Dubai October 19 2021: The third quarter 2021 ValuStrat Price Index for Dubai’s residential capital values saw gains of 5.1% quarterly and 9.8% annually as per report published by ValuStrat.
2021 is looking likely to be the best year in a decade in terms of residential investments, YTD September transactional volumes already exceeded all annual totals since 2010. Overall citywide residential asking rents grew 6.9% YoY, a record increase not seen since early 2015.
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Dubai Office capital values increased 3.9% quarterly, 8.8% annually. All five office
locations monitored by the index witnessed positive annual capital gains. Office sales transaction volumes during Q3 2021 were 27.6% lower when compared to the previous quarter but up 65.8% compared to last year, this is not surprising given last year’s pandemic challenges.
The third quarter 2021 ValuStrat Price Index
for Dubai’s residential capital values saw gains of 5.1% quarterly and 9.8% annually to reach 72.5 points. This is compared to 100 points in January 2014.
The villa submarket, which is a small portion of the overall market, lead this recovery trend with 8.9% QoQ and 21.3% YoY. In contrast, apartments improved in single digits, 2.4% QoQ and 2.4% YoY.
The highest villa annual capital gains were seen in Arabian Ranches at 26.8%, Jumeirah Islands with 26.4%, and The Lakes at 23.6%.
The best performing apartment locations in
terms of capital gains were Palm Jumeirah with 11.2%, and Jumeirah Beach Residence at 9.4%.
The Dubai VPI for residential rental values stood at 63 points, up 3.6% quarterly 6.9% annually. Villas and townhouses influenced this expansion up 14.1% YoY. Apartments trailed with single digit improvements of 2.6% YoY. Dubai’s citywide residential net yields
averaged 6.1%, apartments with 6.4%, villas at 4%.
The citywide VPI covering Dubai Office capital values increased 3.9% quarterly, 8.8% annually, to reach 65.5 points. All five office locations monitored by the index witnessed positive annual capital gains. Double digit improvements seen in DIFC (15.4%) and Jumeirah Lake Towers (12.5%). On office type and quality level, shell & core grade A space saw the highest annual growth of 23.1% followed by grade A fitted offices with 10.2%.