Burj Khalifa, Jumeirah Beach Residence and Town Square recorded the steepest annual price declines among Dubai’s apartment communities in July, as the emirate’s residential property market showed further signs of cooling, according to the ValuStrat Price Index (VPI).
Burj Khalifa led the fall with prices down 19 per cent year-on-year, followed by Jumeirah Beach Residence, down 15.1 per cent, and Town Square, down 8.4 per cent.
Overall, apartment values eased 0.2 per cent month-on-month in July, leaving the segment 4.2 per cent below its level a year earlier. The citywide weighted average apartment capital value came in at Dh1,786,625, with a weighted average value of Dh1,397 per square foot.
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Not every community was in decline, however. Dubai Silicon Oasis gains ed1.3 per cent, and also led annual growth at 6 per cent, followed by Dubai Sports City, up 5.4 per cent, and Al Quoz Fourth, up 5 per cent.
Older freehold apartment prices remain 69 per cent above post-pandemic levels but still 8 per cent below the 2014 market peak, the report said.
Villas ease too
Villa capital values slipped 0.4 per cent month-on-month in July, with none of the communities tracked by the VPI recording monthly gains. Despite the monthly dip, annual growth across villas held broadly stable at 0.0 per cent.
The strongest annual gains were logged in Jumeirah Islands, up 15 per cent, Emirates Hills, up 9.1 per cent, The Meadows, up 7.1 per cent, The Villa, up 6.4 per cent, and Mira, up 4.7 per cent.
On the other end, Mudon posted the sharpest annual decline at 7.2 per cent, followed by Victory Heights, down 5.4 per cent, and Dubai Hills Estate, down 5.2 per cent.
Dubai’s older freehold villa communities remain, on average, 187 per cent above post-pandemic levels and 76 per cent above the 2014 market peak, the report said. The citywide weighted average villa capital value stood at Dh12,989,628, with a weighted average value of Dh2,039 per square foot.
The overall Residential VPI stood at 219.2 points in July, down 0.3 per cent from the previous month and 1.6 per cent lower year-on-year, against a January 2021 base of 100.
“Marginal monthly value declines suggest the market is moving toward stability,” ValuStrat noted in the report.
Off-plan sales
Sales transaction data showed a continued shift toward the ready homes segment. Ready-home transactions rose 11.4 per cent month-on-month, with 3,546 transactions recorded, though volumes remained 26.4 per cent lower on an annual basis.
Oqood registrations for off-plan properties fell 1.1 per cent month-on-month and were down 45.3 per cent year-on-year, with 9,475 transactions recorded. Off-plan sales still accounted for 72.8 per cent of all residential sales in July, against 27.2 per cent for ready homes.
Twenty-two ready-property transactions exceeded Dh30 million in July, including six deals priced above Dh50 million. These ultra-prime sales were concentrated in Palm Jumeirah, Dubai Hills Estate, Emirates Hills, Arabian Ranches, Jumeirah Golf Estates, Downtown Dubai, La Mer and DIFC.
Top developers and locations
Azizi led the developer sales charts in July with a 28.4 per cent share, followed by Damac, 7.9 per cent, Emaar, 7.8 per cent, Binghatti, 5.2 per cent, Ellington, 3.7 per cent, and Nakheel, 3.1 per cent.
Among off-plan locations, Azizi Venice topped transactions with a 21.2 per cent share, followed by City of Arabia, 7.6 per cent, Jebel Ali Industrial Second, 4.9 per cent, Dubailand Residence Complex, 4.7 per cent, Jebel Ali Downtown, 4.7 per cent, Jumeirah Village Circle, 4.3 per cent, and Jumeirah Islands, 2.8 per cent.
For ready homes, Jumeirah Village Circle led with a 14.4 per cent share of transactions, followed by Dubai Marina, 6 per cent, Business Bay, 5.3 per cent, Downtown Dubai, 3.9 per cent, and Dubai Hills Estate, 3.3 per cent.
Source: Khaleej Times