Dubai’s villa sale prices saw a resurgence in deals in the second quarter (Q2) of the year according to the report of ValuStrat, a real estate consultancy, due to the loosening of movement restrictions imposed to combat the spread of COVID-19.
In the second quarter, ValuStrat Price Index (VPI) for Dubai increased by 3.8 percent over the previous quarter, wiping off nearly all capital losses of 2020.
According to the report, villas, which account for 13 percent of Dubai’s residential market, led the way with a 7 percent quarter-on-quarter gain and a 6.3 percent year-on-year increase. Close to 2,231 ready villas and townhouses were sold during the first quarter, compared to 673 units during the same period a year ago.
Higher sales of ready to occupy villas or townhouses were registered in areas such as Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, Damac Hills, and Jumeirah Village Circle, among others.
Residential development has already bottomed out, according to leading developers, executives, and analysts, and presents good prospects for developers on luxury sites. They claim that prices for villas and townhouses have been on the rise for the past seven months and that prices for flats would remain constant in the second half.
According to ValuStrat, apartment transactions in the emirate increased by 1.7 percent in the second quarter compared to the previous three months but fell by 4.8 percent compared to the second quarter of 2020. The best performers were Jumeirah Beach Residence, Palm Jumeirah, Downtown Dubai, and The Views.
The real estate forecast for the second half of the year appeared to be optimistic, especially with Expo 2020 just around the corner. The resale market is also on the rise, due to a steadily rising economy that encourages residents and citizens to upgrade their living space.
The emirate’s return to normal ahead of other cities following a wave of global lockdowns, as well as the UAE’s rapid vaccination campaign, are cited as reasons for the increase in demand for Dubai real estate, which has seen 8,000+ new investors, 30 percent revenue growth for real estate companies, and a more than 10 percent increase in Dubai real estate prices since November 2020.
Dubai real estate staged a strong rebound in the second half also due to stimulus packages, visa reforms and strong demand from end-users and investors.