Property prices continue to rise in Dubai, albeit more slowly. Photo: Luxhabitat Sotheby's International Realty
Property prices continue to rise in Dubai, albeit more slowly. Photo: Luxhabitat Sotheby's International Realty
Property prices continue to rise in Dubai, albeit more slowly. Photo: Luxhabitat Sotheby's International Realty
Property prices continue to rise in Dubai, albeit more slowly. Photo: Luxhabitat Sotheby's International Realty

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Property

Dubai property price growth eases in August, report says

The significant price rises recorded earlier in the year are slowing against a backdrop of rising interest rates and new supply

Ian Oxborrow
Ian Oxborrow

September 08, 2022

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Dubai property prices experienced their slowest monthly growth rate in 18 months in August, according to a report by property consultancy ValuStrat.

“The villa submarket continued to perform, albeit at a slower 1.3 per cent month-on-month expansion,” its August report said.

Apartments, which represent the majority of Dubai's residential market, “gradually approached possible price ceilings with a modest 0.7 per cent monthly rise”, it said.

The residential ValuStrat Price Index (VPI) rose 1 per cent monthly to 83.1 points last month. The 100 base points were set in January 2014.

The VPI for the villa segment was up more than 28 per cent annually to 101.9, while the apartment VPI stood at 71.4 points, an increase of about 8 per cent year on year.

Dubai property prices, particularly in prime areas, have increased over the past 12 months on the back of the wider economic recovery in the UAE from the coronavirus-induced slowdown.

The city has reported an influx of high-net-worth individuals and its market has also been buoyed by the success of the UAE's golden visa programme.

In July, Dubai also recorded the highest number of sales transactions in the past 12 years, according to Property Finder.

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Dubai property prices: where they rose and fell — July 2022

APARTMENT PRICES: Jumeirah: Dh2,082 per square foot — up 0.1 per cent in July, up 1.8 per cent in June, up 3.6 per cent in May, up 3.5 per cent in April. The National
APARTMENT PRICES: Jumeirah: Dh2,082 per square foot — up 0.1 per cent in July, up 1.8 per cent in June, up 3.6 per cent in May, up 3.5 per cent in April. The National
Downtown Dubai: Dh2,071 - up 1 per cent in July, up 0.3 per cent in June, up 0.5 per cent in May, up 0.7 per cent in April. Reuters
Downtown Dubai: Dh2,071 - up 1 per cent in July, up 0.3 per cent in June, up 0.5 per cent in May, up 0.7 per cent in April. Reuters
The Palm Jumeirah: Dh1,943 per square foot — up 1.5 per cent in July, down 4.2 per cent in June, up 4.2 per cent in May, up 4 per cent in April. Antonie Robertson / The National
The Palm Jumeirah: Dh1,943 per square foot — up 1.5 per cent in July, down 4.2 per cent in June, up 4.2 per cent in May, up 4 per cent in April. Antonie Robertson / The National
DIFC: Dh1,684 per square foot — up 0.3 per cent in July, down 0.5 per cent in June, up 2.5 per cent in May, up 1.2 per cent in April. Jeff Topping / The National
DIFC: Dh1,684 per square foot — up 0.3 per cent in July, down 0.5 per cent in June, up 2.5 per cent in May, up 1.2 per cent in April. Jeff Topping / The National
Mohammed bin Rashid City: Dh1,551 per square foot — up 1.3 per cent in July, up 1.9 per cent in June, up 2.3 per cent in May, down 0.2 per cent in April. Satish Kumar / The National
Mohammed bin Rashid City: Dh1,551 per square foot — up 1.3 per cent in July, up 1.9 per cent in June, up 2.3 per cent in May, down 0.2 per cent in April. Satish Kumar / The National
Dubai Hills: Dh1,537 per square foot — up 1.7 per cent in July, up 1.6 per cent, up 2.7 per cent in May, up 0.3 per cent in April. Photo: Emaar Malls Management
Dubai Hills: Dh1,537 per square foot — up 1.7 per cent in July, up 1.6 per cent, up 2.7 per cent in May, up 0.3 per cent in April. Photo: Emaar Malls Management
Business Bay: Dh1,469 per square foot — down 1.4 per cent in July, down 2.2 per cent in June, up 1.3 per cent in May, up 1.7 per cent in April. Sarah Dea / The National
Business Bay: Dh1,469 per square foot — down 1.4 per cent in July, down 2.2 per cent in June, up 1.3 per cent in May, up 1.7 per cent in April. Sarah Dea / The National
Jumeirah Beach Residence: Dh1,400 per square foot — down 0.8 per cent in July, down 2.8 per cent in June, down 1.0 per cent in May, down 2.2 per cent in April. Photo: LuxuryProperty.com
Jumeirah Beach Residence: Dh1,400 per square foot — down 0.8 per cent in July, down 2.8 per cent in June, down 1.0 per cent in May, down 2.2 per cent in April. Photo: LuxuryProperty.com
Dubai Marina: Dh1,418 per square foot — up 2.3 per cent in July, up 1.8 per cent in June, down 0.3 per cent in May, down 0.7 per cent in April. Victor Besa / The National
Dubai Marina: Dh1,418 per square foot — up 2.3 per cent in July, up 1.8 per cent in June, down 0.3 per cent in May, down 0.7 per cent in April. Victor Besa / The National
The Greens and The Views: Dh1,107 per square foot — up 2.4 per cent in July, up 1.2 per cent in June, down 2.5 per cent in May, down 0.6 per cent in April. Sarah Dea / The National
The Greens and The Views: Dh1,107 per square foot — up 2.4 per cent in July, up 1.2 per cent in June, down 2.5 per cent in May, down 0.6 per cent in April. Sarah Dea / The National
Jumeirah Lakes Towers: Dh1,022 per square foot — up 1.7 per cent, down 0.9 per cent in June, up 3.1 per cent in May, down 1.1 per cent in April. Antonie Robertson / The National
Jumeirah Lakes Towers: Dh1,022 per square foot — up 1.7 per cent, down 0.9 per cent in June, up 3.1 per cent in May, down 1.1 per cent in April. Antonie Robertson / The National
Damac Hills: Dh1,023 per square foot — up 2.1 per cent, up 0.4 per cent in June, up 2.1 per cent in May, down 0.7 per cent in April. Pawan Singh / The National
Damac Hills: Dh1,023 per square foot — up 2.1 per cent, up 0.4 per cent in June, up 2.1 per cent in May, down 0.7 per cent in April. Pawan Singh / The National
Jumeirah Village Circle: Dh916 per square foot — up 0.5 per cent in July, up 1.2 per cent in June, up 0.4 per cent in May, up 0.1 per cent in April. Razan Alzayani / The National
Jumeirah Village Circle: Dh916 per square foot — up 0.5 per cent in July, up 1.2 per cent in June, up 0.4 per cent in May, up 0.1 per cent in April. Razan Alzayani / The National
Town Square: Dh853 per square foot — up 0.9 per cent in July, down 1.9 per cent in June, up 0.4 per cent in May, down 1.9 per cent in April.
Town Square: Dh853 per square foot — up 0.9 per cent in July, down 1.9 per cent in June, up 0.4 per cent in May, down 1.9 per cent in April.
Motor City: Dh641 per square foot — down 1.8 per cent in July, down 2.5 per cent in June, up 0.8 per cent in May, down 0.7 per cent in April.
Motor City: Dh641 per square foot — down 1.8 per cent in July, down 2.5 per cent in June, up 0.8 per cent in May, down 0.7 per cent in April.
Dubai Silicon Oasis: Dh612 per square foot — up 1.8 per cent in July, up 3.6 per cent in June, down 2.9 per cent in May, down 0.7 per cent in April. Chris Whiteoak / The National
Dubai Silicon Oasis: Dh612 per square foot — up 1.8 per cent in July, up 3.6 per cent in June, down 2.9 per cent in May, down 0.7 per cent in April. Chris Whiteoak / The National
Dubai Sports City: Dh609 per square foot — up 0.5 per cent, up 3.0 per cent in June, down 3.9 per cent in May, down 1.1 per cent in April. Reem Mohammed / The National
Dubai Sports City: Dh609 per square foot — up 0.5 per cent, up 3.0 per cent in June, down 3.9 per cent in May, down 1.1 per cent in April. Reem Mohammed / The National
Discovery Gardens: Dh511 per square foot — down 0.8 per cent in July, down 1.8 per cent in June, up 0.3 per cent in May, down 2.2 per cent in April. Pawan Singh / The National
Discovery Gardens: Dh511 per square foot — down 0.8 per cent in July, down 1.8 per cent in June, up 0.3 per cent in May, down 2.2 per cent in April. Pawan Singh / The National
International City: Dh450 per square foot — up 2 per cent in July, up 0.9 per cent in June, down 0.5 per cent in May, down 0.6 per cent in April. Antonie Robertson / The National
International City: Dh450 per square foot — up 2 per cent in July, up 0.9 per cent in June, down 0.5 per cent in May, down 0.6 per cent in April. Antonie Robertson / The National

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However, rising interest rates are expected to taper price growth in the latter part of the year.

“Demand for residential properties has reached an all-time high this year, but this trend could change due to the rising cost of living, increasing mortgage rates and anticipated new supply,” Haider Tuaima, director and head of real estate research at ValuStrat, told Reuters.

Average villa prices were up 28.1 per cent annually in August, ValuStrat said. The top performers were Arabian Ranches (33.3 per cent), Jumeirah Islands (31.9 per cent), Palm Jumeirah (29 per cent) and the Meadows (28.8 per cent).

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Meanwhile, apartments recorded a more moderate 7.9 per cent average annual increase, with the highest growth registered on The Palm Jumeirah (18.2 per cent), Burj Khalifa (16.7 per cent) and Jumeirah Beach Residences (13.7 per cent).

The volume of residential sales transactions also jumped 80.4 per cent annually and 40.8 per cent monthly in August, ValuStrat said.

A total of 25 transactions valued at more than Dh30 million ($8.16m) were recorded last month. One transaction involved a villa located in Jumeirah Bay Island, which sold for Dh115m, while the largest penthouse at Atlantis The Royal Residences on The Palm Jumeirah sold for Dh163m.

The top off-plan locations for transactions in August included projects located in Damac Lagoons (14.3 per cent), Business Bay (12.1 per cent), Jumeirah Village (10.4 per cent), Arjan (8.8 per cent) and Downtown Dubai (7.2 per cent).

Industry experts told The National last month that demand in the UAE’s mortgage market is being driven by “Fomo [fear of missing out] buyers”, as potential home owners rushed to the market amid rising prices.

What the law says

Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.

“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.

“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”

If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.

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Pre-school (three - five years)

You can’t yet talk about investing or borrowing, but introduce a “classic” money bank and start putting gifts and allowances away. When the child wants a specific toy, have them save for it and help them track their progress.

Early childhood (six - eight years)

Replace the money bank with three jars labelled ‘saving’, ‘spending’ and ‘sharing’. Have the child divide their allowance into the three jars each week and explain their choices in splitting their pocket money. A guide could be 25 per cent saving, 50 per cent spending, 25 per cent for charity and gift-giving.

Middle childhood (nine - 11 years)

Open a bank savings account and help your child establish a budget and set a savings goal. Introduce the notion of ‘paying yourself first’ by putting away savings as soon as your allowance is paid.

Young teens (12 - 14 years)

Change your child’s allowance from weekly to monthly and help them pinpoint long-range goals such as a trip, so they can start longer-term saving and find new ways to increase their saving.

Teenage (15 - 18 years)

Discuss mutual expectations about university costs and identify what they can help fund and set goals. Don’t pay for everything, so they can experience the pride of contributing.

Young adulthood (19 - 22 years)

Discuss post-graduation plans and future life goals, quantify expenses such as first apartment, work wardrobe, holidays and help them continue to save towards these goals.

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Updated: September 08, 2022, 11:55 AM`
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