Dubai apartment costs rise highest in a decade

Dubai apartment costs rise highest in a decade

Dubai apartment prices rose 15.4 per cent in 2023, the highest annual capital growth for apartments witnessed in a decade, a report showed on Tuesday.

The ValuStrat Price Index (VPI) for December reached 103.1 points, up 19.9 per cent annually, with a slower monthly increase of 2 per cent. This is compared to 100 points set in January 2014 and 112.9 points at the peak during the same year. Apartments were at 84.3 points, and villas at 133.1 points.

The residential market witnessed a slowing in overall price gains in December, the report showed. Capital values of Dubai’s apartments and villas increased at lower monthly rates during the final month of 2023. Secondary ready-home deals dominated transactions, as off-plan sales fell sharply in December.

The best apartment performance compared to the same period last year was recorded in Discovery Gardens (26.4 per cent), mainly driven by Route 2020 Metro extension. This is followed by Palm Jumeirah (25.4 per cent), The Greens (24.3 per cent), Motor City (20.7 per cent), and Town Square (19.5 per cent). Villa prices increased 2.3 per cent when compared with November, and 24.9 per cent since last year. The top annual performers were villas in highly desired Jumeirah Islands