Apartment Prices In a noteworthy development, Dubai experienced a remarkable 15.4% annual increase in apartment prices in 2023, marking the highest capital growth for apartments in the past decade. The ValuStrat Price Index (VPI) for December reached 103.1 points, indicating a substantial 19.9% annual uptick and a more moderate 2% monthly increase.
Residential Market Dynamics in December
While the overall residential market witnessed a deceleration in price gains in December, with varying rates of growth for apartments and villas, secondary ready-home transactions took the lead as off-plan sales sharply declined.
Apartment and Villa Performance
Apartments, measured at 84.3 points, and villas, at 133.1 points, showed distinct growth patterns. Notable performances in apartments were recorded in Discovery Gardens (26.4%), Palm Jumeirah (25.4%), The Greens (24.3%), Motor City (20.7%), and Town Square (19.5%). Meanwhile, villa prices increased by 2.3% compared to November, marking a substantial 24.9% surge since the previous year. Top annual performers in villas included sought-after areas like Jumeirah Islands (32.2%), Palm Jumeirah (31.9%), Dubai Hills Estate (30.6%), and Mudon (27.2%).
Transaction Trends and Market Shifts: Apartment PricesÂ
The report highlighted a significant decline in off-plan Oqood (contract) registrations, dropping by 63.7% monthly and 70.3% annually, making up only 28.2% of overall monthly residential unit sales. Despite a slight monthly dip of 1.7%, ready homes transactions remained 37.5% higher than the previous year. December 2023 saw 15 transactions of ready properties priced over Dh30 million.
Key Players and Locations: Apartment Prices
Emaar led property sales at 17.3%, followed by Damac (8.9%), Falcon City of Wonders (6%), and Nakheel (5.9%). Top off-plan locations included Dubai Maritime City (7.5%), Business Bay (7%), Jumeirah Village Circle (6.4%), and Dubai Harbour (5.2%). In terms of ready homes, the majority of sales were in Jumeirah Village Circle (8.9%), Falcon City of Wonders (8.2%), Business Bay (7.9%), and Dubai Hills Estate (5.8%).
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