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.

The National's picks

4.35pm: Tilal Al Khalediah
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6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

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