its VPI – Residential Capital Values for Dubai for April expanded 1.2 percent to 67.3 points, the index's best performance since 2014.
On a citywide level, capital values of residential homes commenced a growth trend, a promising signal that the property market has bottomed out, ValuStrat said.
It added that clear improvements in capital values were observed in 96 percent of locations monitored by the VPI.
Annually, the valuation-based index was 6.5 percent lower than the previous year, a notable improvement on recent double-digit annual declines.
ValuStrat noted that April continued the ongoing growth trend, with residential sales volumes rising 16.9 percent over the previous month.
Its research also indicated that off-plan and ready homes monthly sales increased by 30.1 percent and 8.7 percent respectively.
Freehold locations monitored by the VPI saw villa and apartment capital values expand monthly by 1.1 percent on average.
The report said improvements in apartment values were observed in Jumeirah Beach Residence, Palm Jumeirah, and Jumeirah Lake Towers with an average monthly growth of 1.5 percent.
Villa freehold locations registered monthly increases that averaged a higher rate of 2.1 percent in April while a record 3 percent monthly gain was seen in Jumeirah Islands.
Sales of existing ready-to-move-in homes in April exceeded the whole second quarter of 2020, a time when lockdown measures were put in place due to the Covid-19 pandemic, ValuStrat said.
Villas in Dubai Hills Estate and Palm Jumeirah registered their highest ever individual monthly sales volumes, it added.
According to the report, properties developed by Emaar, Nakheel, Damac, Dubai Properties, MAG Property Development topped the sales charts overall.
Top off-plan locations transacted during April were in Dubai Harbour, Mohammed Bin Rashid City – District Seven, Jumeirah Lake Towers, Jumeirah Village, and Arjan while most transacted ready homes were located in Dubai Marina, Jumeirah Village, Dubai Sports City, Palm Jumeirah, and Town Square.