After a long period of immobility, which somebody even called ‘lethargy’, villa prices in some of the most prestigious Dubai areas start to finally get off the ground. This is evidenced by a recent report from the analytical and statistical firm ValuStrat.
For the first time since mid-2014, prices for luxury villas in areas such as Arabian Ranches, Jumeirah Village and Palm Jumeirah have shown an upward trend and increased by 1.6 - 1.9%.
When calculating it’s price index, ValuStrat takes an absolute value of 100 points (the maximum average residential property price registered in January 2014) as the basis, and analyzes property price changes in 26 areas and residential communities in Dubai against this peak. As of November 2016, the general price index for residential Dubai’s property reached 97.5 points staying almost unchanged during the last 17 months of observation.
At the same time, ValuStrat statisticians have got encouraging news even for apartment owners wishing to sell their homes. According to the report, the same trend towards higher prices is recorded in the apartment sales segment in some Dubai areas. These are, firstly, such locations as Downtown Dubai, Motor City, The Views and Discovery Gardens, where the overall property value increased by 0.9 - 3.1%. Motor City managed to approach the closest to the maximum of 2014, with average housing cost there being just 5.2% lower the peak of January 2014 at the moment.
Dubai’s elite housing market, which also includes exclusive villas and mansions on a manmade island of Palm Jumeirah, is generally considered to be somewhat isolated from the rest of the emirate’s real estate market, thus not having fully experienced the decline in sales prices reported by analysts on the year-on-year basis. The slowdown has in no way affected the major AED 2 million plus home sales transactions. That is, actually, confirmed by recent data from ValuStrat. Besides, ValuStrat’s estimation is a way more ‘far-sighted’ by its nature, for it covers a long period of time, and therefore can be considered the more precise.