In the dynamic real estate market of Dubai, the value of highly sought-after villas has more than doubled in the past three years, outpacing the growth of apartment prices, according to recent data. The ValuStrat Price Index (VPI) for February registered at 164.1 points, marking a 23.1 percent annual increase, with villas reaching 206.1 points compared to apartments at 136.6 points. This surge in villa prices highlights the growing demand for luxury residential properties in Dubai.
The VPI, a valuation-based price index, is designed to reflect the periodic changes in capital and rental values of typical residential and commercial properties in Dubai. Updated monthly for residential capital values and quarterly for residential rental values, the VPI provides insights into the real estate market’s performance.
In the apartment submarket, prices accelerated by 1.9 percent monthly and expanded by a record 18.6 percent annually. The most significant annual growth in apartments was observed in Discovery Gardens, The Greens, Palm Jumeirah, Town Square, and Dubai Production City.
Meanwhile, villa capital gains saw a 2.4 percent monthly increase compared to January and a remarkable 28 percent growth since last year. The top annual performers in the villa segment were Jumeirah Islands, Palm Jumeirah, Dubai Hills Estate, and Mudon.
The month of February witnessed substantial activity in off-plan Oqood (contract) registrations, with a 32.6 percent annual increase and 5.7 percent monthly growth. Ready home transactions also grew notably, with a 30.5 percent annual rise and a 9 percent monthly increase, although they represented a smaller portion (36.9 percent) of the overall residential sales for the month.
High-value transactions were notable in February, with 20 deals of ready properties priced over Dh30 million. These properties were located in prime areas such as Emirates Hills, Palm Jumeirah, District One, Jumeirah Bay Island, and Dubai Hills Estate.
Top developers for the month included Emaar, Damac, Danube, and Sobha, with popular off-plan locations being Jumeirah Village Circle, Dubai Maritime City, Business Bay, and Bu Kadra. The majority of ready homes sold were in Jumeirah Village Circle, Business Bay, Dubai Marina, Downtown Dubai, and Dubai Hills Estate.
This data illustrates the robust growth in Dubai’s real estate market, particularly in the luxury villa segment, reflecting the city’s ongoing appeal as a hub for premium residential properties.
