DUBAI VILLAS AND APARTMENTS RECORD STRONG CAPITAL GAINS IN FIRST QUARTER
DUBAI VILLAS AND APARTMENTS RECORD STRONG CAPITAL GAINS IN FIRST QUARTER
Dubai's property market showed strong growth in Q1 2023, with villas up 17.1% annually and apartments up 6.6%, according to ValuStrat. The best-performing areas were Jumeirah Islands, Palm Jumeirah, Dubai Hills Estate, and Jumeirah Park. The ValuStrat Price Index for Dubai's residential market increased by 11.4% annually to 88 points, with the villa VPI up 2.4% quarterly, and the apartment VPI up only 1.5%.
In Q1 2023, property sales in Dubai and Abu Dhabi surged, reflecting the broader recovery in the UAE's economy, driven by higher oil prices and new government initiatives. Dubai's Q1 property sales increased 80% YoY to Dh157 billion, while Abu Dhabi's total sales transaction value for the same period jumped more than three times to Dh11.6 billion ($3.15 billion), compared to last year, according to Property Finder.
ValuStrat reported that prime villa prices in Dubai increased by 1.2% in Q1 2023, surpassing the 2014 peak prices. The luxury villa valuation-based price index grew 16.8% annually and 3.2% quarterly. Prime apartments recorded capital gains of 10.2% annually and 1.7% quarterly.
As per ValuStrat's report, 55,863 new-build units have been put on the market so far this year, with the estimated completions by Q1 2023 standing at 6,564 for apartments and 1,178 for villas. 48,209 apartments remain under construction based on developer schedules for 2023 handovers. Additionally, 81% of the city's coming 7,654 villas will be concentrated in MBR City, Dubailand, and Dubai South.
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