Analysts and market experts said the outlook for both segments remains positive, but villa prices are moving faster and are expected to break through January 2014 levels this year.
A magnificent view of the foliage of the Palm Jumeirah housing the villas with the Burj Al Arab in the background. Villas at the Palm Jumeirah remained the most preferred choice as their prices rose 5.3% and hit their 2014 highs in March. — File photo
The villa segment will continue to drive the Dubai property market and is expected to show modest growth in the last three quarters of 2022, while apartments in the apartment category are expected to perform better than last year, experts say.
Analysts and market experts said the outlook for both segments remains positive, but villa prices are moving faster and are expected to break through January 2014 levels this year.
Referring to the ValuStrat price index, which measures the performance of Dubai‘s residential capital value, they said property prices jumped 18.8% year-on-year and 1.2% year-on-year. monthly shift in March.
“Villas spearheaded this trend, with prices jumping 34.1% year-on-year, but saw a flat monthly growth rate of 2.1% last month. Apartments grew at a figure of 8.4% per year with a marginal monthly growth of 0.4% in March,” according to the ValuStrat report.
In the villa segment, Jumeirah Islands (40.3%), Arabian Ranches (40.3%), The Lakes (37.1%) and Jumeirah Village (35.5%) were the best performers. Some regions such as Mudon and Green Community West performed better and recorded above-average price growth of 0.5% and 0.8%, respectively.
“Villas at the Palm Jumeirah remained the most preferred choice as their prices rose 5.3% and reached their 2014 record highs in March,” according to the report.
The ValuStrat further stated that apartments at Palm Jumeirah (21.9%), Jumeirah Beach Residence (16%), Burj Khalifa Tower (15.3%), The Views (10.9%) and The Greens (9 .7%) obtained better results. than other regions and recorded rates above the market average of 8.4%.
Positive outlook
Haider Tuaima, Director and Head of Property Research at ValuStrat, said the outlook for the Dubai villa and apartment markets for the remainder of 2022 remains positive. He said villa growth rates are expected to level off while apartment prices are expected to improve in the single digits over the coming quarters.
“According to the ValuStrat price index, the villa capital value index reached 94.1 points last month, only 5.9 points below the January 2014 price index base. While the weighted average capital value of villas increased by 6.3% per quarter and 34.1 per year,” Tuaima told the Khaleej Times on Sunday.
He said the apartment capital value index reached 69.5 points in March, still 30.5 points below the January 2014 price index base.
“The weighted average capital value of apartments has increased by 1.4% per quarter and 8.4% per year,” he said.
Dubai in the top 3 destinations
Atif Rahman, Founder and Chairman of Oro24 Real Estate Development, said Dubai has done everything right over the past two difficult years. From crisis management to regulatory reform and infrastructure development, which have been better than the rest of the world, so it will continue to attract new investment, he said.
“The city is a top three destination in the world by any standard, while property prices are still far too low compared to the world, so it remains affordable on all scales. We must also remember that historically the positive impact of events like Expo intensifies after the event ends,” he said.
“The world has experienced the capacity of this great city through hosting Expo in the context of a pandemic and I continue to witness new, fresh and pristine global interest in the world. city real estate,” he said.
“The outlook is bright and totally in favor of Dubai, which offers a unique combination of safe investment, better returns, an unrivaled lifestyle and a bright future thanks to the government’s continued efforts,” he added.
The dominance of the villa will continue
Ata Shobeiry, chief executive of Zoom Property, said the latest ValuStrat price index shows the first quarter of 2022 ended on a high note, paving the way for a solid year in terms of market performance.
“Villas continue to show their dominance with monthly growth of 2.1%, while the apartment sector recorded marginal price growth of 0.4%. With new projects in the pipeline and the influx of foreign investors, the gap between villa and apartment price growth is expected to gradually narrow. Apartment prices are expected to increase as the market approaches 2014 peak prices,” Shobeiry told the Khaleej Times on Sunday.
Luxury, ultra-luxury segments
Ayman Youssef, vice president of Coldwell Banker, said
Within the villa category, the luxury and ultra-luxury segments experienced maximum price spikes. This was mainly due to the remote working situation caused by the pandemic which encouraged people to move to bigger and better properties with more amenities. “These properties are owned by wealthy residents as well as non-resident buyers. Additionally, the availability of properties is limited, especially in the ultra-luxury villa segment,” he said.
Youssef said the apartment segment was slow to recover, but the luxury apartment segment in prime locations performed exceptionally well, especially units facing the beach.
“We expect the villa segment market to experience moderate growth while the apartment category is expected to perform better than last year thanks to demand generated by an improved GDP forecast which is expected to exceed 6.2%, job opportunities and an increase in population,” he said.
Increase in home sales
The ValuStrat report further noted that the volume of home sales in Dubai increased by 26.1% in March compared to the previous month and by 146.6% compared to the same period last year. The month-on-month performance saw cash and mortgage sales of ready-made properties as well as off-plan Oqood (contract) registrations increase by 26%, the latter accounting for 43% of overall transactions .
High Value Transactions
The report also noted 15 high-value transactions worth more than 30 million dirhams last month, including a six-bedroom villa in Emirates Hills that sold for 75 million dirhams.
Leading the sales, properties developed by Emaar (24.3%), Damac (17.7%), Nakheel (6.9%), Select Group (4.1%) and Dubai Properties (3.2%) . The report said the top off-plan locations traded in March included projects in Business Bay (15.7%), Dubai Creek Harbor (9.2%) and Downtown Dubai (8.8%).
“Most ready-made homes were traded in Damac Lagoons (16%), Jumeirah Village (5.8%), Dubai Marina (5.6%) and Business Bay (5.3%). Dubai Hills Estate apartments and Jumeirah Islands villas have broken their individual records with the most homes sold in a month since 2010.
