According to ValuStrat’s latest Price Index report, villas have emerged as the strongest performers in Dubai, recording a 2 per cent price increase in May alone and an impressive 29 per cent year-on-year growth.
Luxury areas are seeing the most dramatic appreciation, with Jumeirah Islands villas up 41 per cent, Palm Jumeirah villas rising 40 per cent, and both Emirates Hills and The Meadows showing 27 per cent annual gains.
The report highlights that Dubai’s freehold villas are now valued 66 per cent above their 2014 market peak and a staggering 175 per cent higher than post-pandemic levels.
This growth is largely due to the increasing number of high net worth individuals choosing to live in Dubai.
Apartment prices are also showing solid appreciation, though at a more moderate pace than villas.
The apartment segment recorded a 1.1 per cent month-on-month increase and a 20 per cent annual growth rate.
The Greens led apartment price gains with a 24 per cent yearly increase, followed closely by Dubai Silicon Oasis, Dubailand Residence Complex, and Palm Jumeirah, all at approximately 23 per cent.
Not all areas are experiencing equal growth, however. International City recorded the lowest capital value increase at 11 per cent, while Business Bay saw a 16 per cent rise.
Despite these variations, apartment valuations across Dubai are now averaging 73 per cent higher than post-pandemic levels.
ValuStrat’s analysis suggests further growth on the horizon, with property prices potentially increasing by another 10 per cent before the end of 2025.
The report indicates that growth rates will likely moderate from current highs as the market matures and approaches a more balanced supply-demand dynamic.
