ValuStrat have reported that the Dubai real estate market is changing direction towards affordable property, with two in five sales worth less than $272,000.
The report identifies trends in Dubai’s real estate sector, with most villa prices doubling since 2020 and mid-market properties becoming popular.
The ValuStrat Price Index (VPI) showed a 28.9% annual increase in residential values. Freehold villa communities surpassed ten year price peaks, with 98% of villas doubling in value since 2020.
Ready villa and townhouse prices saw a 33.1% annual rise, while apartment values grew by 24.8% in Q3 2024, up from 23.4% in the previous quarter. Apartment rentals increased by 15.4% over the past year, significantly outpacing the 4.9% rise in villa rents.
ValuStrat, using Dubai Land Department figures, found the average size of a home sold this year was 1,450 sq ft, down from 2,087 sq ft in 2021.
In contrast, the average price was Dh1,490 per sq ft – up from Dh889 in 2012 and the highest on record.
With the UAE’s plan to be net zero by 2050 and rising land costs, developers are under pressure to build smaller, more energy-efficient units, with lower utility costs.
Dubai’s property market set new records in Q3 2024, with villas outperforming apartments and significant growth across the office, hospitality and warehouse sectors.
Haider Tuaima, Director and Head of Real Estate Research, ValuStrat
ValuStrat is an international consulting group providing advisory, valuations, research, transaction advisory, due diligence and industrial consulting services, working across various industry sectors.
