Palm Jumeirah Apartments Hit Record Highs
In May, Dubai’s real estate market showed strong performance, with home prices rising significantly. According to ValuStrat, a real estate company, the ValuStrat Price Index (VPI) increased by 2.1 percent to 174.4 points, marking a 27.2 percent rise from May last year.
Villas saw the largest monthly increase of 2.4 percent, reaching 221.2 points on the index, a 32.5 percent annual increase. Apartments, while slightly slower with a 1.8 percent monthly increase, outperformed the year by 22.4 percent, reaching 144 points.
Analysts view these figures as a sign of Dubai’s ongoing recovery from the pandemic’s effects. Despite short-term concerns due to heavy rains in April, strong demand has helped maintain prices.
Several villa communities have even surpassed their pre-Covid peak prices from 2014. Palm Jumeirah has become the first apartment community to do so.
Top-performing apartment communities in terms of capital gains include Discovery Gardens, with a 34% growth, followed by The Greens and Palm Jumeirah with 32.6 percent and 30.9 percent, respectively. Villa areas such as Palm Jumeirah, Jumeirah Islands, and Dubai Hills Estate have seen annual increases of 35-40 percent.
The market has also seen strong investor interest in prime-end sales exceeding AED30 million, with sixteen ready homes sold in desirable locations such as Palm Jumeirah, Dubai Marina, and District One.
In May, ready home transactions increased by 8.1 percent year-on-year, reaching 4,619 units. Off-plan contract signings or good registrations increased even more dramatically, up 76.3 percent year-on-year to a monthly record high of over 10,000 units, accounting for 69.4 percent of residential deals.
Leading developers such as Emaar, Azizi, and Sobha dominated transactions, with off-plan sales hotspots including Jumeirah Village Circle, Ras Al Khor, and Dubai Hills Estate developments, while ready homes are primarily traded in Jumeirah Village Circle, Business Bay, and Dubai Marina.