Dubai’s residential capital values down 11% in Q1

Dubai’s residential capital values down 11% in Q1

The residential capital values in Dubai for the first three months of 2021 registered a 11 per cent drop compared to the previous year, standing at 61.9 points, according to leading UAE-based local consulting firm ValuStrat.The residential VPI showed an average quarterly improvement of 0.8%, as the first three months of the year saw accelerated positive trends for the first time since 2014, stated ValuStrat in its first quarter 2021 Dubai real estate review.On an annual basis, all locations witnessed price drops, some in single digits. Best performing freehold areas were International City, Arabian Ranches, The Meadows, The Lakes and Palm Jumeirah. Citywide, residential capital values were 10.9% lower than the same period last year.According to ValuStrat, the Q1 review reported the highest recorded number of home and office units' sales transactions, this was at a time when the office ValuStrat Price Index (VPI) has stabilised and the residential VPI saw quarterly improvements for the first time since 2014.The ValuStrat Price Index (VPI) is a valuation-based index that tracks change in capital values for a representative fixed basket of properties. "A positive trend which commenced H2 of 2019, only cut short by the Covid-19 restrictions last year, now as we