Dubai’s apartment market showed further signs of cooling in July, with prices falling 4.2% year-on-year. Burj Khalifa recorded the sharpest decline among major apartment communities, according to the ValuStrat Price Index (VPI).
Apartment values fell 0.2% from June. The citywide weighted average capital value stood at AED 1,786,625, while the average value was AED 1,397 per square foot.
Burj Khalifa saw the biggest yearly fall in apartment prices in July, with values dropping 19%, followed by Jumeirah Beach Residence with a 15.1% decline, and Town Square recorded an 8.4% fall.
The decline was not seen across all Dubai communities. Dubai Silicon Oasis recorded the strongest yearly growth at 6%, and Dubai Sports City followed with a 5.4% rise. Al Quoz Fourth recorded a 5% increase; older freehold apartments were still 69% higher than their post-pandemic levels. However, prices were 8% below the market peak reached in 2014.
The overall Residential VPI stood at 219.2 points in July. The index fell 0.3% from June and was 1.6% lower than the same month last year. ValuStrat said the limited monthly fall suggests that the market is moving towards greater stability.
Dubai’s villa market also recorded a monthly decline in July. Villa prices fell 0.4% from June. None of the communities tracked by the index recorded a monthly increase. Yearly, villa prices showed no overall change.
Jumeirah Islands recorded the strongest annual growth among villa communities at 15%, and Emirates Hills followed with a 9.1% rise. The Meadows gained 7.1%, while The Villa increased 6.4%. Mira recorded a 4.7% rise.
Mudon saw the biggest annual decline among the villa communities, with prices falling 7.2%. Victory Heights recorded a 5.4% drop. Dubai Hills Estate followed with a 5.2% decline. The average villa value across Dubai stood at AED 12,989,628 in July. The average price was AED 2,039 per square foot.
Transaction figures show that buyers are showing more interest in ready homes. Ready-home transactions increased 11.4% from June to 3,546 deals. However, the number of deals was still 26.4% lower than the same period last year.
Off-plan registrations also declined in July. The number fell 1.1% from June and was 45.3% lower than a year earlier, with 9,475 transactions recorded. Despite the fall, off-plan properties still made up 72.8% of all residential sales in July.
Azizi led developer sales in July with a 28.4% share of transactions, Damac followed with 7.9%, while Emaar recorded a 7.8% share. Jumeirah Village Circle was the leading area for ready-home transactions, accounting for 14.4% of deals. Dubai Marina followed with a 6% share, while Business Bay accounted for 5.3% of ready-home transactions.
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