Villas continue to lead Dubai property market

Average residential property prices in Dubai have increased by up to 5.4 percent so far in 2021 following further growth in May, according to new research.

Real estate consultants ValuStrat revealed that its index that monitors capital values across the emirate grew by 1.1 percent last month, aggregating four percent since the start of the year.

On a citywide level, capital values of residential homes have commenced a growth trend, albeit a gradual one.

All villa locations saw their capital values improved and most apartment locations stabilised. Seven out of ten villa locations monitored by the VPI saw annual improvements averaging between 1.1-5.4 percent.

While May sales transactions were lower than April, ValuStrat data shows that the second quarter has already surpassed the same quarter last year with still one month to go.

Residential sales volumes fell 13 percent over April. Off-plan and ready homes monthly sales declined 10.7 percent and 14.8 percent respectively, it said.

The report added that freehold locations monitored by the VPI saw capital values expand monthly by 1.1 percent on average as villas grew 2.2 percent and apartments marginally improved by 0.3 percent in May.

Growth in apartment capital values was observed in Palm Jumeirah, Business Bay, and Motor City with an average monthly increase of1.3 percent.

Dubai real estate prices registered their biggest growth rate in April for seven years, ValuStrat said last month.