April 2021 residential capital values in Dubai spike 1.2%
Dubai residential capital values stood at 67.3 points in April 2021, with the number having spiked by 1.5% monthly, according to ValuStrat’s Price Index (VPI) report.
The report further revealed that the points were the index's highest monthly growth rate in seven years. On a citywide level, capital values of residential homes recorded a growth trend, which showed a positive sign that the property market has indeed bottomed out.
ValuStrat said that clear improvements in capital values were observed in 96% of locations monitored by the VPI. While annually, the valuation-based index was 6.5% lower than the previous year.
The report found that April continued the ongoing growth trend, and residential sales volumes rose 16.9% over March. Off-plan and ready homes monthly sales increased 30.1% and 8.7% respectively.
Freehold locations monitored by the VPI saw capital values expand monthly by 1.1% on average for both villas and apartments. Improvements in apartment capital values were recorded in Jumeirah Beach Residence, Palm Jumeirah, and Jumeirah Lake Towers with an average monthly growth of 1.5%.
Meanwhile, villa freehold locations registered monthly increases that averaged a higher rate of 2.1%. A record 3% monthly gain was seen in Jumeirah Islands.
Furthermore, sales of existing ready-to-move-in homes in April 2021 exceeded the whole second quarter of 2020, a time when lockdown measures were put in place due to the COVID-19 pandemic.
Additionally, 42.8% of homes transactions were off-plan. Villas in Dubai Hills Estate and Palm Jumeirah registered their highest ever individual monthly sales volumes.
Properties developed by Emaar Properties, Nakheel, DAMAC Properties, Dubai Properties, MAG Property Development, topped the sales charts overall. Top off-plan locations transacted during April were in Dubai Harbour, Mohammed Bin Rashid City – District Seven, Jumeirah Lake Towers, Jumeirah Village, and Arjan.
However, most transacted ready homes were located in Dubai Marina, Jumeirah Village, Dubai Sports City, Palm Jumeirah, and Town Square.