Palm Jumeirah villas pass 2014 peak despite Dubai monthly price rises slowing

The pace of monthly price growth in the Dubai property market slowed down in January but Palm Jumeirah villas still achieved the milestone of surpassing 2014 peaks, according to new research.

Consultants ValuStrat said Dubai villa capital values increased 2 percent monthly and apartments saw marginal growth of just 0.4 percent.

The ValuStrat Price Index reached 77.1 points, up 1.1 percent since December and was 17.8 percent higher than the same period in 2021 but still lower than January 2014 by 22.9 percent.

January 2022 saw villas located in Palm Jumeirah become the first to surpass their price peaks of 2014 while Emirates Hills is likely to follow suit, being just 12 percent below the same peak eight years ago. January also saw 16 transactions valued over AED30 million, with one such transaction of a villa located in Palm Jumeirah selling for AED87 million.

Palm Jumeirah’s price rises influence Dubai’s overalll property averages.

All apartment locations monitored by the index saw positive annual gains except for Jumeirah Village Circle (-2.8 percent).

Best annual apartment performance registered in highly demanded Palm Jumeirah (20.9 percent), Jumeirah Beach Residence (17.1 percent), Burj Khalifa (12.1 percent) and Jumeirah Lake Towers (9.5 percent).

Villa capital values grew at a lower monthly rate, with some areas seeing price increases stagnate, ValuStrat noted.

The month-on-month performance saw cash and mortgage sales of ready properties decline 7.5 percent but off-plan Oqood (contract) registrations grew 7.6 percent, representing 54.2 percent of overall home transactions.