Property prices in cheaper areas of Dubai are on the rise

What has happened? The affordable housing market in Dubai recorded an upturn in the second quarter of 2023, for the first time since the start of the Covid-19 pandemic. This reflects the sector's significant annual capital gains, according to a report from real estate consultancy ValuStrat.

Price dynamics. The ValuStrat Price Index (VPI) covering Dubai’s residential market grew by 11.7 per cent annually and 3.4 per cent quarterly to 91 points, ValuStrat data shows.

Villa prices rose 15.8% year on year and 4.3% quarterly, while apartment prices rose 8.1% year on year and 2.6% quarter on quarter.

Districts. The affordable sector of the market saw an “evident growth for the first time since the pandemic” with prices up 4.5% at Discovery Gardens, 4.3% at Motor City, 3.9% at The Greens and 3.4% at Dubai Production City.

Meanwhile, Jumeirah Islands, with prices up 5.5%, Palm Jumeirah (+5.2%), Dubai Hills Estate (+5.1%) and Arabian Ranches (+4.6%), performed best during the quarter.

Luxury estates. Prices in the prime segment of the residential market rose by 13.1% annually and 3.9 % quarterly. The report says luxury villas are 8.8% more expensive than they were in mid-2014.

Source: The National

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