Dubai’s property market has hit another milestone with residential values rising 21.3% over the past year, driven by strong villa and apartment demand. The market shows resilience, with prices nearing historic peaks and attracting both local and international investors.
According to the latest ValuStrat Price Index (VPI), Dubai’s real estate sector continues to demonstrate remarkable growth, with villas and apartments experiencing significant price appreciation.
Villa Market Performance
Villa prices have surged an impressive 26.4% year-on-year, reaching a record 307.5 points. Top-performing areas include:
- Jumeirah Islands (+39%)
- Palm Jumeirah (+38.6%)
- Green Community West (+25.5%)
- The Meadows / Jumeirah Village Triangle (+24.7%)
The average villa now costs around Dh13.7 million, or Dh2,894 per square foot.
Apartment Market Trends
Apartment prices rose 16.1% over the year, approaching the 2014 market peak. Strongest performing areas include:
- Remraam (+22.2%)
- Dubai Silicon Oasis (+22.1%)
- The Greens (+21.8%)
- Dubailand Residence Complex (+21.5%)
The average apartment sells for Dh1.9 million, or Dh1,434 per square foot.
Market Drivers
Key factors fueling the market include:
- Off-plan sales dominating nearly 80% of transactions
- Flexible payment plans from developers like Binghatti, Damac, and Emaar
- Continuous population growth and business migration
Analysts predict price growth will moderate over the next 12 months but remain strong, reflecting Dubai’s robust real estate fundamentals.
