A study published on Monday found that Dubai’s capital gains from residential real estate were much higher than initial estimates, averaging 27.5% every year.
In December 2024, the ValuStrat Price Index (VPI) increased 1.7% month over month to reach 200.7 points. This was a little slowdown from November’s 1.8% increase and the fourth straight decline since August 2024. Villa and apartment values rose to 259 and 162.8 points, respectively, from a base of 100 points in January 2021.
As of right now, the VPI has officially doubled since the epidemic’s height. Statistics from ValuStrat show that growth is still sluggish.
More than 90% of Dubai’s residential and commercial sectors are represented in the sample of properties that the VPI marks to market on a regular basis.
Apartments vs. Villas Villa capital gains increased by 31.6% from the previous year to 2.1% each month. Notable top achievers each year are villas in well-known communities like Jumeirah Islands (42.5%), Palm Jumeirah (42.3%), Emirates Hills (32.3%), and Dubai Hills Estate (32.1%). The two areas with the least progress were Mudon (13.5%) and Jumeirah Village Triangle (21.5%), with Mudon remaining mostly unchanged for the fourth consecutive month. Apartment prices increased by 1.4% per month, for an annual growth of 23.6%.
The Greens (31 percent), Palm Jumeirah (28.3 percent), The Views (27.1 percent), Town Square, and Discovery Gardens (26.4 percent) were the locations with the largest annual capital gains. On the other hand, Dubai Sports City (18.1%) and International City (16.9%) saw the lowest gains in capital value.
Off-plan vs ready homes
Oqood (contract) registrations for off-plan homes increased 26.3% monthly and 513.8% annually, making up 71.1% of all home sales in December. The amount of ready secondary home transactions decreased by 8.7% each month and by 3.4% annually. Prime Home Sales In Downtown Dubai, Business Bay, Jumeirah Bay Island, Palm Jumeirah, Emirates Hills, Blue Waters Island, and District One, there were 29 offers for ready-to-move-in properties that were over Dh30 million.
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Top developers and locations
 In December 2024, Emaar accounted for 12.8 percent of sales, followed by Damac (8.1 percent), Binghatti (7.6 percent), Azizi (5.9 percent), and Sobha (4.6%).
Projects in Business Bay (10.2%), Dubailand Residence Complex (5.7%), and Jumeirah Village Circle (13.1%) had the highest percentage of off-plan transactions.
Jumeirah Village Circle (9.1%), Dubai Marina (6.6%), Business Bay (6.1%), Downtown Dubai (4.8%), and Jumeirah Lake Towers (2.9%) had the highest percentage of ready-to-sell homes.
Business Bay and Dubailand Residence Complex each set new records for the number of off-plan homes sold in a single month in December.
Over 168,000 residential sales took place in the city’s freehold markets during the year, according to data from Emirates NBD. 114,480 units that were still in the building process were sold in 2024. In 2024, they accounted for 68% of all transactions, up from 54% in 2023.
The city has seen a record number of apartment launches in tandem with the astounding increase in demand. 142,000 units were introduced in Dubai in 2024.
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